Sorting Out The Tariff Raff
Trump's Tariff's are here to stay, it's time to make a plan...
In our original article on Trump's Tariffs & Vance, we laid out the foundations of how these policies are reshaping global trade. Since then, the situation has evolved, and for e-commerce brands, one thing is now clear: doing nothing is not an option.
The Latest on Trump’s Tariffs
So, the latest tariffs mainly effect the big marketplaces (Shein and Temu will be hit really hard) - but there will be a trickle down effect for retail brands, so pay attention to this bit:
Trump’s latest trade measures include a 10% tariff on Chinese goods and a 25% tariff on imports from Canada and Mexico (delayed for a month). But one of the most significant shifts for brands is the suspension of the de minimis rule, which previously allowed low-value goods (under $800) to enter the U.S. duty-free.
This is a direct hit to retail businesses that rely on low-cost international suppliers, particularly those that have built their business model on direct-from-China shipments or haven’t invested in owned warehousing or 3PL’s yet.
That said, if your brand isn't shipping directly from the affected countries, you might not be feeling the immediate impact—yet. But tariff policies are evolving, and waiting until your goods are directly affected could leave you scrambling. Having an action plan in place now will ensure you're prepared if or when further tariffs are imposed on your imports into the U.S.
What Does This Mean for Brands?
Increased Costs Across the Board – Whether you import raw materials or finished goods, tariffs will drive up expenses. Brands will either need to absorb costs or adjust pricing to maintain margins.
Supply Chain Disruptions – With fewer duty-free options, businesses relying on global manufacturers will need to reassess their sourcing strategies.
Competitive Rebalancing – Some domestic retailers welcome these changes, arguing that they level the playing field against marketplace giants who previously skirted tariffs.
Consumer Price Hikes – With rising tariffs on imported goods, businesses are faced with higher costs, which often get passed down to consumers.
How Should Brands Respond?
Sitting back and hoping these tariffs “blow over” is a risk that could cost you market share. The smartest retail operators are already making moves to future-proof their businesses. Here’s how:
1. Diversify Your Supply Chain
The brands that come out ahead will be those that proactively seek new suppliers and manufacturing hubs. If you’re too reliant on China, now is the time to explore alternatives in Vietnam, India, or even US domestic production where possible. However, it’s crucial to have multiple options. Chinese companies are already shifting operations to Vietnam, processing materials imported from China, and labeling their products as 'Made in Vietnam' to sidestep tariffs.
"Chinese businesses [are] moving to Vietnam and are processing their imported materials from China and then labeling their products as 'Made in Vietnam' before exporting to the U.S. The U.S. will definitely examine this issue carefully."
Nguyen Quang A, an economic political observer and businessman in Hanoi
If the U.S. cracks down on this, brands relying solely on Vietnam may find themselves back at square one. A diversified supply chain is the only way to stay ahead of shifting trade policies.
2. Adapt Your Pricing Strategy
With cost volatility on the horizon, a static pricing model won’t cut it. Use dynamic pricing tools to adjust based on supplier costs, demand trends, and competitor movements. Being flexible can help you maintain profitability while staying competitive.
3. Communicate with Customers
If price increases are inevitable, be upfront and honest. Customers appreciate transparency, and brands that take the time to educate their audience on pricing decisions tend to build stronger long-term trust.
4. Leverage Technology for Supply Chain Optimisation
Predictive analytics, AI-powered inventory management, and automated supplier tracking can help mitigate the risks of tariff-driven supply chain disruptions. Investing in the right tools today could mean smoother operations and fewer sleepless nights down the line.
5. Plan for the Long-Term Trade Landscape
This isn’t just a temporary blip. The U.S. and its trading partners are preparing for a long-term economic realignment. If you’re not rethinking your sourcing, pricing, and logistics strategies now, you’ll be left reacting when it’s too late.
The Bottom Line: Start Now and Sleep Better at Night
The brands that thrive in this new era won’t be the ones who wait and see. They’ll be the ones who act. Tariffs are here to stay, supply chains are shifting, and competitive advantages will go to those who take decisive steps now.
Adapt. Reposition. Future-proof your business. Don’t wait, start now—and sleep better at night.
No one can predict exactly how these tariffs will shape the future of retail—whether in the U.S. or across global markets. But we’re not in the business of guessing; we’re in the boardrooms of the fastest-growing brands, seeing first-hand how they’re adapting. We’ll keep bringing you the sharpest insights, the latest shifts, and the strategies that matter—right here in this newsletter.