Global Online Sales Strategy to Counter Trump’s Tariff Policies for Cross-Border E-Commerce

Rapid Changes in U.S. Tariff Policies Under Trump

The tariff war initiated by Donald Trump has begun. On February 3rd (local time), President Trump signed an executive order imposing an additional 25% tariff on all goods imported from Canada and Mexico and a 10% tariff on Chinese products.

What has shocked global e-commerce companies even more is the inclusion of a clause in the executive order stating that the “De Minimis Exemption” will not apply. Currently, the U.S. allows duty-free imports of small packages valued under $800 (approximately KRW 1.17 million) for individuals. However, this exemption will no longer apply to goods from these countries, meaning all imports will be subject to strict tariffs.

[Source] Trump bans China’s ‘de minimis’ route: What it is and why it matters

The U.S. Cross-Border E-Commerce Market: A New Opportunity

This policy shift is expected to deal a significant blow to Chinese e-commerce companies such as Temu, Shein, Alibaba, and AliExpress. These companies have leveraged the de minimis exemption to sell affordable products to U.S. consumers but can no longer rely on this advantage.

From a different perspective, countries not targeted by these regulations could gain a competitive edge in export pricing. For businesses focusing on cross-border online sales targeting U.S. consumers, this is a golden opportunity to capitalize on the still-applicable duty-free benefits, allowing them to offer more competitive prices than Chinese e-commerce platforms.

How to Maximize Duty-Free Limits

1. Product Pricing: Ensure that product prices do not exceed $800 to fully utilize duty-free benefits.
2. Enhanced Marketing Strategies: Highlight messages like “No Tariffs” and “No Additional Costs” in your marketing campaigns to attract consumers.
3. Shipping Satisfaction Management: For cross-border online shoppers, delivery time is a critical factor in overall satisfaction. However, faster shipping often comes with higher costs. Striking the right balance between delivery time and shipping costs based on the target market and product type is essential. Utilizing different shipping carriers for different countries is a practical approach. WISE Commerce’s cross-border service allows you to conveniently access multiple carriers at discounted rates without needing separate contracts.

Execution Matters More Than Perfect Planning

While the Trump administration’s reinforced tariff policies present challenges, strategically leveraging this situation can help Korean businesses enhance their competitiveness in the U.S. e-commerce market and create new opportunities.

It is important to note that tariff policies under the Trump administration are subject to constant change, so staying updated and adjusting strategies accordingly is crucial.

Above all, the key to thriving in a rapidly changing market is not meticulous planning but moving faster than others to seize opportunities.