Tariffs, trade wars and borderless shopping

This article is authored by Somdutta Singh, founder and CEO, Assiduus Global.

Cross-border shopping used to feel simple. You clicked buy, a parcel arrived. That world is changing, but there is an upside. Clearer rules help brands set honest prices, reduce delivery surprises, and build trust with customers who know what they will pay.

Donald Trump(AP)

In US, the duty-free de minimis exemption for commercial shipments has been suspended, and customs has confirmed it is ready to enforce the change. The European Union applies value added tax to all commercial imports through the Import One-Stop Shop and has proposed ending the separate €150 customs duty exemption for low-value consignments. The UK follows a similar approach, charging value added tax (VAT) at the point of sale for consignments up to £135. In Asia-Pacific, Australia, New Zealand, and Singapore collect goods and services tax (GST) on low-value imports, while India’s trade policy places strict limits on the use of the gift route for commercial items. Canada has tightened its thresholds, with courier rules shaping how parcels move across its borders.

Teams can turn these updates into better customer experiences by making delivered duty paid the default for cross-border orders, showing the total price up front, and using local mechanisms for tax collection where available. This reduces cart abandonment and delivery disputes because the amount at checkout matches what arrives at the door. Price architecture reflects this with inclusive prices in markets that expect taxes at checkout and a “taxes and duties included” note on product pages, in the cart, and in order confirmations.

Data quality is a win. Accurate HS codes, country of origin, and plain-language item descriptions reduce inspections and holds, which means more on-time deliveries, fewer support tickets, and better marketplace ratings. Lightweight automation can validate codes and keep documents in sync as catalogues change, so compliance stays current without extra manual effort.

Fulfilment can add value through assembly, packaging, or staging closer to buyers, cutting delivery times and softening policy shifts without overhauling supply chains. A small premium for flexibility pays back in faster shipping, steadier costs, and happier customers. Costs also drop by right-sizing packaging, bundling frequent buys, and offering delivery options that meet expectations without extra fees.

Service and returns should mirror the new flow. A clear pre-delivery tax message, simple return labels, and proactive notifications lower churn and protect ratings. When customers get what they paid for, faster, they’re more likely to come back for another purchase and continue buying from the same brand.

These systems also make operations simpler. In the EU, the Import One-Stop Shop centralises VAT collection for distance sales, so finance teams reconcile fewer jurisdictions and customers see the true total up front. In North America, near-market shifts are tangible: US trade data shows Mexico was the top goods trading partner in 2023, enabling faster replenishment and steadier delivery promises.

The bottom line is constructive. Cheap cross-border orders are harder to rely on, but brands that focus on transparent totals, strong data, local tax collection, and near-market fulfilment can deliver cleaner checkouts, faster delivery, and higher repeat purchase rates. This shift adds short-term work and builds a clearer, more trusted cross-border checkout for everyone involved.

This article is authored by Somdutta Singh, founder and CEO, Assiduus Global.