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**This article is set to be updated as changes happen to provide the most accurate information**
Tariffs—taxes on imported goods—have long been used by governments to protect domestic industries, raise revenue, and influence global trade. In the U.S., tariffs were a primary income source from the Tariff Act of 1789 until World War II, when the country shifted toward free trade and open markets. However, since 2016, a new wave of protectionist policies has brought aggressive tariff changes aimed at reshaping trade and supporting domestic manufacturing. As trade dynamics continue to shift, the landscape is more volatile—leaving businesses, industries, and consumers grappling with uncertainty.
To help brands navigate this complex environment, we’ve outlined the most recent tariff changes and gathered expert perspectives on how businesses can pivot, build resilience, and remain competitive in the face of evolving global trade dynamics.
To better understand the current tariff landscape, its implications for ecommerce, and how brands can strategically adapt, we sat down with Spreetail’s Chief Merchandising Officer, Owen Carr, and Senior Director of Inbound Transportation, Melissa Contrevo, for an in-depth discussion tackling the most pressing questions.
Tariffs imposed on imported goods can have a significant impact on ecommerce businesses, often resulting in higher costs, pricing challenges, and operational disruptions. These effects can ripple through various aspects of a business, prompting many brands to reassess their sourcing strategies and supply chain models.
One of the most immediate effects is the rise in input costs. When tariffs are applied to goods sourced internationally, ecommerce businesses that rely on global suppliers face increased expenses. This can put pressure on profit margins, particularly for companies operating with thin margins or limited pricing flexibility.
To manage these increased costs, businesses are often faced with two difficult options: absorb the added expense or pass it on to the consumer. If businesses choose to absorb the cost, it can lead to profit margin compression, potentially limiting reinvestment and growth opportunities. On the other hand, passing the costs to consumers may result in higher prices, which can dampen demand and affect overall sales performance.
Additionally, tariffs can introduce significant disruptions to global supply chains. Delays increased administrative burdens, and rising transportation costs are just a few of the challenges businesses may face. These disruptions can complicate inventory planning, lead to stockouts or overstock situations, and ultimately impact the speed and reliability of order fulfillment.
Tariffs on imported goods pose substantial challenges for ecommerce businesses, often triggering a cascade of financial and operational impacts. From rising costs to disrupted supply chains, these changes compel brands to revisit their sourcing strategies and reevaluate their approach to inventory management and logistics.
One of the most immediate consequences of tariffs is an increase in input costs. For businesses that depend on international suppliers, this means higher expenses for products, components, or raw materials. These additional costs put pressure on profit margins—particularly for brands with limited pricing flexibility—and may hinder their ability to invest in growth or innovation.
In response to increased costs, ecommerce businesses are typically left with two options: absorb the expense or pass it on to the customer. Absorbing the cost can lead to margin erosion, which may be unsustainable over the long term. Alternatively, raising prices can suppress consumer demand, potentially hurting sales and weakening a brand’s competitive position.
Tariffs can also disrupt the broader supply chain. Increased customs scrutiny, additional paperwork, and rising transportation costs all contribute to delays and uncertainty. These challenges make it harder for businesses to accurately forecast inventory needs and maintain optimal stock levels, which can lead to stockouts, overstocks, or fulfillment delays—eroding customer trust and satisfaction.
To navigate the complexities introduced by shifting tariff policies, brands need to take a proactive and strategic approach. One of the first steps is re-evaluating sourcing strategies and exploring alternative markets. While many businesses have traditionally turned to Southeast Asia as a solution, recent tariff increases—particularly in Vietnam—serve as a reminder that these regions are not immune to trade disruptions. Brands should consider the long-term viability of new sourcing locations and ensure they’re not simply shifting risk from one region to another.
Improving supply chain visibility is also critical. Brands must have tools and systems in place that allow them to respond quickly to changes in trade policy, tariffs, and international regulations. Rapid impact assessment is key—when tariffs change overnight, brands should be able to immediately determine how that affects cost, pricing, margins, and supply chain operations.
Additionally, brands need to take a thoughtful approach to implementing complex trade strategies. This includes understanding Incoterms, evaluating the feasibility of First Sale practices (where tariffs are calculated based on the price from the manufacturer to the intermediary), and considering tariff engineering options. These strategies can offer real financial benefits but require precise execution and collaboration across legal, supply chain, and finance teams.
Finally, aligning with distribution partners is essential. Without a unified strategy across inventory, distribution, and retail channels, inconsistencies can lead to major setbacks. Brands must orchestrate consistent pricing, inventory management, and retail strategy across all partners. Failing to do so creates a competitive disadvantage, particularly as tariff shifts force brands to be more agile and cost-conscious than ever. Strong alignment and high control across every stage of the value chain are key to weathering these challenges effectively.
Tariff changes are accelerating—and while the disruption to ecommerce and global trade is real, this moment creates space for bold moves and smarter strategies. At Spreetail, we’re already evolving our approach in real time, adapting daily as new developments unfold. We see this not just as a challenge, but as a catalyst—for innovation, faster pivots, and solutions that protect and accelerate our partners’ growth.
We’ve been here before. When others pulled back during COVID, Spreetail doubled down—securing the inventory consumers actually needed. That decision fueled real growth. Today, we’re applying the same playbook: acting on data, moving with purpose, and helping brands come out ahead.
Spreetail isn’t just reacting—we’re accelerating our proactive strategy:
This is Spreetail at our best—fast-moving, collaborative, and built to solve complex challenges. We're here to protect our brand partners, create value where others see risk, and keep pushing forward, together.