Matthew Ware, CEO of e-commerce trade and cross-border logistics company, Mark 3 International, discusses best practices for shipping products into and out of North America in the context of navigating emerging tariffs.
NAVIGATING GLOBAL TRADE AND TARIFFS IN THE AGE OF E-COMMERCE
The idea that mutual benefits arising from trade encourage peaceful relations between nations is often attributed to 18th-century Enlightenment thinkers from both sides of the Channel.
But nearly 2,000 years ago, Plutarch wrote that sea trade allowed states to “redress defects” in their relationships through mutual exchange.
‘Doux commerce’ – meaning sweet or gentle commerce – encapsulates this idea and posits further benefits that include fostering trust, integrity, tolerance, and fairness.
It’s a lot with which to burden a theory and, under its modern guise as globalization, there are detractors which point out how it can create increased inequality and exploitation.
However, globalization is not new. From the ancient silk roads through to the industrial revolution, trade has expanded by creating shorter, faster routes and ever-better technologies by which to transport goods.
Today, shipping products around the world has never been more competitive which, for businesses that rely on it, means better service, lower costs, and more options.
Powered by a plethora of inventions, innovations, and ideas, today’s global trading ecosystem is vast, complex, and highly competitive.
Yet, it is driven by seeking to meet a single, simple need – someone, somewhere, wants to buy something from someone else, somewhere else.
Making that happen quickly, cost-effectively, and securely is what drives the global ecosystem and is behind the explosive growth in e-commerce and supply chains underpinning virtually all the world’s manufacturing operations today.
So, when trade is disrupted through man-made interventions such as war or tariff manipulation, there are serious consequences.
For example, the US accounted for 13 percent of the UK’s total exports in April 2025, down from 21 percent the previous month.
Further to this, exports to the US fell by a staggering 47 percent compared to March 2025 according to UK government figures.
The Office for National Statistics suggested this was likely linked to the implementation of tariffs on goods imported to the US.
Perhaps not a hugely surprising conclusion, but clearly one of major importance.
WHERE THERE’S A WILL
Companies can mitigate the impact of tariffs in several ways – perhaps the most obvious of which is simply to source products and components from other unaffected countries.
A more radical move would be to shift production to countries where the tariffs don’t apply.
For example, Apple is currently shifting some of its manufacturing from China to India and Vietnam.
Let’s just think about that for a moment. For an earlier generation, peaceful relations between the US and Vietnam seemed impossible – yet today the two countries are deeply involved in mutually beneficial commerce.
As much as these options are superficially attractive, they come with significant challenges, not least cost and delay.
Alternatively, companies can adjust their prices – seeking to recover profits from their customers. Again, a difficult choice as demand could easily fall.
Several other options, including entering into cost-sharing agreements with suppliers either temporarily or via discounts, could alleviate some of the pressure.
Other possibilities include the use of Free Trade Zones, whereby goods can be imported into the US but kept in bonded warehouses where no tariffs are due as long as they remain there.
For e-commerce traders, there are opportunities to structure shipments so they fall within the destination country’s tariff thresholds, including the ‘de minimis’ threshold.
This can streamline logistics and improve delivery times, critical considerations for the global e-commerce trader.
A practical approach is to work with a logistics company that understands all these options so it can advise on the best way to cope.
They will typically have the ability to choose optimal routes that minimize costs and delivery times, made possible by having strong relationships with major carriers and local delivery partners.
Working with such a partner can also help with onerous paperwork associated with international shipments.
MAXIMISING DE MINIMIS
The UK is the third-largest e-commerce market in the world after China and the US according to the US government’s International Trade Administration.
De minimis thresholds are set by each country and imported goods below those values do not attract tax or duties, working to support global e-commerce that typically consists of small, relatively low-value packages.
In the US, de minimis is set at $800, whilst in the EU, de minimis is set at €150, and in the UK it is £135.
A report from Reuters notes that the number of de minimis packages entering the US approached 1.4 billion in 2024, largely due to the growth of online shopping.
This would soon overrun customs operations and major parcel carriers, if they were to process taxes and duties on each individual package.
The report adds that more than 90 percent of all packages coming into the US now enter via de minimis.
As such, it is clear to see how entirely removing de minimis exemptions could cripple e-commerce shipments across the world – but perhaps there is a case for lowering the threshold.
RECIPROCAL TRADE RELATIONS
Evidently, peace is necessary for trade to be conducted freely.
But the relationship is reciprocal – trade can be the foundation for peaceful relations, while commerce breeds trust.
The impacts of man-made disruptions to trade can be mitigated in a number of ways, but perhaps the best approach is to seek expert help.
Ultimately, if asked what to do when faced with challenges to the global trading order, the answer is – doux commerce.
