What Trump’s New Tariffs Mean for Cross-Border Ecommerce in 2025
Darwish Gani
Co-Founder at OpenBorder, Pangaea
As many of you know, the trade policy landscape shifted significantly yesterday. On April 2, 2025, President Donald Trump announced sweeping new tariffs on imported goods, escalating trade tensions and triggering global reactions. These changes carry serious implications for cross-border ecommerce brands, especially those selling into or sourcing from the U.S., Canada, Mexico, China, and the EU.
At OpenBorder, we’re committed to keeping our customers informed and supported through moments like this. Below, we’ve outlined what’s changed, what’s next, and what it all means for ecommerce companies navigating global growth.
Detailed Timeline of 2025 Tariff Developments
January 20: The new U.S. administration signaled forthcoming global tariff reforms, indicating a shift towards more protectionist trade policies.
February 3: President Trump announced a 30-day pause on the proposed 25% tariff increases on imports from Canada and Mexico to allow for negotiations.
March 3–4: The U.S. implemented the 25% tariffs on imports from Canada and Mexico as planned. In retaliation, Canada imposed immediate countermeasures, including tariffs on select U.S. commodities.
March 6: Temporary exemptions were issued for goods compliant with the United States-Mexico-Canada Agreement (USMCA), partially reversing the earlier tariffs. This exemption was set to last until April 2.
March 12: The U.S. expanded its tariff measures by imposing a 25% tariff on all steel and aluminum imports globally, affecting imports from all countries without exemptions.
April 2: In a significant escalation, President Trump announced a series of new tariffs, collectively referred to as the "Liberation Day" tariffs.
Baseline Tariff: A universal 10% tariff on all imported goods from all countries, effective April 5 (not including Canada and Mexico, who already have previous agreements with the U.S.).
Country-Specific Tariffs: Higher tariffs on specific countries perceived to have unfair trade practices, effective April 5-9th.
Automobile Tariffs: 25% tariff on all foreign-made automobiles, effective April 3.
Exemptions: Certain sectors, such as pharmaceuticals, semiconductors, and select materials, were exempted from these tariffs.
April 3: The 25% tariff on all foreign-made automobiles came into effect.
April 5: The universal 10% tariff on all imported goods is scheduled to take effect.
April 9: The country-specific higher tariffs are scheduled to take effect.
April 15: The European Union plans to implement countermeasures targeting up to €26 billion ($28 billion) of U.S. goods in response to the U.S. tariffs.
These tariffs are not just abstract policy changes. They directly affect ecommerce brands in two primary areas:
1. Increased Cost of Goods Sold (COGS)
If your supply chain includes products or raw materials sourced from China, the EU, or Mexico, you could see immediate cost increases of 10 to 34 percent. These costs may be passed to consumers or absorbed by merchants, creating pressure on margins.
2. Fulfillment and Compliance Complexity
Tariffs add new layers to customs compliance and tax calculation. Brands fulfilling cross-border orders may face longer delivery timelines, higher landed costs, and customer confusion if duties are not clearly communicated during checkout.
What You Can Do Now
Even with this uncertainty, ecommerce operators can take actionable steps today:
Review your supply chain and harmonized system (HS) codes Understand which of your products are affected and evaluate alternative sourcing options.
Reprice or bundle strategically Consider creating bundles or value-add offers to increase average order value and offset margin compression.
Weight based shipping rates will be more important You will want to find ways to make sure extra margin is not slipping on orders
Improve transparency at checkout Make sure customers are aware of duties, taxes, and shipping timelines before completing a purchase.
Explore duty-free fulfillment strategies Consider fulfilling locally or leveraging tariff exemptions available through trade agreements like USMCA.
Assess your customers’ price sensitivity and ability to absorb tariff costs before fully passing them on Experimenting with different pricing, shipping, and customs subsidy strategies will help you find the best approach that balances your profit margins with customer budgets. This will allow you to identify an optimal setup that minimizes the impact on sales while managing tariff costs effectively.
Our Commitment to You
At OpenBorder, we remain focused on helping brands grow internationally with confidence. Our team is actively monitoring trade developments and adjusting our services to help you stay compliant, minimize costs, and maintain a great customer experience across borders. As this dynamic situation continues to develop, you can feel assured that our tax and duty engine will continue to automatically update based on the latest rules and regulations. OpenBorder can help strategize the optimal pricing, shipping, and customs setup that best aligns with both your business goals and your customers’ needs.
If you have questions about how these tariffs may affect your operations, our trade and logistics specialists are ready to help.
We are here to support you through this transition and help you navigate the evolving trade landscape.