🚨 Trump’s Tariff Shake-Up: What It Means for E-Commerce

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In today’s newsletter 

• Trump’s tariff shake-up: navigating the new trade landscape

• A smarter way to boost Amazon sales—without higher ad spend

• The Art of Vertical Scaling

• Meta ads might be draining your budget—here’s what actually works!

• Start and scale your e-Commerce business

• Latest News: WhatsApp adds new ways for businesses to send promotional DMs & more…

  Let's dive into it!👇

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• Paid Ads - Talk to Sai

• Growing on Social Media - Talk to Hana

Trump’s tariff shake-up: navigating the new trade landscape

On April 2, 2025, President Donald Trump announced a sweeping set of tariffs that are set to shake up global trade—and especially impact e-commerce brands. This new policy aims to level the playing field in international trade but also brings immediate challenges for companies that depend on global supply chains.

What’s Happening

The new trade directive introduces a baseline tariff of 10% on nearly all imports starting April 5, 2025. For certain countries with significant trade imbalances, the rates are even higher: imports from China now face a 34% tariff, Japan 24%, the European Union 20%, and Vietnam a staggering 46%. Notably, North American partners—Canada and Mexico—remain largely exempt under USMCA rules, although non-compliant goods could see tariffs as high as 25%.

Another critical change is the elimination of the de minimis rule that previously allowed low-value shipments (under $800) to enter duty-free. This loophole has long benefited direct-to-consumer (DTC) brands by keeping small, inexpensive orders tax-free. With its closure, even modest orders will now carry additional costs, fundamentally altering the pricing equation for many online sellers.

Why It Matters

Cost Increases

For e-commerce brands, these tariffs translate directly into higher costs for imported goods. A 10% baseline tariff means that a product sourced abroad is now inherently more expensive—an effect that is magnified with products from heavily tariched countries like China or Vietnam. Many brands face a dilemma: absorb these increased costs, risking squeezed profit margins, or pass them on to consumers, potentially dampening sales. Analysts warn that if tariffs are fully passed on, consumers could face significantly higher prices, leading to reduced demand.

Supply Chain Disruptions

E-commerce companies, especially those heavily reliant on Asian manufacturing, are likely to encounter supply chain turbulence. Companies might need to quickly source from alternative markets to avoid the steep tariffs or renegotiate existing contracts. The sudden increase in costs may lead to delays or rushed shipments as brands scramble to adjust their inventory strategies—similar to the supply chain challenges seen during the pandemic, but now driven by trade policy rather than a health crisis.

Global Trade Tensions

Trump’s tariff announcement has ignited concerns of escalating global trade tensions. A swift retaliatory response from affected countries is already on the horizon. China and the EU have signaled potential countermeasures, which could lead to a broader trade war. For e-commerce companies, this means not only dealing with higher import costs but also facing a more volatile international market, where future trade restrictions may further complicate global operations.

Consumer Behavior and Demand

As costs rise, the pricing pressure may shift consumer behavior. Already cautious after years of inflation, American shoppers might delay or reduce discretionary spending. The end of duty-free small shipments further challenges DTC brands that have relied on low-cost imports to drive impulse purchases. In this environment, maintaining consumer confidence and value perception becomes essential, as brands may need to explore promotions, bundled offers, or emphasize quality to justify higher prices.

What You Can Do

Diversify Your Supply Chain:
Consider expanding your supplier base beyond heavily affected countries. Look into nearshoring or domestic manufacturing options to reduce tariff exposure. Even partial shifts can mitigate risk.

Adjust Your Pricing Strategy:
Analyze which products can bear modest price increases without deterring customers. Consider transparent pricing models—perhaps even a small “tariff surcharge” line item—to manage consumer expectations while preserving margins.

Leverage Technology:
Invest in forecasting and inventory management tools. Scenario planning software can help simulate cost impacts under various tariff levels, enabling more agile decision-making in procurement and pricing.

Strengthen Domestic Partnerships:
Bolster relationships with U.S. or regional manufacturers to reduce reliance on foreign suppliers. This not only helps in managing tariff costs but can also serve as a marketing advantage by highlighting “Made in USA” credentials.

Long-Term Outlook and Conclusion

Looking ahead, these tariffs might not just be a short-term shock but could signal a broader shift in global trade. If retaliatory measures escalate, companies may see a restructured landscape where domestic sourcing becomes more competitive, and global supply chains are rebalanced. While the immediate impact is disruptive, the long-term effects could drive innovation in supply chain resilience and pricing strategy.

For e-commerce leaders, the key lies in agility. Adapt your sourcing, pricing, and inventory strategies now to buffer against ongoing uncertainties. With proactive planning, your brand can not only weather this tariff storm but also position itself for future success in an evolving trade environment.

Key Takeaways

• Broad Tariffs: A new 10% tariff applies to most imports, with significantly higher rates for China, Japan, the EU, and Vietnam.

• Cost and Supply Chain Impacts: Rising import costs and potential supply chain disruptions will squeeze margins and may delay shipments.

• Global Trade Tensions: Expect possible retaliatory measures from trade partners, adding volatility to the international market.

• Strategic Responses: Diversify suppliers, adjust pricing strategies, invest in tech for forecasting, and explore domestic partnerships.

• Consumer Dynamics: Higher costs may temper consumer spending, requiring brands to work harder to maintain value perception.

A Smarter Way to Boost Amazon Sales—Without Higher Ad Spend

Top Amazon sellers are adding affiliate marketing to the equation—driving external traffic from blogs, review sites, and creators, and only paying when it converts.

The result?

✅ Lower ad spend
✅ Higher organic rankings
✅ More sales

Levanta made a free guide on how to get started, which networks to use, and finding affiliates that perform.

Grab the Guide

The Art of Vertical Scaling

Have you passed your ads through the checklist I shared yesterday?

Do you have a couple of winners that you could figure out from your ad account?

Then here’s what you need to do to extract as much as possible from it.

Introducing Vertical Scaling: Increase your ad budget without tanking your ROAS.

Here’s how to do it right:

1. Increase Budget Gradually

Bump your budget by 10-15% every 2-3 days. This gives Meta’s algorithm time to adjust without pushing your campaign back into the learning phase.

Example: Spending $100/day? Increase it to $110-$115/day and monitor the impact.

2. Track Key Metrics

Don’t scale blind. Watch your CTR, CPC, and CPM closely. Rising CPC or dropping CTR? That’s a red flag. Pause budget increment before scaling further.

3. Leverage Campaign Budget Optimization (CBO)

Duplicate your ads into Advantage+ CBO to let Meta distribute your budget where it’s performing best. This can keep your CPA low while maximizing results.

4. Keep Frequency in Check

If your ad frequency crosses 3, expect fatigue. Refresh your creative with minor tweaks.

5. Test Your Limits

Increase spend gradually until you spot diminishing returns. If ROAS drops after hitting $500/day, scale back to $400-$450/day to maintain profitability.

Avoid These Mistakes:

• Scaling too quickly: Sudden jumps reset the learning phase.

• Ignoring early metrics: ROAS isn’t the only number that matters.

• Neglecting fatigue: Even the best ads need creative refreshes.

Final Thought

Vertical scaling is all about control. Gradual budget increases, sharp metric monitoring, and timely adjustments will keep your campaigns profitable.

If you’re ready to scale but unsure how to proceed, I can help you out.

If you are an e-commerce business spending >$10,000 per month & looking for a reliable partner who can scale.

🚨 Meta ads might be draining your budget—here’s what actually works!

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📰 In the News

👉WhatsApp adds new ways for businesses to send promotional DMs

WhatsApp is introducing new tools for businesses to send promotional direct messages (DMs) to previous customers, including business "broadcasts" that enable broader reach. If you're utilizing WhatsApp for business, these updates provide enhanced opportunities to re-engage past customers, promote products or services, and potentially increase sales through more direct and personalized communication.

👉Interactive email is the game changer brands can’t ignore
Interactive emails transform passive readers into active participants by incorporating elements like quizzes, carousels, and gamification, leading to increased engagement and conversions. Implementing interactive features in your email campaigns can significantly enhance customer engagement, boost conversion rates, and strengthen brand loyalty by providing more dynamic and personalized experiences.

Have any questions that you need help with?

Ask here - look out for Friday’s issue where Ibrahim will answer them.