WARNING: ZERO POLITICS IN THIS POST!
Back in the vibrant 1960s, community organizer Saul Alinsky coined the phrase “Think global, act local.” It was about making big changes through local action during a time of social revolution and cultural shifts. No wonder one of his books is titled, Rules for Radicals.
In today’s global e-commerce world, that saying still feels right—but with tariffs, thinking global and acting local can create real challenges. Tariffs aren’t just political talk; they are practical costs that affect margins and customer experience, one order at a time.
For leaders and innovators, understanding tariffs as operational realities—not just taxes—is key to succeeding in international markets.
What Are Tariffs? A Simple Primer
Tariffs are taxes imposed by governments on imported goods.
Operationally, they increase the total cost of shipping products across borders.
Besides the tariff itself, businesses must also pay related fees for duties, customs, brokerage, and compliance.
These costs change depending on the product type, the country the goods come from, and where they’re going.
If you source globally, you’ll face exposure to these fluctuating charges.
Tariffs are real expenses that impact your pricing and profitability.
Why Managing Tariffs Matters Globally
Tariffs can unpredictably raise your product costs.
If tariffs aren’t managed clearly, customers may face surprising fees, hurting trust and causing lost sales.
Transparent tariff strategies protect your bottom line and improve the buyer’s experience.
Ignoring tariffs risks squeezed margins and unhappy customers.
Leaders and innovators must see tariff management as critical to both margins and customer satisfaction, not just regulatory hurdles.
How B2B and B2C Differ in Handling Tariffs
Both B2B and B2C businesses feel the tariff impact but respond differently.
B2C brands:
- Often include tariffs in the base price (Delivered Duties Paid or DDP) to avoid surprises.
- Sometimes show tariffs separately at checkout using duty calculators like Zonos or Easyship.
- May require customers to pay tariffs upon delivery (Delivered Duties Unpaid or DDU), which risks abandoned carts.
- Occasionally charge flat-rate “international fees” to cover average duties for simplicity.
B2B businesses:
- Usually pass tariffs through in invoices or contracts with clear terms.
- Define tariff responsibilities in contracts using Incoterms like FOB (buyer pays) or DDP (seller pays).
- Use automated tools to estimate tariffs during quoting and ordering, important for large or international orders.
- Sometimes absorb duties partially for competitive advantage in long-term partnerships.
Operational Challenges to Address
Global sourcing means you are exposed to variable tariffs.
Tariffs vary widely by product category, origin, and destination country.
Besides tariffs, customs brokerage and compliance fees increase landed costs.
These costs affect profitability, pricing transparency, and the overall customer experience.
Handling fluctuating tariffs requires flexible systems and clear communication.
Why Tariffs Demand Attention from Leaders
Tariffs affect finance, supply chain, and customer experience teams.
Accurate tariff forecasting supports better pricing and margin management.
Agile supply chains are necessary to adapt quickly to tariff changes.
Clear, upfront communication reduces surprises and builds buyer trust.
Tariff strategy is a cross-functional challenge that requires focus and collaboration.
In global e-commerce, tariffs perfectly illustrate the idea of “thinking global, acting local.” Your customers see the tariff impact locally at purchase, but the root cause comes from global trade.
For leaders and innovators, mastering tariffs means deploying smart strategies and technology that keep margins healthy and customers happy—wherever you sell.