Global Sellers Hit by U.S. Tariffs Are Turning to Latin America — Here’s Why

With Donald Trump back in office as of January 2025, his “America First” trade agenda has returned—bringing a new wave of aggressive U.S. tariffs and protectionist measures. For global sellers, this moment marks a turning point: exporting to the U.S. is no longer business as usual.

As international brands confront rising costs, regulatory uncertainty, and shifting supply chains, Latin America is quickly emerging as a strategic alternative—indeed, a region where ecommerce is booming, competition is less intense, and tariff exposure can be mitigated.

Trump’s Tariff Timeline: What’s Happening and Why It Matters

The Trump administration is making tariffs the centerpiece of its trade policy once again—especially targeting China. As a result, these measures are already reshaping global ecommerce. Here’s a timeline of key events:

• April 2 – “Tariff Liberation Day” introduces reciprocal tariffs on many countries; a baseline 10% tariff is applied to general imports, while China faces up to 125%.
• April 5 – The 10% blanket tariff goes into effect, affecting a broad range of consumer goods sold via ecommerce.
• April 9 – Country-specific tariffs are frozen for 90 days (except for China).
• April 10 – Final confirmation: 145% tariff on Chinese imports, combining all prior measures.
• April 12 – Smartphones, laptops, and select electronics receive temporary exemptions.
• May 2 – End of de minimis, meaning no more duty-free shipments from China or Hong Kong—even for low-value ecommerce orders.

These changes are making it increasingly difficult for international sellers to compete in the U.S. market, particularly those who rely on affordable, cross-border ecommerce logistics.

Why These U.S. Tariffs Are a Big Deal for Ecommerce Sellers

Trump’s tariff agenda isn’t just a geopolitical headline—it’s a real threat to ecommerce profitability. Here’s how:

Threats Sellers Are Facing

• Stock Shortages: Disrupted supply chains are leading to inventory gaps, especially for high-demand items.
• Profit Margin Pressure: Rising costs cannot always be passed on to consumers, particularly in price-sensitive categories.
• Reduced Competitiveness: Sellers of commoditized products (like gadgets, toys, and accessories) may lose their price edge as costs increase.
• Forecasting Challenges: Constant regulatory changes are making inventory and pricing strategy planning nearly impossible.

For Chinese exporters, these U.S. tariffs have drastically reduced access to what was once their largest and most profitable market. Consequently, relying solely on the U.S. is no longer viable—diversification is now urgent. Meanwhile, U.S.-based brands that source from China are now facing higher costs and shrinking margins. As a result, selling domestically is becoming less profitable, prompting many to seek alternatives.

What the End of De Minimis Means for Cross-Border Ecommerce

One of the most significant changes announced is the modification of the de minimis rule for shipments from China and Hong Kong. Until now, ecommerce sellers could ship low-cost goods (under $800) into the U.S. without paying duties. However, this will no longer be the case, as new restrictions are being put in place.

• Tariffs to postal shipments: 120% ad valorem tariff or a per-item duty of USD100 (rising to USD200 on June 1).
• Result: Higher costs, longer delivery times, and added complexity for cross-border ecommerce fulfillment.

Why Latin America Is the Next Frontier Amid Rising U.S. Tariffs

Amid growing barriers to selling in the U.S., Latin America offers international sellers a more stable, cost-effective, and fast-growing alternative.

It’s not just a new opportunity—it’s a strategic necessity. For Chinese sellers, markets like Brazil offer a workaround to bypass U.S. tariffs. For U.S. brands, Latin America provides a path to reclaim profitability through lower costs, fewer tariffs, and booming demand.

What Makes LATAM So Attractive?

• Lower Tariff Exposure: Countries like Mexico and Brazil offer trade environments that are currently far less restrictive.
• Fast-Growing Ecommerce Market: The region is seeing double-digit growth, fueled by digital adoption, fintech, and marketplace expansion.
• Major Marketplaces Are Thriving: Platforms like Mercado Libre, Amazon Mexico, Magalu, and Carrefour make it easy to localize and scale.
• Strategic Geography: For U.S. sellers, Mexico is tariff-exempt and logistically accessible. Chinese sellers are looking to Brazil as a workaround for U.S. barriers.

Why Brazil?

• Supportive Tax Structures: Direct import models are viable with current tax regulations.
• Consumer Demand: Brazil’s internet-savvy middle class is increasingly shopping online across electronics, toys, beauty, and more.

How Sellers Can Turn Challenges into Opportunities

If you’re a global seller navigating trade uncertainty, Latin America should be a core pillar of your strategy. Here’s how to seize the opportunity:

Steps to Stay Ahead

1. Mitigate Supply Chain Risks: Adopt nearshoring or explore direct-to-consumer logistics in LATAM to avoid U.S. tariffs entirely.
   
2. Diversify Your Sales Channels: Reduce reliance on U.S. marketplaces. Expand into LATAM platforms that offer built-in consumer trust and fulfillment solutions.
   
3. Adapt Pricing and Sourcing Models: Source from tariff-friendly countries, adjust pricing for new markets, and localize product offerings based on regional demand.
   
4. Partner with Regional Experts: Work with local ecommerce enablers, compliance specialists, and logistics providers to speed up market entry and ensure regulatory alignment.

Final Takeaway: Don’t Let U.S. Tariffs Define Your Growth

The global trade landscape is changing fast—and sellers who depend solely on the U.S. market may find themselves left behind. Whether you’re based in China or the U.S., now is the time to diversify into Latin America.

Tariffs may be a barrier, but Latin America is the door to new growth. Act now to stay ahead of the curve—and turn global disruption into regional opportunity.

Want to Dive Deeper into the Impact of U.S. Tariffs?

Curious why more international sellers are turning to LATAM? Join us at Unlock LATAM on May 14th, 2025, at PayPal’s New York offices.

You’ll hear from speakers at Mercado Libre, Sony, GoPro, Bank of America, and EMARKETER as they discuss how to thrive in the region’s digital economy—and how to adapt your strategy for this new era of global ecommerce.

Last spots available – register now before we’re full!