The Global Entry with Thomas Taggart — A bi-weekly column on navigating global trade, ecommerce, and compliance in a changing world

Read also: Despite 7 in 8 Ecommerce Brands Raising Prices to Offset Tariffs, 96% Still Expect International Sales to Rise in Q4

Peak season 2025 presents an unprecedented convergence of challenges and opportunities. Trade headwinds are intensifying: tariff costs continue climbing, the U.S. de minimis exemption has ended, and customs holds and audits are at an all-time high. Meanwhile, customer expectations for speed and transparency continue to rise.

Yet market conditions aren’t uniformly bleak. Canada’s elimination of its 25% surtax on select U.S. products offers relief, tariff volatility is stabilizing after six months of upheaval, and a weakened dollar is boosting American product competitiveness abroad.

For ecommerce brands, these shifting trade dynamics are colliding with holiday-level order surges. And the numbers tell a stark story: based on a Passport and Drive Research survey of 200 senior ecommerce leaders across the U.S., UK, and Canada, 96% expect international order volumes to grow this Q4 — but only 31% say they’re fully prepared to handle it.

That gap between optimism and readiness makes the coming weeks critical. Brands can’t undo policy shifts or rewind their planning calendars. But they can act decisively now to put systems, strategies, and safeguards in place that will determine whether this season is profitable or painful.

Early Movers vs. Late Starters

Most ecommerce leaders recognize the stakes. 86% began peak planning in the first half of the year, and a small but savvy group (17%) started as far back as late 2024. Those early movers gained time to stress test fulfillment systems, coordinate across marketing and ecommerce teams, and build tariff mitigation into their budgets.

But 1 in 7 leaders admit they didn’t start planning until Q3 — or haven’t started at all. For them, compressed timelines mean fewer opportunities to refine systems or stress test strategies before the busiest sales window of the year. What proactive planners spread out over months, late starters are now racing to solve in weeks.

Pressures Driving Peak Priorities

Survey respondents consistently ranked three priorities as mission-critical this Q4:

• Fast, reliable delivery (57%)
• Reducing shipping costs (41%)
• Customer satisfaction (37%) 

But external factors — especially tariffs and trade policies — are reshaping how brands approach those priorities:

• 99% say tariffs are impacting their peak planning. Section 301 tariffs on China (7.5%–25%) and new IEEPA tariffs (20% for China-origin products) are compounding costs. Reciprocal tariffs ranging from 10% to 50% add more complexity.
• 7 in 8 have already raised prices to offset higher landed costs. For many, the challenge is balancing margin protection with maintaining conversion rates in an increasingly price-sensitive market.
• In Canada, the recent removal of a 25% surtax on U.S. goods has opened new opportunity. Brands selling into Canada are reassessing pricing strategies and marketing budgets to capitalize on lower costs — just in time for Black Friday and Cyber Monday.

The message is clear: ecommerce leaders are walking a tightrope between cost control and customer experience. Those who can protect margins without eroding trust will be the ones that come out ahead.

Five Moves Leaders Are Making

To manage these competing pressures, brands are leaning into five strategies that stand out in the data and in practice:

1. Expanding in-country enablement. Nearly 1 in 4 brands plan to open or expand fulfillment operations in new countries this year, reducing tariff exposure and getting closer to customers. As Sean Frank, CEO of Ridge, put it: “If we’re going to take this seriously, we should have localized inventory on a localized website so that a customer in Germany can get their order in two days like they expect.” 
2. Using Delivered Duty Paid (DDP) shipping. More brands are opting to handle duties and taxes upfront to prevent cart abandonment and avoid surprise fees. Kristina Lopienski of ShipBob noted: “To minimize wait times and cross-border complexities, you can even store inventory in those countries, leveraging an established partner with a global fulfillment network.” 
3. Mitigating tariff costs. Duty drawback has reemerged as a powerful lever in the post–de minimis environment. Brands like Dolls Kill have recovered millions in duties on goods that were imported to the U.S. and later exported, boosting cash flow without raising prices. 
4. Optimizing operations. From supplier diversification to warehouse automation, leaders are fortifying their supply chains. Kabir Samtani of Fulfil.io summed it up: “If you can execute internationally, it can be a big differentiator for the brand.” 
5. Elevating customer experience. Leaders are setting clear cut-off dates, testing pricing tolerance, scaling support, and offering real-time tracking. Avi Moskowitz of PrettyDamnQuick stressed: “It puts you in a much better position in terms of how you communicate before the order’s even placed — from the product page all the way through checkout.”

The Global Trade Context

Ecommerce doesn’t exist in a vacuum — it operates at the mercy of policy and global trade shifts. This year alone:

• The end of the U.S. de minimis exemption means every package bound for U.S. customers now requires a full customs entry, increasing compliance burdens and clearance costs.
• New tariff layers — from Section 301 and IEEPA to reciprocal tariffs — are forcing brands to revisit sourcing strategies, fulfillment locations, and pricing models.
• Canada’s surtax removal is a rare bright spot, opening the door to more competitive U.S.–Canada trade flows during the holiday rush.

These shifts amplify the stakes of peak season readiness. The brands that adapt to regulatory changes quickly — and pair compliance with customer-first experiences — will be best positioned to thrive.

The Bottom Line

Q4 2025 will be a dividing line. Some brands will view tariffs, compliance, and shifting trade rules as insurmountable headwinds. Others will see them as opportunities to differentiate, building resilience into their systems and trust into their customer relationships.

The takeaway is simple: brands can’t control tariffs or policy shifts, but they can control how prepared they are when the rush hits. The leaders who reinforce operations, align pricing strategies, and invest in customer trust today will be the ones turning this challenging peak season into a profitable one.

Author Bio

Thomas Taggart is VP of Global Trade at Passport, a leading global ecommerce solutions provider helping brands like Ridge, HexClad, and Wildflower Cases scale globally with cross-border shipping, expert compliance support, and in-country enablement services. To learn more about Passport, visit passportglobal.com. The Global Entry with Thomas Taggart is a bi-weekly column in Global Trade Magazine covering the strategies, regulations, and insights shaping the future of cross-border commerce.