Beyond tariffs: seizing the emerging markets edge

As global commerce becomes more complex—with rising tariffs, shifting alliances, growing protectionism, and supply chain uncertainty—global businesses are asking the same question: Where should growth efforts go next?

With U.S.-China trade tensions rising and Europe facing economic headwinds, a new growth horizon is emerging. Africa, Asia, and Latin America — home to over 5 billion consumers and fast-growing digital economies — offer global businesses a rare combination: rising demand, digital adoption, and fewer barriers to cross-border trade.

What's driving the shift?

Recent tariff moves — particularly in the U.S. — are making cross-border sales more complex, costly, and unpredictable. Products from Asia and Europe now face duties ranging from 30% to 55%, while retaliatory measures continue to limit access to key markets.

For global businesses, this translates into:

• Higher prices and shrinking margins in developed markets
• Rising compliance challenges — from stricter de minimis thresholds to evolving digital tax rules
• Lower checkout conversion as customers face unexpected fees at delivery

As the OECD notes, these dynamics — combined with inflationary pressures and regulatory tightening in Europe — are forcing global brands to re-examine their international strategies.

Rethinking global growth strategy

It’s not just about reacting to tariffs. It’s about seeing this moment as a pivot point to grow smarter.

• Reallocate your budget to regions with lower taxes and growing digital demand.
• Take advantage of higher de minimis thresholds to ship more cost-effectively without unexpected duties.
• Adjust your pricing and packaging to align with local tax rules.
• Move quickly into markets with favorable VAT or limited digital taxes before your competitors.
• Work with local experts to stay ahead of regulatory changes and improve your strategy.

The Bottom Line

Tariffs and trade barriers are reshaping the map of global commerce. For international brands, the question is no longer just how to navigate these challenges — but where to find the next frontier of sustainable growth.

Emerging markets across Africa, Asia and Latin America are increasingly that answer — combining rising digital adoption with more accessible trade environments.

As the global landscape shifts, agility and local insight will be key to staying competitive.

Emerging Markets are the catalysts

In contrast, many emerging markets offer a clearer, more favorable landscape for international growth — with lower tariffs, higher de minimis thresholds, and tax frameworks designed to encourage cross-border commerce.

Our analysis of tariffs and tax policies across key markets highlights this divergence:

_{*Disclaimer: This is a selection of some of the markets we operate in, for reference only. Conditions may vary by industry. Please consult specific cases for accurate guidance.}

What we looked at for each of these high-opportunity markets, we analyzed:

• Tariffs on Digital Goods: VAT or digital services taxes (DST) that apply to cross-border SaaS, streaming, etc.
• Tariffs on Physical Goods: Import duties and VAT charged on delivered products.
• De Minimis Threshold: The value under which goods can enter a market duty-free or tax-free.

These are three critical drivers for immediate action:

• Cut costs and boost margins in countries like Mexico, Colombia, the Philippines, and Chile, where import duties are low and many low-value goods enter tax-free. This benefits both price-sensitive customers and your margins.
• Get into digital goods markets faster in places like Thailand, Indonesia, and Nigeria — where VAT is relatively low, ecommerce demand is growing, and you don’t need a local entity to charge and remit VAT.
• Ship directly to consumers without surprises in markets like Colombia, Perú, Philippines, UAE, Saudi Arabia, and Mexico, where de minimis thresholds are high. This is perfect for dropshipping, expanding marketplaces, or testing new categories.

As protectionist barriers rise in the global north, emerging markets offer the rare combination of scale, growth, and simplicity.