How U.S. Merchants Fail E.U. Consumers

U.S. merchants eyeing European expansion see 450 million consumers unified under common trade regulations. The reality is different. The European Union harmonizes cross-border commerce rules, but it doesn’t harmonize the people doing the buying.

This misunderstanding costs conversions in every country. Without payment after delivery, German shoppers bounce. Absent the French language, buyers in France lose trust. Parcel delivery lockers are critical for Polish consumers.

Yet U.S. merchants launch uniform “European” storefronts and wonder why conversion rates lag. The problem is they’re treating many distinct cultures as one.

• The European Union consists of 27 member countries and operates with 24 official languages.
• In 2023, 75% of Europeans made at least one online purchase.
• 86% of businesses selling online use their own website or app, while 45% also rely on marketplaces.

The E.U. consists of 27 member countries and 24 official languages.

One Europe, Many Markets

I’m the co-founder of a digital marketing agency in Poland. For more than a decade, we’ve assisted ecommerce brands and technology providers in positioning themselves across Europe. Here’s what sets the major markets apart.

Germany: Precision and proof required

Online shoppers in Germany are detail-oriented and risk-averse. They expect comprehensive product specifications, comparison tables, and transparent return policies. Germany consistently produces the highest return rates in Europe, particularly in fashion and electronics.

According to Stripe’s 2023 payment behavior study, 43% of German shoppers prefer payment on invoice after delivery, enabling them to receive and confirm products before paying, which aligns with their strong focus on security.

France: Language and brand identity first

French consumers emphasize brand storytelling and visual presentation, with language as a key trust signal. Research from the European Commission shows that most E.U. consumers prefer to browse and shop in their native language, and many avoid foreign-language sites altogether.

In France, this preference is even more pronounced: Studies reveal that three out of four consumers favor buying products presented in French, and most rarely (or never) complete purchases on English-only sites.

Moreover, French buyers gravitate toward culturally attuned sellers. They expect localized ecommerce experiences not just in wording but also in photography, tone, and native nuances.

Nordics: Digital sophistication meets sustainability

Consumers in Scandinavia are among Europe’s most digitally advanced. Mobile commerce is prominent, accounting for nearly 40% of sales by 2027. Buyers expect frictionless mobile experiences, quick checkout, and are generally willing to pay more for quality and convenience.

Sustainability is a priority. Shoppers seek details on sourcing, materials, and environmental impact rather than vague claims.

Payment preferences vary by country. Klarna remains dominant in Sweden; MobilePay is popular among Danish consumers, and Finnish buyers favor bank transfers.

Southern Europe: Price sensitivity and delivery focus

Shoppers in Spain, Italy, and Portugal are more price-sensitive. Promotional campaigns and limited-time offers typically perform well, as consumers compare prices closely before buying. They are also among the fastest E.U. adopters of mobile commerce.

Shipping expectations are key. A 2022 survey by Seven Senders, a Berlin-based logistics firm, found that many Italian shoppers tolerate higher shipping costs for guaranteed fast delivery. Hence clear, reliable delivery information is critical, particularly in Spain and Italy, with many first-time buyers expecting service transparency.

Central and Eastern Europe: Marketplaces and value seekers

Poland, Czechia, and Romania are among Europe’s fastest-growing ecommerce markets — the region collectively recorded a 15% increase in B2C turnover in 2023. Yet consumer behavior here differs sharply from Western Europe.

Domestic marketplaces shape much of Eastern Europe’s ecommerce landscape.

• Allegro dominates in Poland, generating €12.8 billion in gross merchandise value ($14.8 billion) in 2024 and capturing nearly half of the country’s online retail market.

• In Romania, eMAG plays a similar role with €1.3 billion in GMV ($1.5 billion), leading key categories such as electronics, fashion, appliances, and toys.

• In Czechia, Mall.cz (part of the Allegro Group) and Heureka are the most popular.

Unlike Western Europe, where Amazon is dominant, regional players drive ecommerce in Central and Eastern Europe.

CEE shoppers rely heavily on reviews and social proof, which makes established marketplaces — Allegro, eMAG, Mall.cz — a practical first step for new sellers before moving to standalone sites.

True Localization

True localization means adjusting the entire value proposition to match how consumers in each market shop, decide, and pay.

The E.U. opportunity for foreign merchants is enormous yet daunting. Partnering with a regional ecommerce consultant or local technology providers can help identify the right mix of payments, logistics, and platforms for each country.

Canada Still Works for U.S. Sellers

Cross-border ecommerce between the United States and Canada has rarely been more uncertain than in 2025. Nonetheless, for U.S. merchants, Canada remains an easy first step into international sales.

Canadian shoppers buy heavily from U.S. sites. But this year’s holiday shopping season is testing even experienced sellers. Tariffs, a postal strike, and shifting taxes have turned what should be a smooth northern route into a logistical puzzle.

Tariff Dust-Up

Many pundits have described recent trade relations as a war. Helaine Rich, the vice president of strategic sales and administration at ePost Global, an international shipping provider, was more tactful.

“The current administration really took a look at what countries are asking [American businesses] to pay when we’re shipping into their countries and what they’re charging as a premium on U.S. goods,” said Rich.

The result was a tariff for the United States that upset North-South relations. The back-and-forth trade negotiations included on-again, off-again reciprocal tariffs and surtaxes from the Canadian government — in some cases, up to 25%.

At peaks in the U.S.-Canada dispute, ecommerce “shipment volumes dropped quickly as tariffs rose and some Canadian consumers began avoiding U.S. brands,” Rich said.

Yet duties existed long before the recent dust-up.

Canadian Duties

“Nothing is more frustrating than thinking you paid for a product and then getting surprised at the door that you have to pay this, that, and the other duty,” said Rich.

Unfortunately, this is a common occurrence for Canadian shoppers buying from American ecommerce stores. Here are a few examples of what Canada typically adds.

• Duties. Based on the type of goods, their origin (including whether they qualify under the United States–Mexico–Canada free-trade agreement or other treaties), and classification (harmonized system code).

• GST. The Canadian goods and services tax applies to most imported goods, calculated on the Canadian-dollar value of goods plus duties.

• PST or HST. Depending on the destination province, the importer or consumer may also owe provincial sales tax (PST) or harmonized sales tax (HST), combining federal and provincial components.

Postal Strike

The final challenge, beyond a volatile trade environment and duties due, is getting a package delivered in Canada.

Rich noted that the Canadian Union of Postal Workers is again holding strikes during the holiday season, delaying most holiday shipments, as it did last year.

Canada Post is the nation’s primary last-mile delivery service. Thus sending shipments via the U.S. Postal Service or any other carrier that partners with Canada Post is a risk.

For instance, Walmart Marketplace does not allow Canada Post or any affiliated services. Sellers who try to circumvent Walmart’s restriction face suspension.

Opportunity Nonetheless

Despite tariffs, taxes, and strikes, Canada remains a significant growth market for U.S. ecommerce retailers.

Depending on the projection, total Canadian ecommerce sales will range from $40 billion USD to $43 billion in 2025. About 20% of those sales will go to American stores, making the Canadian market worth around $8 billion for the year. (In contrast, 2024 U.S. retail ecommerce sales were roughly $1.2 trillion.)

Canada offers U.S. merchants geographic proximity, familiar consumer behavior, and lesser competition. Plus, nearly all consumers speak English.

If a U.S.-based online store wants to expand internationally, Canada is a great place to start.

Selling to Canada

Success requires researching three factors: cost competitiveness, duty-paid pricing, and carrier contingencies.

Cost

Before marketing to Canadian shoppers, merchants should model the total landed cost — product, shipping, duties, and GST/HST — to ensure each sale is profitable, according to Rich at ePost Global.

This step includes identifying and understanding tariffs or product restrictions. Canada forbids the import of some products sold domestically in the United States.

Bottom line: Can a U.S. business competitively sell its products into Canada?

Duty-paid pricing

Duty-paid pricing is akin to free shipping.

Shipping fees create friction, prompting shoppers to abandon orders if too expensive. Ditto for import duties.

Free shipping offers remove that friction.

The equation is similar to “delivery duty paid.” If paying Canadian duties for customers increases sales volume enough to offset the cost and generate more profit, do it.

Carriers

Finally, no carrier is a good choice when it is experiencing a strike. Shipments will almost certainly encounter delays.

Have a contingency plan that uses carriers not impacted by the current Canadian strikes.

Digital Goods Stay Duty-Free

Unlike physical goods, software and digital downloads have long been exempt from duties and tariffs. Many nations, including the United States, want to keep it that way.

In October, the Trump administration secured new trade deals with Malaysia, Cambodia, and Thailand that included a call for a permanent end to tariffs and taxes on digital goods and online services.

The agreements reaffirm the United States’ long-standing position that digital commerce — software, streaming, cloud storage, and similar services — should flow freely across borders, untaxed and unrestricted.

While this policy benefits large technology companies like Amazon, Meta, and Google, it also supports thousands of small and mid-sized ecommerce firms that sell digital products.

Digital Trade Policy

The World Trade Organization’s moratorium on customs duties on electronic transmissions is at the heart of modern digital trade.

First adopted in 1998, the moratorium restricts member countries from charging customs duties on digital goods and services delivered over the internet. WTO members have extended it multiple times. It will expire in March 2026.

President Donald Trump with Malaysian Prime Minister Anwar Ibrahim. Source: The White House.

The Trump administration wants to make the moratorium permanent. In the new trade pacts, the U.S. secured commitments from Malaysia, Cambodia, and Thailand not to impose digital services taxes or discriminate against American providers. The agreement with Malaysia includes language for permanent extension of the WTO moratorium.

The U.S. is not alone. On November 6, 2025, a coalition of nations from Africa, the Caribbean, and the Pacific proposed yet another extension of the same agreement. Support for tariff-free digital trade has become a rare point of consensus in an otherwise divided global economy.

Digital Trade and Ecommerce

The moratorium is important for ecommerce businesses, as it affects the software they use and their digital products.

Without the tariff ban, duties could apply to:

• Software-as-a-service tools like BigCommerce or Adobe Creative Cloud,
• Digital downloads such as ebooks, sheet music, or stock photos,
• Streaming and cloud platforms like Netflix and Amazon Web Services.

The WTO rule has created an open digital marketplace, allowing small firms to reach global customers with minimal friction. Keeping it in place preserves the status quo.

If the moratorium were to lapse, governments could begin taxing digital transactions, such as a subscription to Shopify (Canada) or PrestaShop (France). Digital products such as online courses or downloadable sheet music might also face tariffs.

Physical Tariffs

While it continues to promote duty-free digital trade, the United States has recently closed a gaping tax loophole in physical commerce: the de minimis tariff exemption.

That rule, which allowed low-value imports into the United States duty-free, expired at the end of August 2025. Since then, some orders entering the country have been subject to customs duties and inspection.

For select U.S. retailers, the change has been welcome. These companies argue that the exemption gave foreign sellers an unfair edge by letting them ship cheap goods directly to U.S. consumers without paying import taxes or local fees.

China, for example, leveraged its controlled economy and demand for hard currency to gain a further ecommerce advantage — again, putting American retailers at a disadvantage.

A similar debate is emerging in Latin America. Speaking at a conference in Buenos Aires in November 2025, Juan Martín de la Serna, head of Mercado Libre Argentina, called for tighter regulations, e.g., tariffs, on low-cost Chinese goods.

“The influx of cheap, low-quality imports from China risks undermining small and medium-sized businesses,” de la Serna said.

Mexico, Chile, and Uruguay have already tightened import and tax rules on those shipments. These arguments echo the U.S. position.

Controlled Advantage

China’s hybrid economy is a blend of free markets and state control. While it has many drawbacks, the arrangement gives its exporters advantages in both manufacturing and ecommerce.

The Chinese Communist Party can direct credit, manage currency values, and subsidize key industries, from logistics to artificial intelligence.

These levers help Chinese sellers offer products at prices that independent retailers elsewhere find difficult to match.

Local governments often provide tax rebates and cheap loans to manufacturers that sell through cross-border platforms, while the central government encourages ecommerce exports as a source of hard currency.

This state-supported structure aids China’s ecommerce giants.

2 Policies

Many of the same imbalances that define the global trade of physical goods have surfaced in digital products.

Controlled economies can dominate digital markets by shaping access to data, funding domestic tech giants, and restricting foreign competition. In China, for example, strict data-localization rules keep Western platforms out while homegrown firms expand abroad.

Low wages and intense labor conditions extend beyond factories into the digital workforce, from content moderation and customer support to the new wave of generative AI data labeling.

Even artificial intelligence itself reflects global inequality. Chinese models trained on Western data are increasingly deployed by state-backed enterprises, reinforcing competitive differences.

Nonetheless, worldwide business is complex, so in a sense, the differences in U.S. policies toward physical and digital goods could serve as a policy test. Which philosophy, protectionism or unfettered access, proves the most successful to business and, importantly, to consumers?

Ecommerce after De Minimis Tariff Exemption

The aim of the 1930 U.S. Tariff Act was to eliminate low-cost imports from customs and duty processing, thereby saving money. Initially pegged at $1 per package, the so-called “de minimis” threshold gradually increased to $800. The exemption became crucial for cross-border dropshippers, fast-fashion brands, and other ecommerce sellers.

President Trump eliminated the de minimis exemption effective August 29, 2025. Most U.S.-bound shipments valued at $800 or less will incur applicable duties, taxes, fees, and other charges, although the change affected packages from China and Hong Kong as of May. The U.S. Postal Service, in collaboration with other domestic postal providers, has a six-month phase-in period.

President Trump eliminated the de minimis exemption effective August 29, 2025, although the change took effect in May for China and Hong Kong.

Nonetheless, the change represents a dramatic shift for ecommerce. For nearly a decade, cross-border sellers and platforms such as Shein and Temu leaned on the exemption to flood the U.S. with low-value packages.

Meanwhile, American retailers shipping to other countries paid tariffs, hired brokers, and navigated customs compliance. Now, with the exemption gone, the playing field looks different.

Some businesses will suffer due to import complexities and expenses, but others stand to gain.

Scope

The American de minimis rule had been unprecedented. Many countries have similar exemptions for relatively low-value imports, but none come close to an $800 ceiling.

European Union nations typically cap their customs duty at the equivalent of $175, but charge a value-added tax from the first penny. Canada’s exemptions for customs duties and taxes max out at $150 CAD, or approximately $100 USD. Mexico allows shipments of up to $50 USD for a de minimis value. China offers minimal exemptions, and most other countries peak at about $75.

America’s high exemption created an opportunity for foreign ecommerce businesses and some enterprising U.S.-based merchants.

According to the White House, the volume of shipments entering the U.S. duty-free rose from approximately 134 million packages in 2015 (when the limit was $200) to more than 1.36 billion last year.

An estimated 60% of these de minimis, duty-free packages entering the U.S. — hundreds of millions of parcels annually — originate from China.

Harm

The U.S. de minimis suspension will hurt three types of ecommerce companies:

• Dropshippers. Merchants that manufacture, warehouse, or acquire products offshore for direct, per-item importing will now have to pay standard duty and taxes. This group includes large sellers, such as Temu, as well as many small and retail arbitrage businesses utilizing AliExpress and DSers.

• Fast-fashion sellers. China’s Shein and similar brands that depend on producing rapidly trendy clothes could face relatively higher landed costs and, as a result, thinner margins.

• Small ecommerce retailers. The de minimis exemption applied to both direct-to-consumer sales and bulk orders so long as the total value was $800 or less. Thus merchants that place tiny minimum orders from suppliers could also be impacted.

The suspension does not prevent any of these businesses from operating or shipping to the United States, but it does change their economics and presumably increase prices for consumers on goods that were previously duty-free.

Benefit

The suspension is not universally harmful, however, as many American businesses stand to gain.

First and foremost, the suspension could be a boon for merchants and brands that source products in America. This is particularly true for small direct-to-consumer businesses that pay U.S. wages while competing with goods manufactured offshore in markets with extremely low labor costs.

The second group to benefit could be every domestic retailer that already pays import duties.

A retail chain with 15 stores, an ecommerce website, and a requisite marketplace seller account is already paying standard import duties when importing a container load of goods.

In some cases, these retailers had to compete with foreign sellers or arbitrage operations that could offer an identical item at a lower cost due to the de minimis exemption.

Outlook

President Trump suspended the de minimis treatment discussed here on July 30, 2025, by executive order; however, he might change his mind.

The Trump administration often uses trade policy as a form of leverage. If foreign governments such as China make concessions to the United States, the administration could restore or modify the exemption.

Regardless, the de minimis treatment would have ended permanently in 2027. Earlier this year, the U.S. Congress voted to kill the exemption for the vast majority of small imports. The new law appears to aim to close what lawmakers believed was a loophole that has harmed American manufacturers and consumers while benefiting drug traffickers.

The suspension is disruptive for some ecommerce sellers. Yet the industry has adapted before, through sales tax implementations, shipping disruptions, and pandemic-era supply chain crises. It will adapt again.

What began as a convenience rule in the 1930s grew into a key component of global ecommerce. The end of the de minimis exemption may mark the start of something new and promising for American ecommerce businesses.

Charts: European Views on U.S. Tariffs

YouGov is a U.K.-based research and analytics firm operating in Europe, North America, the Middle East, and Asia-Pacific. A recent YouGov survey (PDF) explores public opinion on tariffs across Western Europe.

YouGov surveyed 9,455 adults in March 2025 in the U.K. (2,155), France (1,002), Germany (2,196), Denmark (999), Sweden (1,011), Spain (1,061), and Italy (1,031).

The survey consisted of four questions, starting with, “If the U.S. were to place tariffs on E.U. goods imported to the U.S., would you support or oppose the E.U. responding by placing tariffs on American goods imported to the E.U.?”

Most respondents back retaliatory tariffs, with support highest in Denmark at 79%.

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Next, the survey asked, “How much impact, if any, do you think that the U.S. placing tariffs on E.U. goods imported to the U.S. would have on the E.U. economy?” and “the [country’s] economy?

Seventy-five percent of German respondents believe tariffs will have “a lot” or “significant” impact on their national economy.

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The final survey question addressed fairness: “Do you think the E.U. has been fair or unfair in its trade dealings with the U.S. in recent years?

Charts: Global Consumer Views on Tariffs

The Boston Consulting Group provides strategy and advisory services to enterprises worldwide. The firm’s occasional “Consumer Radar Survey” queries global shoppers to study their behaviors, preferences, and sentiments.

In February 2025, BCG surveyed 7,285 consumers in the U.S., the U.K., Germany, France, Japan, China, India, and Brazil, soliciting their views on tariffs.

Most surveyed consumers anticipate that tariffs will negatively impact them.

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According to the survey, a minority of consumers think their country will benefit from tariffs.

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In addition, consumers who support tariffs generally have a negative financial outlook.

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Moreover, no age-group majority supports tariffs. Millennials are the top supporters at 40% of respondents.

Q&A: Passport CEO Talks Tariffs

President Trump’s tariffs have merchants scrambling to gauge the impact on imports, exports, and overall cost. There’s no better authority to assess that impact than Alex Yancher. He’s the CEO and co-founder of Passport, a global provider of cross-border logistics, localization, and support for ecommerce sellers.

He and I recently spoke on the state of tariffs, the likely impact, and how merchants should react. The entire audio of that conversation is embedded below. The transcript is edited for clarity and length.

Practical Ecommerce: What’s the status of the Trump tariffs?

Alex Yancher: Let’s break it down by country, starting with China, which seems to be the focus of the Trump administration. Plus, it’s the only new tariff in effect. The president implemented a 10% tariff on all imports from China starting February 4. That’s 10% incremental, on top of the existing 39% tariff from the Biden administration.

For goods from Canada and Mexico, the president announced a 25% tariff but reversed course within a day or two. We’re waiting for more information from the administration, but it doesn’t look like those new tariffs will occur.

President Trump’s salacious post in mid-February about reciprocal tariffs, meaning like-for-like, adds more uncertainty. If one of our industries is subject to a 50% tariff from a country, he suggested reciprocating with an equivalent 50% tariff.

An adjacent development relevant to ecommerce is changes to the U.S. de minimis rules. “De minimis” refers to excluding tariffs for shipments valued below a certain amount, currently at $800. A tariff could be 1,000%, but it’s waived if the item is under $800. Any revision to that rule would be huge for ecommerce sellers.

However, the administration removed the de minimis and then reversed the decision. So it’s still intact. We’re hearing rumblings that Trump will remove it again, at least for China-made goods. A change would be a massive regulatory hurdle to monitor and enforce — likely costing more money to oversee than it generates. So stay tuned.

PEC: Practical Ecommerce has long encouraged free trade and cross-border collaboration. Nonetheless, what’s President Trump’s rationale for tariffs?

Yancher: It seems to fit into three buckets. One is national security and border integrity, including fentanyl-related issues. The second bucket is allegations of unfair, unbalanced trade. We can see that in our trade deficit numbers. We have a trade deficit with virtually every country. Trump doesn’t like that imbalance.

The third bucket is the MAGA, America-first position, putting U.S. workers and companies first — ahead of free trade principles, inflation, and so forth.

Those are the three rationales, more or less.

PEC: Your company, Passport, facilitates trade in 180-plus countries. Are the first two reasons — national security and unfair trade — legit?

Yancher: There’s something to be said about a porous border regarding people and packages. We’ve had bipartisan legislation on oversight of packages coming in, such as drugs and illicit paraphernalia. Most countries are ahead of us in collecting rigorous data and information on incoming goods.

Passport is an internationalization company, as you mentioned. We’re smack in the middle of data flow. The information we must pass to foreign governments is typically much more strict than what the U.S. requires. The U.S. and Australia are the only countries with a high de minimis.

Another aspect of national security is ensuring the supply of critical medical products, such as personal protective equipment during Covid. We don’t want to rely on another country for those items.

In terms of unfair trade, it’s hard to say. U.S. consumers benefit from having access to low-cost goods. U.S. prices are lower for the most part than any other country. That’s partly because we have low tariffs.

PEC: Let’s move on to the impact on ecommerce merchants. What’s your advice?

Yancher: You’re safe if you manufacture in the U.S. unless you import components. You’re likely cheering for the administration to compel countries to lower their tariffs and thus expand your market.

If you manufacture goods in China, there’s presumably a reason you do it since there are already tariffs involved. And now your goods have just become 10% more expensive. So what do you do? Is 10% that meaningful? Are there other suppliers? The answer is case-dependent. Certainly companies are re-evaluating their bill of materials and their supply chains.

Merchants that ship directly from China to consumers in the U.S. are in a tough spot. The de minimis is almost certainly going away, likely very quickly. I advise those sellers to keep going until the bitter end while also devising a plan B.

Otherwise, those direct-from-China sellers may have to pay the duty on the retail sales price. There are ways of structuring the setup to pay the duty on the cost of goods sold, the manufacturer’s cost. But it’s unclear and risky. We’re talking about a lot of money and a big structural expense. Sellers in that position must devise a plan now.

PEC: Tell us about Passport.

Yancher: We help ecommerce merchants go global irrespective of their size. We work with small and large brands. We help them with front-end internationalization — collecting the correct amount of duties and taxes, displaying local currencies, and regulatory and fiscal compliance.

We recently acquired Brand Access, a company that helps enterprises set up local operations in-country. We’ll handle the logistics, warehousing, and importer of record and their seller of record. We’ll equip their front-end consumer experience for a high conversion rate.

We’re at PassportGlobal.com. We’ve launched a new site, TrumpTradeTracker.com, to help the industry stay current on all the trade changes and cut through the noise.