The arrival of Donald Trump in the White House has ensured almost every day’s headlines over the past couple of months have emanated from Washington, but for e-commerce companies here in the UK, there is great significance in much of what is going on.
Alongside all the controversies over DOGE and the war in Ukraine, the growing trade war as Mr Trump seeks to impose tariffs on countries all over the world may have the greatest impact economically and on the fortunes of individual companies.
While Canada might attract the most attention amid its determination to resist calls to become the ‘51st state’, the EU is also being targeted and the UK is not entirely immune, as steel and aluminium from the UK have been subjected to a 25 per cent tariff.
What A Boycott Of American Goods Could Mean
It remains to be seen if there will be any retaliation from Britain, but amid general dismay at some of the policies and actions of the US administration, there may be a backlash that takes the form of consumers not buying American goods. This has already been seen in Canada, where the public has been shunning products from their southern neighbour.
Should British consumers start to respond the same way, this could mean UK-based e-commerce firms whose products compete with similar items made in the US will be at an advantage. A ‘buy British’ approach will mean more demand for things made here and not in the US.
Consequently, companies may need to produce more branded boxes and other packaging to ship extra goods to UK addresses. However, that is just the start; there may also be good reasons to alter the branding, not least to highlight the fact that these are British goods and that they are most definitely not from the USA.
An example of where this may happen is the whisky industry. In Mr Trump’s first term, when Britain was still in the EU, the Scotch whisky sector was caught up in a 25 per cent tariff on imported agricultural goods, impacting on exports to the US.
At present, there is no sign of a new tariff on Scotch, but the Scotch Whisky Association has been concerned about this possibility since last year, before Trump won the presidential election.
In such circumstances, it may be that Britons buying whisky online might increasingly demand UK whisky and not buy imported American brands.
New European Markets?
Of course, having more demand from the domestic market may be good news and while it may be that some goods end up not being shipped across the Atlantic because they have been hit by tariffs, there is the possibility that the UK and EU sign a better trade agreement than at present, drawn together politically and economically by US actions.
In such circumstances, it may be that British exports to the EU increase, although imports will as well.
Crucially, there is a need to make sure that the packaging is extremely good. It may be easy for firms to take their eye off the ball as the benefits of a drive to ‘buy British’ or ‘buy European’ draw in extra customers. But if care is not taken to ensure the packaging is secure and goods reach their destination without damage, this could be squandered.
Why Green Packaging Will Be Important
Using eco-friendly packaging is another way that firms may make a point in the direction of Mr Trump and his administration. His “drill baby, drill” approach to the energy sector is in line with his withdrawal (for the second time) from the Paris Climate Accord and UN Climate Fund.
Since Trump is no more favourable to the environment than he is to Canadian statehood, there is no better time for firms to draw a contrast between this and their own commitment to being green by using eco-friendly packaging such as shredded paper and recycled cardboard.
The way people buy and sell goods and services has changed significantly down the years, although Mr Trump, with his obsession with trade deficits and surpluses focused solely on manufactured goods, appears oblivious to this and determined to bend the world to his will based on an outdated economic philosophy.
Longer Term Consequences
It may be that the whole thing backfires terribly, costing US businesses dearly, pushing consumer prices up and steering America into a recession, at which point the policy will be abandoned or Trump will pay a huge electoral price in the Midterms. Consequently, the trade war can only last for so long before the ones who started it become the big loser.
However, if your ecommerce firm has made the most of the opportunities in the meantime with the help of attractive, stable and eco-friendly packaging, you may enjoy the benefits of lasting customer loyalty in a world where so few things are certain and stable anymore.
