Latest / Outside the Box with Asendia USA: The International e-Commerce Podcast / 24: Trade Whiplash: Adapting to Shifting Tariff Landscapes

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24: Trade Whiplash: Adapting to Shifting Tariff Landscapes · Outside the Box with Asendia USA: The International e-Commerce Podcast

• 0:00
  Yeah,
• 0:00
  I
• 0:00
  would
• 0:00
  say
• 0:01
  unfortunately
• 0:02
  the
• 0:02
  trade
• 0:02
  uncertainty
• 0:03
  is
• 0:03
  still
• 0:03
  out
• 0:03
  there.
• 0:03
  I
• 0:04
  mean
• 0:04
  you
• 0:04
  can
• 0:04
  see
• 0:04
  that
• 0:04
  on
• 0:05
  a
• 0:05
  weekly
• 0:05
  basis
• 0:06
  tariff
• 0:07
  rates
• 0:07
  are
• 0:07
  still
• 0:07
  moving
• 0:07
  across
• 0:08
  the
• 0:08
  border.
• 0:08
  Step
• 0:08
  into
• 0:09
  the
• 0:09
  future
• 0:09
  with
• 0:09
  shipping
• 0:10
  smart.
• 0:10
  Outside
• 0:11
  the
• 0:11
  box
• 0:11
  is
• 0:12
  where
• 0:12
  the
• 0:12
  journey
• 0:12
  starts.
• 0:13
  From
• 0:13
  borders
• 0:13
  to
• 0:13
  buyers,
• 0:14
  we
• 0:14
  break
• 0:14
  it
• 0:14
  down
• 0:14
  fast.
• 0:15
  Nick
• 0:15
  and
• 0:15
  Jason
• 0:16
  deliver
• 0:16
  knowledge
• 0:16
  that
• 0:17
  lasts.
• 0:17
  Insight,
• 0:18
  innovation.
• 0:18
  Wherever
• 0:19
  your
• 0:19
  brand
• 0:19
  goes,
• 0:20
  we'll
• 0:20
  guide
• 0:20
  your
• 0:21
  growth
• 0:21
  so
• 0:21
  your
• 0:21
  global
• 0:21
  reach
• 0:22
  flows.
• 0:22
  Tune
• 0:23
  in,
• 0:23
  lean
• 0:23
  in,
• 0:24
  let's
• 0:24
  unlock
• 0:24
  the
• 0:24
  way.
• 0:25
  Go
• 0:25
  outside
• 0:25
  the
• 0:26
  box
• 0:26
  with
• 0:26
  the
• 0:27
  USA.
• 0:27
  Welcome
• 0:28
  back
• 0:28
  to
• 0:28
  Outside
• 0:28
  the
• 0:29
  Box
• 0:29
  with
• 0:29
  Asendia
• 0:29
  USA
• 0:30
  podcast.
• 0:30
  Got
• 0:30
  my
• 0:31
  co
• 0:31
  host
• 0:31
  Jason
• 0:32
  Rowland
• 0:32
  here.
• 0:32
  Welcome
• 0:32
  back
• 0:32
  everybody.
• 0:33
  And
• 0:33
  a
• 0:34
  very
• 0:34
  special
• 0:34
  guest,
• 0:35
  Shane
• 0:35
  Bogdan,
• 0:36
  director
• 0:36
  of
• 0:36
  Cross
• 0:37
  border
• 0:37
  Sales
• 0:37
  at
• 0:37
  Avalara.
• 0:38
  Yes,
• 0:38
  thank
• 0:39
  you
• 0:39
  Nick.
• 0:39
  Thank
• 0:39
  you
• 0:39
  for
• 0:39
  joining
• 0:40
  Shane.
• 0:40
  Yeah,
• 0:41
  absolutely.
• 0:41
  Thanks
• 0:41
  for
• 0:41
  your
• 0:42
  guys
• 0:42
  partnership
• 0:42
  with
• 0:42
  Avalara.
• 0:43
  Absolutely.
• 0:44
  So
• 0:44
  the
• 0:44
  topic
• 0:44
  today
• 0:45
  for
• 0:45
  viewers
• 0:45
  and
• 0:46
  listeners,
• 0:46
  2025,
• 0:47
  tariff
• 0:47
  whiplash,
• 0:48
  volatility
• 0:49
  and
• 0:49
  de
• 0:49
  minimis
• 0:50
  changes.
• 0:50
  So
• 0:50
  this
• 0:50
  is
• 0:51
  going
• 0:51
  to
• 0:51
  be
• 0:51
  heavy
• 0:51
  and
• 0:52
  important.
• 0:53
  Make
• 0:53
  sure
• 0:53
  you
• 0:53
  stay
• 0:54
  with
• 0:54
  it.
• 0:54
  Shane,
• 0:55
  could
• 0:55
  you
• 0:55
  introduce
• 0:55
  yourself
• 0:56
  Avalara
• 0:56
  and
• 0:57
  then
• 0:57
  maybe
• 0:57
  your
• 0:57
  focus,
• 0:57
  what
• 0:58
  you
• 0:58
  focus
• 0:58
  on.
• 0:58
  Absolutely.
• 0:59
  And
• 0:59
  you
• 1:00
  know,
• 1:00
  first
• 1:00
  off,
• 1:00
  my
• 1:00
  name
• 1:00
  is
• 1:00
  Shane
• 1:01
  Bogdan.
• 1:01
  I'm
• 1:01
  our
• 1:01
  director
• 1:01
  of
• 1:02
  cross
• 1:02
  border
• 1:02
  sales
• 1:02
  at
• 1:03
  Avalar.
• 1:03
  You
• 1:04
  know,
• 1:04
  Avalara
• 1:05
  has
• 1:05
  been
• 1:05
  in
• 1:05
  the
• 1:06
  compliance
• 1:06
  space
• 1:07
  for
• 1:07
  22
• 1:07
  plus
• 1:08
  years.
• 1:08
  We
• 1:08
  want
• 1:09
  to
• 1:09
  make
• 1:09
  sure
• 1:09
  that
• 1:09
  compliance
• 1:10
  is
• 1:10
  easy
• 1:10
  for
• 1:10
  everybody.
• 1:11
  Everybody
• 1:11
  understands
• 1:12
  what's
• 1:12
  going
• 1:12
  on,
• 1:13
  especially
• 1:13
  staying
• 1:14
  attuned
• 1:14
  to
• 1:14
  what's
• 1:15
  been
• 1:15
  happening
• 1:15
  the
• 1:15
  past
• 1:16
  12
• 1:16
  months.
• 1:17
  It's
• 1:17
  also
• 1:17
  a
• 1:17
  growth
• 1:18
  arm
• 1:18
  for,
• 1:18
  you
• 1:19
  know,
• 1:19
  manufacturers,
• 1:20
  D2C.
• 1:21
  D2C
• 1:21
  brands.
• 1:22
  How
• 1:22
  do
• 1:22
  you
• 1:22
  continue
• 1:23
  to
• 1:23
  grow
• 1:23
  your
• 1:23
  brand
• 1:24
  and
• 1:24
  make
• 1:24
  it
• 1:25
  as
• 1:25
  seamless
• 1:26
  and
• 1:26
  transparent
• 1:26
  as
• 1:27
  if
• 1:27
  it's
• 1:27
  a
• 1:27
  domestic
• 1:27
  transaction
• 1:28
  as
• 1:28
  well?
• 1:28
  So
• 1:29
  I
• 1:29
  mean
• 1:29
  the
• 1:30
  past
• 1:30
  12
• 1:30
  months
• 1:30
  have
• 1:30
  been
• 1:31
  wild.
• 1:31
  We've
• 1:32
  been
• 1:32
  calling
• 1:32
  it
• 1:32
  the
• 1:33
  trade
• 1:33
  whiplash.
• 1:33
  Sure.
• 1:34
  So
• 1:34
  happy
• 1:34
  to
• 1:35
  dive
• 1:35
  in
• 1:35
  on
• 1:35
  that.
• 1:35
  Yeah.
• 1:36
  You
• 1:36
  know,
• 1:36
  so
• 1:37
  right
• 1:37
  in
• 1:37
  there.
• 1:38
  Right.
• 1:38
  So
• 1:38
  there's
• 1:38
  a
• 1:38
  little
• 1:39
  bit
• 1:39
  of
• 1:39
  this
• 1:39
  2025
• 1:40
  hangover
• 1:40
  that
• 1:40
  we're
• 1:40
  still
• 1:40
  kind
• 1:41
  of
• 1:41
  experiencing
• 1:41
  and
• 1:42
  the
• 1:42
  trauma
• 1:42
  of
• 1:42
  what
• 1:43
  the
• 1:43
  industry
• 1:43
  kind
• 1:43
  of
• 1:43
  experienced
• 1:44
  with
• 1:46
  those
• 1:46
  tariffs.
• 1:47
  So
• 1:47
  how
• 1:47
  did
• 1:47
  Avalara
• 1:48
  stand
• 1:48
  out
• 1:48
  there?
• 1:49
  What
• 1:49
  did
• 1:49
  you
• 1:49
  guys
• 1:50
  handle?
• 1:50
  Well
• 1:50
  listen,
• 1:50
  we
• 1:51
  were
• 1:51
  again,
• 1:51
  you
• 1:51
  know,
• 1:52
  we've
• 1:52
  been
• 1:52
  in
• 1:52
  the
• 1:52
  compliance
• 1:53
  space
• 1:53
  over
• 1:53
  20
• 1:53
  plus
• 1:54
  years
• 1:54
  and
• 1:54
  across
• 1:54
  border
• 1:55
  it's
• 1:55
  been
• 1:55
  no
• 1:55
  different.
• 1:55
  But
• 1:56
  you
• 1:56
  know,
• 1:56
  with
• 1:56
  this
• 1:57
  really
• 1:57
  started
• 1:57
  at
• 1:58
  the
• 1:58
  end
• 1:58
  of
• 1:58
  January
• 1:58
  last
• 1:59
  year.
• 1:59
  There
• 1:59
  were
• 1:59
  the
• 1:59
  three
• 2:00
  markets
• 2:00
  that
• 2:00
  were
• 2:00
  in
• 2:00
  the
• 2:00
  crosshair.
• 2:01
  Sara
• 2:01
  had
• 2:01
  Canada,
• 2:02
  Mexico
• 2:02
  and
• 2:03
  China.
• 2:03
  And
• 2:03
  it
• 2:04
  was
• 2:04
  all
• 2:04
  primarily
• 2:04
  about
• 2:04
  okay,
• 2:05
  well
• 2:05
  there's
• 2:05
  de
• 2:05
  minimis
• 2:06
  parcels,
• 2:06
  the
• 2:06
  whole
• 2:06
  safety
• 2:07
  component
• 2:07
  of
• 2:07
  that
• 2:08
  fentanyl
• 2:08
  coming
• 2:09
  over.
• 2:09
  Then
• 2:09
  it
• 2:09
  was
• 2:10
  also
• 2:10
  about
• 2:10
  domestic
• 2:11
  domestic
• 2:12
  manufacturing,
• 2:12
  having
• 2:13
  businesses
• 2:14
  and
• 2:14
  helping
• 2:14
  out
• 2:14
  the
• 2:15
  Retailers
• 2:15
  on
• 2:15
  that
• 2:15
  front,
• 2:16
  you
• 2:16
  know,
• 2:17
  you
• 2:17
  guys
• 2:17
  probably
• 2:17
  saw
• 2:18
  then
• 2:18
  April
• 2:19
  comes
• 2:19
  around.
• 2:19
  It's
• 2:19
  no
• 2:20
  longer
• 2:20
  just
• 2:20
  those
• 2:21
  three
• 2:21
  that
• 2:21
  are
• 2:21
  in
• 2:21
  the
• 2:21
  crosshairs,
• 2:22
  it's
• 2:22
  now
• 2:22
  the
• 2:22
  rest
• 2:23
  of
• 2:23
  the
• 2:23
  globe
• 2:23
  here.
• 2:24
  So
• 2:25
  there
• 2:25
  were
• 2:25
  a
• 2:25
  multitude
• 2:26
  of
• 2:26
  changes
• 2:27
  then
• 2:27
  from
• 2:27
  you
• 2:28
  know,
• 2:28
  from
• 2:28
  February
• 2:28
  to
• 2:29
  March
• 2:29
  when
• 2:29
  the
• 2:29
  Canada,
• 2:30
  China,
• 2:30
  Mexico
• 2:30
  came
• 2:31
  into
• 2:31
  play.
• 2:32
  April
• 2:32
  came
• 2:32
  into
• 2:32
  play
• 2:32
  with
• 2:33
  Liberation
• 2:33
  Day.
• 2:33
  Throughout
• 2:34
  that
• 2:34
  there
• 2:34
  were,
• 2:34
  you
• 2:35
  know,
• 2:38
  15%
• 2:39
  to
• 2:39
  over
• 2:39
  50%
• 2:40
  tariffs
• 2:40
  enacted
• 2:41
  across
• 2:41
  a
• 2:42
  multitude
• 2:42
  of
• 2:42
  countries
• 2:43
  out
• 2:43
  there.
• 2:43
  Yep.
• 2:44
  And
• 2:44
  then
• 2:44
  you
• 2:44
  know
• 2:45
  there
• 2:45
  was
• 2:45
  that
• 2:45
  negotiation
• 2:46
  period
• 2:46
  within
• 2:46
  there.
• 2:47
  So
• 2:47
  on
• 2:47
  averler
• 2:48
  side
• 2:48
  we
• 2:48
  have
• 2:49
  a
• 2:49
  team
• 2:49
  of
• 2:49
  over
• 2:49
  250
• 2:50
  plus
• 2:51
  trade
• 2:52
  content
• 2:52
  specialists
• 2:53
  that
• 2:53
  are
• 2:53
  monitoring
• 2:54
  all
• 2:54
  these
• 2:54
  things
• 2:54
  behind
• 2:55
  the
• 2:55
  scenes.
• 2:55
  So
• 2:56
  businesses
• 2:56
  will
• 2:56
  come
• 2:56
  to
• 2:57
  us
• 2:57
  and
• 2:57
  they
• 2:57
  go,
• 2:57
  we
• 2:57
  don't
• 2:57
  know
• 2:57
  what's
• 2:58
  going
• 2:58
  on.
• 2:58
  Well,
• 2:58
  don't
• 2:58
  worry
• 2:58
  about
• 2:58
  it,
• 2:59
  we'll
• 2:59
  handle
• 2:59
  all
• 2:59
  that
• 3:00
  for
• 3:00
  you.
• 3:00
  Because
• 3:00
  we
• 3:00
  have
• 3:01
  a
• 3:01
  team
• 3:01
  that's
• 3:01
  actively
• 3:01
  doing
• 3:02
  that
• 3:02
  and
• 3:02
  I
• 3:03
  do
• 3:03
  have
• 3:03
  to
• 3:03
  do
• 3:03
  a
• 3:03
  shameless
• 3:03
  plug
• 3:04
  here
• 3:04
  because
• 3:04
  it's
• 3:05
  all
• 3:05
  right,
• 3:05
  you
• 3:05
  know,
• 3:05
  it's
• 3:06
  a
• 3:06
  non
• 3:06
  sales
• 3:06
  plug
• 3:07
  but
• 3:07
  every
• 3:07
  Tuesday
• 3:08
  since
• 3:08
  the
• 3:08
  beginning
• 3:08
  of
• 3:08
  March
• 3:09
  we've
• 3:09
  been
• 3:09
  calling
• 3:10
  it
• 3:10
  Trade
• 3:10
  and
• 3:10
  Tariff
• 3:11
  Tuesday.
• 3:11
  So
• 3:11
  myself,
• 3:12
  our
• 3:12
  cross
• 3:12
  border
• 3:13
  GM
• 3:13
  have
• 3:13
  been
• 3:13
  getting
• 3:14
  on,
• 3:14
  doing
• 3:14
  webinars
• 3:15
  and
• 3:15
  basically
• 3:15
  helping
• 3:16
  educate
• 3:17
  everybody.
• 3:18
  What's
• 3:18
  been
• 3:18
  going
• 3:18
  on?
• 3:18
  Yeah,
• 3:19
  it's
• 3:19
  a
• 3:19
  topic
• 3:19
  that
• 3:19
  a
• 3:19
  lot
• 3:20
  of
• 3:20
  companies
• 3:20
  got
• 3:20
  away
• 3:21
  with
• 3:21
  not
• 3:21
  having
• 3:21
  to
• 3:22
  care
• 3:22
  about.
• 3:23
  All
• 3:23
  of
• 3:23
  a
• 3:23
  sudden
• 3:24
  last
• 3:24
  year
• 3:24
  it
• 3:24
  became
• 3:25
  such
• 3:25
  an
• 3:26
  important
• 3:26
  topic
• 3:26
  that
• 3:26
  it
• 3:27
  was
• 3:27
  affecting
• 3:28
  bottom
• 3:28
  lines
• 3:28
  on
• 3:29
  companies.
• 3:29
  It
• 3:29
  was
• 3:29
  affecting
• 3:30
  everything.
• 3:30
  Right.
• 3:31
  So
• 3:31
  everything
• 3:32
  used
• 3:32
  to
• 3:32
  be
• 3:32
  able
• 3:32
  to
• 3:32
  go
• 3:33
  under
• 3:33
  the
• 3:33
  radar
• 3:33
  now
• 3:34
  upfront.
• 3:35
  Oh
• 3:35
  yeah.
• 3:35
  So
• 3:36
  many
• 3:36
  retailers,
• 3:36
  international
• 3:37
  shippers.
• 3:37
  Well
• 3:38
  and
• 3:38
  decision
• 3:38
  making
• 3:39
  just
• 3:39
  went
• 3:39
  out
• 3:39
  the
• 3:39
  window.
• 3:40
  100
• 3:41
  I
• 3:41
  was
• 3:41
  like,
• 3:41
  I
• 3:42
  try
• 3:42
  to,
• 3:42
  if
• 3:43
  you
• 3:43
  get
• 3:43
  my
• 3:43
  demeanor
• 3:44
  changes
• 3:44
  so
• 3:45
  aggressively
• 3:45
  negative
• 3:46
  when
• 3:46
  I
• 3:46
  think
• 3:46
  about
• 3:46
  2025
• 3:47
  I
• 3:47
  have
• 3:47
  to
• 3:48
  like
• 3:48
  really
• 3:48
  peel
• 3:49
  that
• 3:49
  back.
• 3:49
  But
• 3:50
  the,
• 3:51
  the
• 3:51
  stall
• 3:52
  decision
• 3:52
  making
• 3:53
  from
• 3:53
  the
• 3:54
  significant
• 3:54
  uncertainty
• 3:55
  is,
• 3:57
  I
• 3:57
  mean
• 3:57
  it
• 3:57
  impactful.
• 3:58
  I
• 3:58
  mean
• 3:59
  it
• 3:59
  was
• 3:59
  tough
• 3:59
  to
• 3:59
  admit.
• 3:59
  To
• 3:59
  things
• 4:00
  massively
• 4:01
  because
• 4:01
  you
• 4:01
  don't
• 4:01
  know
• 4:01
  what
• 4:01
  you're
• 4:01
  committing.
• 4:02
  Well
• 4:02
  so
• 4:02
  it's,
• 4:03
  it's
• 4:03
  funny.
• 4:03
  So
• 4:04
  when
• 4:04
  we
• 4:04
  first
• 4:04
  started
• 4:05
  that,
• 4:05
  you
• 4:05
  know,
• 4:06
  and
• 4:06
  Tariff
• 4:06
  Tuesdays
• 4:07
  we've
• 4:07
  always
• 4:08
  been
• 4:08
  asking
• 4:09
  questions
• 4:09
  of
• 4:09
  what
• 4:09
  are
• 4:10
  you
• 4:10
  going
• 4:10
  to
• 4:10
  do
• 4:11
  about
• 4:11
  the
• 4:11
  current
• 4:11
  trade
• 4:12
  uncertainty?
• 4:12
  And
• 4:12
  we
• 4:12
  would,
• 4:12
  you
• 4:13
  know,
• 4:13
  put
• 4:13
  up
• 4:13
  five
• 4:14
  questions
• 4:14
  or
• 4:14
  so
• 4:15
  and
• 4:15
  the
• 4:15
  first
• 4:15
  one
• 4:16
  being
• 4:16
  I
• 4:16
  don't
• 4:16
  know
• 4:16
  yet
• 4:16
  or
• 4:17
  we're
• 4:17
  looking
• 4:17
  at
• 4:17
  trade
• 4:18
  technology
• 4:18
  partners,
• 4:19
  we're
• 4:20
  redistributing
• 4:21
  our
• 4:21
  manufacturing,
• 4:22
  etc.
• 4:23
  For
• 4:23
  the
• 4:23
  first
• 4:23
  eight
• 4:24
  months
• 4:24
  everybody,
• 4:25
  a
• 4:25
  majority
• 4:25
  of
• 4:25
  the
• 4:26
  folks
• 4:26
  would
• 4:26
  always
• 4:26
  just
• 4:27
  answer,
• 4:27
  I
• 4:27
  don't
• 4:27
  know.
• 4:27
  Everybody
• 4:28
  was
• 4:28
  in
• 4:28
  a
• 4:28
  complete
• 4:29
  eight
• 4:29
  months
• 4:29
  frozen.
• 4:30
  Everybody
• 4:31
  was
• 4:31
  frozen.
• 4:32
  In
• 4:32
  terms
• 4:32
  of
• 4:32
  what
• 4:32
  do
• 4:32
  we
• 4:33
  do
• 4:33
  because
• 4:34
  goes
• 4:34
  back
• 4:34
  into
• 4:34
  the
• 4:34
  term
• 4:35
  whiplash
• 4:35
  of
• 4:36
  okay,
• 4:36
  tariffs
• 4:36
  are
• 4:36
  on
• 4:36
  one
• 4:37
  day,
• 4:37
  well
• 4:37
  next
• 4:37
  day
• 4:37
  they
• 4:38
  may
• 4:38
  not
• 4:38
  be
• 4:38
  gone.
• 4:39
  And
• 4:39
  you
• 4:39
  know,
• 4:39
  everybody
• 4:40
  kind
• 4:40
  of
• 4:40
  saw
• 4:40
  that.
• 4:40
  So
• 4:41
  it
• 4:42
  created
• 4:42
  some,
• 4:42
  some
• 4:43
  paralysis
• 4:43
  in
• 4:43
  terms
• 4:44
  of
• 4:44
  any
• 4:44
  sort
• 4:44
  of
• 4:44
  decision
• 4:44
  making
• 4:45
  on
• 4:45
  that
• 4:45
  front.
• 4:45
  We're
• 4:46
  going
• 4:46
  to
• 4:46
  move
• 4:46
  on
• 4:46
  from
• 4:46
  20
• 4:47
  because
• 4:47
  25
• 4:48
  was.
• 4:48
  We're
• 4:48
  done
• 4:48
  with
• 4:48
  it.
• 4:49
  Okay
• 4:49
  people,
• 4:49
  we
• 4:50
  are
• 4:50
  done.
• 4:50
  So,
• 4:51
  so
• 4:51
  let's
• 4:51
  move
• 4:51
  into
• 4:52
  20,
• 4:53
  26.
• 4:53
  So
• 4:54
  if
• 4:54
  you
• 4:54
  could
• 4:55
  just
• 4:55
  give
• 4:55
  us
• 4:55
  a
• 4:55
  brief,
• 4:56
  give
• 4:56
  us
• 4:56
  the
• 4:56
  current
• 4:56
  state
• 4:57
  of
• 4:57
  tariff
• 4:57
  changes,
• 4:58
  where
• 4:58
  things
• 4:58
  sit
• 4:59
  today.
• 4:59
  What
• 5:00
  does
• 5:00
  it
• 5:00
  look
• 5:00
  like
• 5:00
  right
• 5:00
  now?
• 5:01
  Yeah,
• 5:01
  I
• 5:01
  would
• 5:01
  say
• 5:02
  unfortunately
• 5:03
  the
• 5:03
  trade
• 5:03
  uncertainty
• 5:04
  is
• 5:04
  still
• 5:04
  out
• 5:04
  there.
• 5:05
  I
• 5:05
  mean
• 5:05
  you
• 5:05
  can
• 5:05
  see
• 5:05
  that
• 5:05
  on
• 5:06
  a
• 5:06
  weekly
• 5:06
  basis
• 5:07
  tariff
• 5:08
  rates
• 5:08
  are
• 5:08
  still
• 5:08
  moving
• 5:08
  across
• 5:09
  the
• 5:09
  board.
• 5:09
  I
• 5:09
  think
• 5:09
  last
• 5:10
  week
• 5:10
  what
• 5:10
  India
• 5:10
  went
• 5:11
  from
• 5:11
  100%
• 5:12
  down
• 5:12
  to
• 5:12
  18%.
• 5:13
  Bangladesh
• 5:14
  I
• 5:14
  think
• 5:14
  just
• 5:14
  went
• 5:14
  from
• 5:15
  20
• 5:15
  to
• 5:15
  19.
• 5:16
  Taiwan
• 5:17
  just
• 5:17
  dropped.
• 5:18
  So
• 5:18
  there's
• 5:18
  continue.
• 5:19
  And
• 5:19
  there's
• 5:19
  also
• 5:20
  continuing
• 5:20
  threats
• 5:20
  that
• 5:21
  are
• 5:21
  continuing
• 5:21
  to
• 5:21
  be
• 5:21
  published
• 5:22
  out
• 5:22
  there.
• 5:22
  There's
• 5:22
  not
• 5:22
  going
• 5:22
  to
• 5:23
  be
• 5:23
  any
• 5:23
  stop
• 5:23
  to
• 5:23
  those
• 5:23
  kinds
• 5:24
  of.
• 5:24
  Yeah,
• 5:24
  going
• 5:25
  forward
• 5:25
  it's
• 5:25
  going
• 5:25
  to
• 5:25
  continue.
• 5:26
  I
• 5:26
  guess
• 5:26
  though,
• 5:26
  if
• 5:27
  we
• 5:27
  think
• 5:28
  about
• 5:28
  our
• 5:28
  market.
• 5:28
  Right.
• 5:29
  So.
• 5:29
  So
• 5:29
  we're
• 5:30
  here
• 5:30
  in
• 5:30
  the
• 5:30
  United
• 5:30
  States.
• 5:31
  When
• 5:32
  you
• 5:32
  look
• 5:32
  at
• 5:32
  Canada,
• 5:33
  UK
• 5:34
  and
• 5:34
  Australia,
• 5:35
  where
• 5:35
  do
• 5:36
  things
• 5:36
  sit
• 5:36
  today?
• 5:37
  Yeah,
• 5:38
  Canada,
• 5:38
  Australia
• 5:39
  and
• 5:39
  uk.
• 5:39
  I
• 5:39
  mean,
• 5:39
  I
• 5:40
  think
• 5:40
  the
• 5:40
  biggest
• 5:40
  thing
• 5:40
  between
• 5:41
  Canada
• 5:42
  right
• 5:43
  now
• 5:43
  is
• 5:43
  what
• 5:43
  is
• 5:43
  the
• 5:44
  renegotiation
• 5:45
  of
• 5:45
  usmca?
• 5:46
  Yeah,
• 5:46
  that's
• 5:47
  a
• 5:47
  big
• 5:47
  thing
• 5:47
  right
• 5:47
  now.
• 5:48
  Is
• 5:48
  that
• 5:48
  just
• 5:49
  going
• 5:49
  to
• 5:49
  get
• 5:49
  pushed
• 5:50
  or
• 5:50
  is
• 5:50
  something
• 5:51
  else
• 5:51
  going
• 5:51
  to
• 5:51
  be
• 5:51
  happening
• 5:52
  from
• 5:52
  an
• 5:52
  individual,
• 5:54
  the
• 5:54
  standpoint
• 5:54
  between
• 5:55
  all
• 5:55
  three
• 5:55
  markets
• 5:56
  on
• 5:56
  what's
• 5:57
  happening
• 5:57
  on
• 5:57
  that
• 5:57
  front
• 5:58
  in
• 5:59
  relation
• 5:59
  to
• 5:59
  the
• 5:59
  uk?
• 6:01
  I,
• 6:02
  we're
• 6:02
  going
• 6:02
  to
• 6:02
  start
• 6:03
  talking
• 6:03
  along
• 6:03
  the
• 6:03
  lines
• 6:04
  of
• 6:04
  not
• 6:04
  the
• 6:04
  segue
• 6:05
  into
• 6:05
  the
• 6:05
  de
• 6:05
  minimis
• 6:06
  factor,
• 6:06
  but
• 6:06
  the
• 6:06
  UK
• 6:07
  is
• 6:07
  one
• 6:07
  of
• 6:07
  the
• 6:07
  ones
• 6:07
  that
• 6:08
  are
• 6:08
  now
• 6:08
  going
• 6:08
  to
• 6:08
  start
• 6:08
  talking
• 6:09
  about
• 6:09
  by
• 6:10
  2028,
• 6:11
  I
• 6:11
  believe,
• 6:12
  removing
• 6:12
  de
• 6:13
  minimis
• 6:13
  on
• 6:13
  their,
• 6:13
  their
• 6:14
  front.
• 6:14
  So.
• 6:14
  Sure.
• 6:15
  You
• 6:15
  know,
• 6:16
  I
• 6:16
  don't
• 6:16
  know
• 6:16
  if
• 6:16
  you
• 6:16
  want
• 6:16
  to
• 6:17
  take
• 6:17
  a
• 6:17
  step
• 6:17
  back.
• 6:20
  UK
• 6:21
  is
• 6:21
  going
• 6:21
  through
• 6:21
  with
• 6:21
  the
• 6:21
  de
• 6:22
  minimis
• 6:22
  right
• 6:22
  now
• 6:22
  and
• 6:23
  the
• 6:23
  kind
• 6:23
  of
• 6:23
  implementation
• 6:24
  of
• 6:24
  that
• 6:25
  3
• 6:25
  Euro,
• 6:25
  2
• 6:26
  Euro
• 6:26
  fee
• 6:26
  for
• 6:27
  HS
• 6:28
  line
• 6:28
  item
• 6:28
  and
• 6:29
  then,
• 6:29
  you
• 6:29
  know,
• 6:30
  processing
• 6:30
  extra,
• 6:30
  extra
• 6:31
  fees
• 6:31
  that
• 6:31
  are
• 6:31
  coming
• 6:31
  all.
• 6:32
  So
• 6:32
  what
• 6:32
  is,
• 6:33
  what
• 6:33
  does
• 6:33
  that
• 6:33
  look
• 6:33
  like
• 6:33
  for
• 6:34
  you
• 6:34
  guys
• 6:34
  and
• 6:34
  what's
• 6:34
  the
• 6:34
  impact?
• 6:35
  Yeah,
• 6:35
  and
• 6:35
  I
• 6:36
  think
• 6:36
  we
• 6:36
  got
• 6:36
  to
• 6:36
  take
• 6:36
  a
• 6:36
  step
• 6:37
  back
• 6:37
  too
• 6:37
  in
• 6:37
  terms
• 6:37
  of
• 6:37
  what
• 6:38
  happened
• 6:38
  in
• 6:38
  the
• 6:38
  US
• 6:38
  last
• 6:39
  year
• 6:39
  around
• 6:39
  de
• 6:39
  minimis.
• 6:40
  Because
• 6:40
  in
• 6:40
  May,
• 6:42
  you
• 6:42
  know,
• 6:43
  I
• 6:43
  always
• 6:43
  throw
• 6:44
  these
• 6:44
  stats
• 6:44
  out
• 6:44
  there.
• 6:45
  De
• 6:45
  minimis.
• 6:45
  I
• 6:46
  love
• 6:46
  stats.
• 6:46
  Yeah.
• 6:47
  In
• 6:47
  2015,
• 6:47
  the
• 6:47
  amount
• 6:48
  of
• 6:48
  the
• 6:48
  parcels
• 6:49
  under
• 6:49
  the
• 6:49
  $800
• 6:50
  de
• 6:50
  minimis
• 6:50
  value,
• 6:51
  the
• 6:51
  threshold
• 6:51
  at
• 6:51
  which
• 6:52
  good
• 6:52
  are
• 6:53
  declared
• 6:53
  Duty
• 6:54
  Free
• 6:54
  was
• 6:54
  125
• 6:55
  million.
• 6:56
  In
• 6:57
  2024
• 6:58
  it
• 6:58
  was
• 6:58
  1.36
• 6:59
  billion.
• 7:00
  So
• 7:00
  this
• 7:00
  was
• 7:00
  really
• 7:01
  a
• 7:01
  bipartisan
• 7:02
  effort
• 7:03
  to
• 7:03
  stop
• 7:03
  and
• 7:04
  limit
• 7:04
  the
• 7:04
  inflow
• 7:05
  of
• 7:05
  these
• 7:05
  small
• 7:05
  value
• 7:06
  parcels
• 7:06
  coming
• 7:06
  into
• 7:07
  the
• 7:07
  United
• 7:07
  States.
• 7:07
  Okay,
• 7:08
  you
• 7:08
  say
• 7:08
  that
• 7:08
  again.
• 7:08
  Yeah.
• 7:09
  125
• 7:09
  in
• 7:10
  2015.
• 7:11
  125
• 7:11
  million
• 7:13
  m.
• 7:13
  Yup.
• 7:14
  125
• 7:14
  million
• 7:15
  in
• 7:15
  2015.
• 7:16
  And
• 7:17
  then
• 7:17
  in
• 7:17
  2024
• 7:18
  it
• 7:18
  was
• 7:18
  1.36
• 7:20
  billion.
• 7:20
  They
• 7:20
  opened
• 7:21
  up
• 7:21
  a
• 7:21
  umbrella
• 7:22
  and
• 7:22
  captured
• 7:23
  a
• 7:24
  vast
• 7:24
  amount
• 7:25
  of
• 7:25
  material
• 7:25
  that
• 7:25
  was
• 7:25
  not
• 7:26
  being
• 7:26
  captured.
• 7:26
  Yeah.
• 7:27
  And
• 7:27
  Covid
• 7:27
  played
• 7:27
  into
• 7:28
  it
• 7:28
  the,
• 7:28
  the
• 7:28
  rise
• 7:29
  of
• 7:29
  online,
• 7:29
  you
• 7:30
  know,
• 7:30
  Chinese
• 7:30
  foreign
• 7:31
  marketplaces
• 7:31
  came
• 7:32
  into
• 7:32
  effect
• 7:32
  there.
• 7:33
  It's
• 7:34
  a
• 7:34
  staggering
• 7:35
  difference.
• 7:35
  Yeah.
• 7:35
  And
• 7:36
  that's
• 7:36
  really
• 7:36
  why
• 7:36
  also
• 7:37
  at
• 7:37
  the
• 7:37
  beginning
• 7:38
  those
• 7:38
  three
• 7:38
  countries
• 7:38
  were
• 7:38
  really
• 7:39
  in
• 7:39
  the
• 7:39
  crosshairs,
• 7:39
  specifically
• 7:40
  China
• 7:40
  as
• 7:40
  well.
• 7:41
  About
• 7:41
  60%
• 7:41
  of
• 7:42
  those
• 7:42
  parcels
• 7:42
  were
• 7:42
  coming
• 7:42
  in.
• 7:43
  I
• 7:43
  think
• 7:43
  anybody
• 7:44
  disagreed
• 7:44
  and
• 7:44
  we're
• 7:45
  not
• 7:45
  going
• 7:45
  to
• 7:45
  get
• 7:45
  into
• 7:45
  opinions
• 7:46
  here,
• 7:46
  but
• 7:47
  with
• 7:47
  the
• 7:47
  fact
• 7:47
  that
• 7:48
  for,
• 7:48
  let's
• 7:49
  say
• 7:49
  US
• 7:50
  or
• 7:50
  native,
• 7:51
  we'll
• 7:51
  call
• 7:51
  it
• 7:51
  native
• 7:52
  based
• 7:52
  brands,
• 7:53
  shippers,
• 7:53
  that
• 7:54
  the,
• 7:54
  the
• 7:55
  low
• 7:55
  value
• 7:55
  Chinese
• 7:56
  goods
• 7:56
  were
• 7:56
  not
• 7:56
  an
• 7:56
  issue.
• 7:57
  Oh,
• 7:57
  I
• 7:57
  think
• 7:58
  everybody
• 7:58
  could
• 7:58
  agree
• 7:58
  that
• 7:59
  that's
• 7:59
  an
• 7:59
  issue.
• 8:00
  Absolutely.
• 8:01
  I
• 8:02
  think
• 8:02
  maybe
• 8:02
  we
• 8:02
  could
• 8:02
  also
• 8:03
  agree
• 8:03
  that
• 8:03
  the
• 8:03
  whiplash
• 8:04
  that
• 8:05
  happened
• 8:06
  last
• 8:06
  year
• 8:06
  was
• 8:07
  also
• 8:07
  created
• 8:08
  some
• 8:08
  significant
• 8:09
  uncertainty
• 8:09
  and
• 8:09
  issues
• 8:10
  as
• 8:10
  well.
• 8:11
  All
• 8:12
  right,
• 8:12
  let's
• 8:12
  go
• 8:12
  back
• 8:13
  to,
• 8:13
  let's
• 8:13
  talk
• 8:13
  about
• 8:13
  the
• 8:14
  EU
• 8:14
  though.
• 8:14
  Yeah.
• 8:14
  So
• 8:15
  we
• 8:15
  got
• 8:15
  a
• 8:15
  big
• 8:15
  thing
• 8:16
  coming
• 8:16
  up
• 8:16
  this
• 8:16
  summer.
• 8:17
  Yeah,
• 8:17
  exactly.
• 8:18
  And
• 8:18
  I,
• 8:19
  you
• 8:19
  know,
• 8:19
  we
• 8:19
  removed
• 8:20
  it.
• 8:20
  The
• 8:20
  US
• 8:20
  removed
• 8:21
  it
• 8:21
  in
• 8:21
  May.
• 8:22
  Then
• 8:22
  they,
• 8:23
  you
• 8:23
  know,
• 8:23
  on
• 8:23
  all
• 8:23
  countries,
• 8:24
  August
• 8:25
  29,
• 8:25
  the
• 8:25
  US
• 8:26
  said,
• 8:26
  okay,
• 8:26
  we're
• 8:26
  removing
• 8:27
  de
• 8:27
  minimis
• 8:27
  for
• 8:28
  all
• 8:28
  markets
• 8:28
  coming
• 8:29
  into
• 8:29
  imports
• 8:29
  coming
• 8:29
  to
• 8:29
  the
• 8:30
  US
• 8:30
  under
• 8:30
  de
• 8:30
  minimis.
• 8:30
  And
• 8:31
  now
• 8:32
  other
• 8:32
  markets
• 8:32
  are
• 8:32
  keep,
• 8:33
  are,
• 8:33
  are
• 8:33
  looking
• 8:33
  at
• 8:33
  this
• 8:34
  as
• 8:34
  well
• 8:34
  and
• 8:34
  they're
• 8:34
  saying,
• 8:34
  okay,
• 8:35
  should
• 8:35
  we
• 8:35
  start
• 8:35
  removing
• 8:36
  de
• 8:36
  minimis.
• 8:37
  And
• 8:37
  if
• 8:38
  you
• 8:38
  look
• 8:38
  at
• 8:38
  some
• 8:38
  of
• 8:38
  the
• 8:38
  recent
• 8:39
  stats
• 8:39
  about,
• 8:39
  you
• 8:40
  know,
• 8:40
  the
• 8:40
  influx
• 8:40
  of,
• 8:42
  you
• 8:42
  know,
• 8:42
  China
• 8:42
  just
• 8:42
  came
• 8:43
  out
• 8:43
  with
• 8:43
  a
• 8:43
  $1
• 8:44
  trillion
• 8:44
  surplus.
• 8:45
  It
• 8:45
  was
• 8:45
  the
• 8:45
  highest
• 8:45
  they've
• 8:46
  ever
• 8:46
  had.
• 8:47
  And
• 8:47
  if
• 8:47
  you
• 8:47
  look
• 8:47
  at
• 8:47
  the
• 8:48
  difference
• 8:48
  of
• 8:49
  what
• 8:49
  they
• 8:49
  lost
• 8:50
  from
• 8:50
  the
• 8:50
  US
• 8:50
  market,
• 8:51
  they
• 8:51
  just
• 8:51
  moved
• 8:52
  all
• 8:52
  of
• 8:52
  that
• 8:52
  over
• 8:52
  to
• 8:52
  the
• 8:53
  EU
• 8:53
  and
• 8:53
  all
• 8:53
  these
• 8:53
  other
• 8:54
  markets.
• 8:54
  I
• 8:54
  saw
• 8:54
  that.
• 8:55
  So
• 8:55
  now
• 8:55
  the
• 8:55
  EU
• 8:56
  is
• 8:56
  now
• 8:56
  taking
• 8:57
  a
• 8:57
  similar
• 8:57
  stance
• 8:57
  and
• 8:58
  they're
• 8:58
  also
• 8:58
  going
• 8:58
  to
• 8:58
  be
• 8:59
  start
• 8:59
  enacting
• 8:59
  removal
• 9:00
  of
• 9:00
  de
• 9:00
  minimis.
• 9:01
  I
• 9:01
  believe
• 9:01
  it's
• 9:01
  June
• 9:01
  or
• 9:01
  July,
• 9:02
  July
• 9:03
  2026.
• 9:03
  Yeah.
• 9:04
  And
• 9:05
  what
• 9:05
  kind
• 9:05
  of
• 9:05
  impact
• 9:05
  is
• 9:06
  that
• 9:06
  going
• 9:06
  to
• 9:06
  have
• 9:06
  on
• 9:07
  cross
• 9:07
  border
• 9:08
  shipping
• 9:08
  costs,
• 9:08
  Customer
• 9:09
  experience
• 9:09
  like
• 9:09
  these
• 9:10
  are
• 9:10
  all,
• 9:10
  everything's
• 9:11
  tied
• 9:11
  to
• 9:11
  it,
• 9:11
  right?
• 9:11
  Oh,
• 9:12
  absolutely.
• 9:12
  So
• 9:12
  how
• 9:12
  is
• 9:13
  that
• 9:13
  going
• 9:13
  to
• 9:13
  impact?
• 9:13
  Well,
• 9:13
  I
• 9:14
  think
• 9:14
  the
• 9:14
  number
• 9:14
  one
• 9:14
  Thing
• 9:14
  that
• 9:15
  we
• 9:15
  always
• 9:15
  talk
• 9:15
  about
• 9:15
  is
• 9:15
  how
• 9:16
  do
• 9:16
  you
• 9:16
  be
• 9:16
  proactive
• 9:17
  versus
• 9:17
  reactive
• 9:17
  in
• 9:18
  this?
• 9:19
  And
• 9:19
  when
• 9:19
  you
• 9:19
  talk
• 9:19
  about
• 9:19
  de
• 9:20
  minimis
• 9:20
  parcels,
• 9:20
  you
• 9:21
  talk
• 9:21
  about
• 9:21
  any
• 9:21
  inbound
• 9:21
  shipments.
• 9:22
  You
• 9:22
  want
• 9:22
  to
• 9:22
  understand,
• 9:22
  well,
• 9:23
  what
• 9:23
  are
• 9:23
  the
• 9:23
  de
• 9:23
  minimis
• 9:24
  rules
• 9:24
  for
• 9:24
  those
• 9:24
  goods
• 9:24
  coming
• 9:25
  into
• 9:25
  a
• 9:25
  market
• 9:25
  or
• 9:25
  if
• 9:26
  you're
• 9:26
  shipping,
• 9:26
  what's
• 9:27
  the
• 9:27
  country
• 9:27
  of
• 9:27
  origin?
• 9:28
  Because
• 9:28
  country
• 9:28
  of
• 9:28
  origin
• 9:29
  is
• 9:29
  now
• 9:29
  more
• 9:30
  important
• 9:30
  than
• 9:30
  ever.
• 9:30
  That's
• 9:31
  where
• 9:31
  the
• 9:31
  tariff
• 9:31
  rates
• 9:31
  are
• 9:32
  derivative
• 9:32
  from.
• 9:33
  And
• 9:33
  then
• 9:33
  the
• 9:33
  other
• 9:33
  part
• 9:33
  is
• 9:34
  about
• 9:34
  the
• 9:34
  compliance
• 9:34
  piece,
• 9:35
  understanding
• 9:35
  your
• 9:35
  HS
• 9:36
  codes.
• 9:36
  We,
• 9:36
  we
• 9:37
  call
• 9:37
  those
• 9:37
  the
• 9:37
  Rosetta
• 9:38
  stone
• 9:38
  of
• 9:38
  cross
• 9:38
  border
• 9:39
  trade.
• 9:40
  Yeah.
• 9:40
  The
• 9:41
  fingerprint
• 9:41
  of
• 9:41
  an
• 9:41
  item.
• 9:42
  I
• 9:42
  mean
• 9:42
  everything
• 9:42
  has
• 9:43
  its
• 9:43
  unique
• 9:43
  identifier.
• 9:44
  I
• 9:44
  love
• 9:44
  it.
• 9:44
  So
• 9:45
  you
• 9:45
  have
• 9:45
  all
• 9:45
  of
• 9:45
  those
• 9:45
  three
• 9:46
  pieces
• 9:46
  together.
• 9:46
  You
• 9:47
  need
• 9:47
  to
• 9:47
  do
• 9:47
  that
• 9:48
  with
• 9:48
  removal
• 9:48
  of
• 9:48
  the.
• 9:49
  Understanding
• 9:49
  that
• 9:49
  with
• 9:49
  the
• 9:49
  removal
• 9:50
  of
• 9:50
  de
• 9:50
  minimis
• 9:50
  or
• 9:51
  just
• 9:51
  cross
• 9:51
  border
• 9:52
  trade
• 9:52
  as
• 9:52
  is
• 9:53
  right
• 9:53
  now,
• 9:53
  you
• 9:53
  have
• 9:53
  to
• 9:53
  be
• 9:53
  more
• 9:54
  proactive
• 9:54
  versus
• 9:54
  reactive.
• 9:55
  These
• 9:55
  changes
• 9:55
  aren't
• 9:56
  going
• 9:56
  to
• 9:56
  stop
• 9:56
  those
• 9:56
  customs
• 9:57
  descriptions.
• 9:57
  And
• 9:57
  it's
• 9:57
  like
• 9:58
  in
• 9:58
  any
• 9:58
  other
• 9:58
  machine,
• 9:59
  right.
• 9:59
  If
• 9:59
  you
• 9:59
  have
• 9:59
  bad
• 10:00
  data
• 10:00
  going
• 10:00
  in,
• 10:00
  you're
• 10:00
  going
• 10:00
  to
• 10:01
  get
• 10:01
  bad
• 10:01
  data
• 10:01
  going
• 10:02
  out.
• 10:02
  So.
• 10:02
  Absolutely.
• 10:03
  As
• 10:03
  customs
• 10:03
  enforcement
• 10:04
  authorities
• 10:04
  are
• 10:05
  looking
• 10:06
  more
• 10:06
  closely
• 10:06
  at
• 10:07
  item
• 10:07
  descriptions,
• 10:07
  matching
• 10:08
  it
• 10:08
  to
• 10:08
  an
• 10:08
  HS
• 10:09
  code
• 10:09
  and
• 10:09
  it's
• 10:09
  not
• 10:09
  like
• 10:10
  it
• 10:10
  was
• 10:10
  in
• 10:10
  the
• 10:10
  past
• 10:10
  where
• 10:11
  even
• 10:11
  if
• 10:11
  there
• 10:11
  was
• 10:11
  a
• 10:11
  little
• 10:12
  bit
• 10:12
  of
• 10:12
  discrepancy,
• 10:12
  maybe
• 10:13
  they
• 10:13
  would
• 10:13
  err
• 10:13
  on
• 10:13
  the
• 10:13
  side
• 10:13
  of
• 10:14
  allowing
• 10:14
  it
• 10:14
  through
• 10:15
  now
• 10:15
  they
• 10:15
  are
• 10:16
  no,
• 10:16
  the
• 10:16
  just
• 10:16
  code
• 10:17
  doesn't
• 10:17
  match
• 10:17
  your
• 10:17
  description.
• 10:18
  Let's
• 10:18
  take
• 10:18
  a
• 10:18
  not
• 10:19
  moving,
• 10:19
  let's
• 10:19
  take
• 10:19
  a
• 10:20
  quick.
• 10:20
  For
• 10:20
  the
• 10:20
  viewers
• 10:21
  and
• 10:21
  listeners.
• 10:21
  So
• 10:22
  it's
• 10:22
  really
• 10:22
  important
• 10:23
  for
• 10:23
  everybody
• 10:23
  when
• 10:24
  we're
• 10:24
  having
• 10:24
  this
• 10:24
  conversation,
• 10:25
  we're
• 10:25
  a
• 10:25
  little
• 10:25
  bit
• 10:25
  more
• 10:25
  well
• 10:26
  versed.
• 10:26
  Right.
• 10:26
  So
• 10:27
  the
• 10:28
  EU
• 10:28
  de
• 10:28
  minimis,
• 10:29
  which
• 10:29
  used
• 10:29
  to
• 10:29
  be
• 10:29
  150.
• 10:30
  Well,
• 10:30
  is
• 10:31
  currently
• 10:31
  €150
• 10:32
  is
• 10:33
  going
• 10:33
  to
• 10:33
  be
• 10:33
  going
• 10:33
  away
• 10:34
  July
• 10:34
  1,
• 10:35
  2026.
• 10:36
  Let's
• 10:36
  say
• 10:36
  you
• 10:36
  have
• 10:36
  an
• 10:37
  order,
• 10:37
  T
• 10:37
  shirt
• 10:37
  and
• 10:38
  shoes,
• 10:39
  two
• 10:39
  items
• 10:40
  that
• 10:40
  are
• 10:40
  going
• 10:40
  to
• 10:40
  be
• 10:40
  shipped
• 10:41
  to,
• 10:41
  let's
• 10:41
  just
• 10:41
  say
• 10:42
  France,
• 10:42
  okay.
• 10:43
  And
• 10:43
  country
• 10:43
  of
• 10:44
  origin
• 10:44
  is
• 10:44
  United
• 10:44
  States,
• 10:45
  whatever
• 10:45
  it
• 10:45
  might
• 10:46
  be,
• 10:46
  what
• 10:46
  that
• 10:47
  means,
• 10:47
  what
• 10:47
  they're
• 10:47
  imposing
• 10:48
  is
• 10:48
  that
• 10:49
  for
• 10:49
  the
• 10:49
  T
• 10:49
  shirt
• 10:50
  you're
• 10:50
  going
• 10:50
  to
• 10:50
  get
• 10:50
  a
• 10:51
  three
• 10:51
  euro
• 10:51
  duty.
• 10:52
  For
• 10:53
  the
• 10:53
  shoes,
• 10:53
  you're
• 10:53
  going
• 10:53
  to
• 10:53
  get
• 10:53
  a
• 10:53
  three
• 10:54
  euro
• 10:54
  duty.
• 10:55
  For
• 10:55
  the
• 10:55
  T
• 10:55
  shirt,
• 10:56
  you're
• 10:56
  going
• 10:56
  to
• 10:56
  get
• 10:56
  a
• 10:56
  €2
• 10:57
  processing
• 10:57
  or
• 10:57
  handling
• 10:58
  fee
• 10:58
  and
• 10:59
  that
• 10:59
  could
• 10:59
  change
• 10:59
  based
• 11:00
  on
• 11:00
  the
• 11:00
  country
• 11:00
  or
• 11:01
  the
• 11:01
  member
• 11:01
  state
• 11:01
  it's
• 11:01
  going
• 11:02
  to.
• 11:02
  And
• 11:02
  then
• 11:03
  for
• 11:04
  the
• 11:04
  shoes,
• 11:04
  2
• 11:05
  Euro
• 11:06
  processing
• 11:06
  fee.
• 11:06
  So
• 11:06
  you're
• 11:07
  looking
• 11:07
  at.
• 11:07
  Just
• 11:07
  for
• 11:07
  the
• 11:07
  T
• 11:07
  shirt
• 11:08
  and
• 11:08
  shoes,
• 11:08
  without
• 11:08
  your
• 11:09
  shipping
• 11:09
  costs,
• 11:10
  without
• 11:10
  any
• 11:10
  VAT,
• 11:11
  you're
• 11:11
  looking
• 11:11
  at
• 11:12
  €10
• 11:13
  right
• 11:13
  there.
• 11:13
  Just
• 11:13
  to
• 11:14
  get
• 11:14
  that
• 11:14
  right
• 11:14
  Just
• 11:15
  now.
• 11:15
  Cross
• 11:16
  border,
• 11:16
  you
• 11:17
  got
• 11:17
  to
• 11:17
  talk
• 11:17
  about
• 11:17
  the
• 11:17
  revenue
• 11:18
  though
• 11:18
  that
• 11:18
  these
• 11:18
  countries
• 11:18
  are
• 11:19
  creating
• 11:19
  are
• 11:20
  getting.
• 11:21
  I
• 11:21
  mean
• 11:21
  the
• 11:21
  U.S.
• 11:22
  i
• 11:22
  don't
• 11:22
  really
• 11:22
  want
• 11:23
  to
• 11:23
  talk
• 11:23
  about
• 11:23
  it,
• 11:23
  but
• 11:23
  I
• 11:23
  know
• 11:24
  we
• 11:24
  can
• 11:24
  talk
• 11:24
  the
• 11:25
  US
• 11:25
  if
• 11:26
  you
• 11:26
  like
• 11:26
  stats.
• 11:27
  So
• 11:27
  I'm
• 11:27
  going
• 11:27
  to
• 11:27
  throw
• 11:27
  some
• 11:27
  more
• 11:27
  stats
• 11:28
  out
• 11:28
  of
• 11:28
  you.
• 11:28
  So
• 11:28
  I
• 11:29
  think
• 11:29
  the
• 11:29
  stat
• 11:29
  was
• 11:30
  in
• 11:30
  2024
• 11:31
  was
• 11:31
  88
• 11:31
  billion
• 11:32
  that
• 11:32
  CBP
• 11:33
  had
• 11:33
  collected
• 11:34
  from
• 11:34
  duties,
• 11:34
  taxes
• 11:34
  and
• 11:35
  other
• 11:35
  fees.
• 11:36
  Last
• 11:36
  year
• 11:36
  it
• 11:36
  was
• 11:36
  over
• 11:37
  215
• 11:38
  billion.
• 11:39
  You
• 11:39
  talk
• 11:39
  about
• 11:39
  that
• 11:40
  section
• 11:40
  232s
• 11:41
  on
• 11:41
  steel
• 11:42
  and
• 11:42
  aluminum,
• 11:42
  all
• 11:42
  of
• 11:42
  the
• 11:43
  IEPA
• 11:43
  tariffs,
• 11:44
  et
• 11:44
  cetera.
• 11:44
  So
• 11:45
  now
• 11:45
  you
• 11:45
  have
• 11:45
  these
• 11:45
  other
• 11:45
  markets
• 11:46
  also
• 11:46
  looking
• 11:46
  and
• 11:46
  saying,
• 11:47
  okay,
• 11:47
  well
• 11:47
  look
• 11:47
  at
• 11:47
  how
• 11:47
  much
• 11:48
  revenue
• 11:48
  is
• 11:48
  also
• 11:48
  coming
• 11:48
  in.
• 11:49
  We're
• 11:50
  protecting
• 11:50
  some
• 11:51
  of
• 11:51
  our
• 11:51
  merchants
• 11:51
  or
• 11:51
  retailers,
• 11:52
  but
• 11:52
  we're
• 11:52
  also
• 11:52
  collecting
• 11:53
  this
• 11:53
  additional
• 11:53
  revenue
• 11:54
  that's
• 11:54
  out
• 11:54
  there.
• 11:55
  So
• 11:56
  can
• 11:56
  you
• 11:56
  just
• 11:56
  clarify
• 11:57
  CBP
• 11:57
  real
• 11:57
  quick?
• 11:57
  Yeah,
• 11:58
  yeah.
• 11:58
  Customs
• 11:58
  Border
• 11:58
  Protection
• 11:59
  Agency.
• 11:59
  Perfect.
• 12:00
  Yeah,
• 12:00
  yeah.
• 12:00
  Part
• 12:01
  two
• 12:01
  of
• 12:01
  your
• 12:01
  question
• 12:01
  is
• 12:02
  how
• 12:03
  will
• 12:03
  this
• 12:03
  impact
• 12:03
  cross
• 12:04
  border
• 12:04
  logistics,
• 12:05
  shipping
• 12:06
  costs
• 12:06
  and
• 12:06
  customer
• 12:06
  experience,
• 12:07
  these
• 12:07
  EU
• 12:08
  de
• 12:08
  minimis
• 12:09
  changes
• 12:09
  because
• 12:09
  it
• 12:09
  really
• 12:09
  ties
• 12:10
  to.
• 12:10
  Everything
• 12:10
  because
• 12:11
  every
• 12:11
  aspect
• 12:12
  of
• 12:12
  that,
• 12:12
  that
• 12:13
  business
• 12:13
  is
• 12:13
  now.
• 12:14
  What
• 12:14
  are
• 12:14
  your
• 12:14
  thoughts
• 12:14
  on
• 12:14
  that?
• 12:15
  Yeah,
• 12:15
  I
• 12:15
  mean
• 12:15
  I
• 12:15
  think,
• 12:16
  you
• 12:17
  know,
• 12:17
  I've
• 12:17
  been
• 12:17
  in
• 12:18
  the
• 12:18
  cross
• 12:18
  border
• 12:18
  space
• 12:19
  for
• 12:19
  15
• 12:19
  plus
• 12:20
  years
• 12:20
  and
• 12:20
  we
• 12:20
  worked
• 12:21
  with
• 12:21
  a
• 12:21
  lot
• 12:21
  of
• 12:21
  retailers
• 12:22
  in
• 12:22
  former
• 12:23
  life.
• 12:23
  The
• 12:24
  number
• 12:24
  one
• 12:24
  thing
• 12:24
  that
• 12:24
  was
• 12:24
  most
• 12:25
  impactful
• 12:25
  was
• 12:25
  ensuring,
• 12:26
  you
• 12:26
  know,
• 12:26
  if
• 12:27
  these
• 12:27
  goods
• 12:27
  are
• 12:27
  no
• 12:28
  longer
• 12:28
  going
• 12:28
  to
• 12:29
  be
• 12:29
  duty
• 12:29
  free,
• 12:30
  you're
• 12:31
  going
• 12:31
  to
• 12:31
  want
• 12:31
  to
• 12:31
  make
• 12:31
  sure
• 12:31
  that
• 12:31
  you
• 12:32
  start
• 12:32
  educating
• 12:33
  what
• 12:33
  a
• 12:33
  duty
• 12:34
  is
• 12:34
  up
• 12:34
  to
• 12:34
  your
• 12:34
  consumers
• 12:36
  and
• 12:36
  calculating
• 12:36
  that
• 12:37
  at
• 12:37
  checkout.
• 12:37
  The
• 12:38
  number
• 12:38
  one
• 12:38
  driver
• 12:39
  of
• 12:39
  card
• 12:39
  abandonment
• 12:39
  is
• 12:40
  not
• 12:40
  displaying
• 12:40
  duties
• 12:41
  and
• 12:41
  taxes
• 12:41
  and
• 12:41
  having
• 12:41
  clear
• 12:42
  transparent
• 12:43
  pricing
• 12:43
  out
• 12:43
  there.
• 12:44
  So
• 12:44
  you're
• 12:44
  going
• 12:44
  to
• 12:44
  want
• 12:44
  to
• 12:44
  put
• 12:45
  that
• 12:45
  out
• 12:45
  there
• 12:45
  and
• 12:45
  make
• 12:45
  sure
• 12:45
  that
• 12:46
  when
• 12:46
  that
• 12:46
  parcel
• 12:46
  gets
• 12:47
  to
• 12:47
  Mr.
• 12:47
  Foreign
• 12:48
  Doorstep,
• 12:49
  they're
• 12:49
  not
• 12:49
  going
• 12:49
  to
• 12:49
  get
• 12:49
  hit
• 12:50
  because
• 12:50
  it
• 12:50
  was
• 12:50
  a
• 12:50
  DDU
• 12:51
  delivery
• 12:52
  duty
• 12:52
  unpaid
• 12:52
  for
• 12:53
  those
• 12:53
  that
• 12:53
  don't
• 12:53
  know
• 12:53
  and
• 12:54
  they
• 12:54
  start
• 12:54
  getting
• 12:54
  hit
• 12:55
  with
• 12:55
  additional
• 12:55
  fees.
• 12:56
  Yeah.
• 12:57
  What
• 12:57
  are
• 12:58
  some
• 12:58
  of
• 12:58
  Avalara's
• 12:59
  customers
• 12:59
  doing
• 13:00
  to
• 13:00
  actively
• 13:00
  reevaluate
• 13:01
  and
• 13:01
  like
• 13:02
  their
• 13:02
  supply
• 13:02
  chains
• 13:02
  to
• 13:03
  reduce
• 13:03
  the
• 13:03
  tariff
• 13:03
  exposure,
• 13:04
  mitigate
• 13:05
  compliance
• 13:05
  risk,
• 13:05
  those
• 13:06
  things.
• 13:06
  Yeah.
• 13:06
  So
• 13:07
  again,
• 13:07
  going
• 13:07
  back
• 13:07
  to
• 13:07
  the
• 13:08
  whole
• 13:08
  how
• 13:08
  do
• 13:09
  you
• 13:09
  be
• 13:09
  proactive
• 13:09
  versus
• 13:10
  reactive
• 13:10
  in
• 13:10
  these
• 13:10
  instances?
• 13:11
  So
• 13:11
  we're
• 13:11
  always
• 13:12
  talking,
• 13:12
  you
• 13:12
  know,
• 13:13
  if
• 13:13
  you
• 13:13
  are,
• 13:13
  you
• 13:14
  know,
• 13:14
  we
• 13:14
  work
• 13:14
  with
• 13:14
  a
• 13:14
  slew
• 13:15
  of
• 13:15
  businesses
• 13:16
  from
• 13:16
  some
• 13:16
  of
• 13:17
  the
• 13:17
  largest
• 13:17
  marketplaces
• 13:18
  out
• 13:18
  there,
• 13:18
  e
• 13:18
  commerce
• 13:19
  platforms,
• 13:20
  even
• 13:20
  down
• 13:20
  to
• 13:20
  the,
• 13:20
  onto
• 13:21
  the
• 13:21
  government
• 13:21
  side
• 13:21
  of
• 13:22
  things.
• 13:22
  Okay.
• 13:22
  The
• 13:23
  number
• 13:23
  one
• 13:23
  thing
• 13:23
  is,
• 13:23
  you
• 13:24
  know,
• 13:24
  again,
• 13:24
  understanding
• 13:25
  what
• 13:25
  are
• 13:26
  the
• 13:26
  codes
• 13:26
  on
• 13:27
  all
• 13:27
  those
• 13:27
  goods
• 13:27
  that
• 13:27
  you
• 13:27
  have
• 13:28
  within
• 13:28
  your
• 13:28
  catalog
• 13:29
  and
• 13:29
  then
• 13:29
  understanding
• 13:30
  what
• 13:30
  are
• 13:30
  the
• 13:30
  duty
• 13:31
  rates
• 13:31
  applied
• 13:31
  to
• 13:31
  those
• 13:32
  based
• 13:32
  upon
• 13:32
  the
• 13:32
  country
• 13:32
  of
• 13:33
  origin
• 13:33
  information.
• 13:33
  So
• 13:34
  maintaining
• 13:35
  a
• 13:35
  record
• 13:35
  set
• 13:35
  of
• 13:36
  all
• 13:36
  of
• 13:36
  that
• 13:36
  data
• 13:36
  is
• 13:37
  so
• 13:37
  critically
• 13:37
  important
• 13:38
  because
• 13:39
  you
• 13:39
  take
• 13:39
  all
• 13:39
  those
• 13:39
  facets
• 13:40
  together,
• 13:40
  you
• 13:40
  can
• 13:40
  then
• 13:41
  understand
• 13:41
  we've
• 13:42
  been
• 13:42
  calling
• 13:42
  it
• 13:42
  really
• 13:42
  tariff
• 13:43
  modeling.
• 13:43
  Okay.
• 13:44
  Now
• 13:44
  I've
• 13:44
  been
• 13:44
  importing
• 13:45
  most
• 13:45
  majority
• 13:45
  of
• 13:45
  my
• 13:45
  goods
• 13:46
  for
• 13:46
  the
• 13:46
  past
• 13:46
  15
• 13:46
  years
• 13:47
  from
• 13:47
  China.
• 13:48
  Now
• 13:48
  what
• 13:48
  other
• 13:48
  market
• 13:48
  should
• 13:49
  I
• 13:49
  be
• 13:49
  looking
• 13:49
  at
• 13:49
  if
• 13:49
  the
• 13:50
  tariff
• 13:50
  rate
• 13:50
  is
• 13:50
  above
• 13:50
  30%
• 13:51
  should
• 13:51
  I
• 13:51
  be
• 13:52
  looking
• 13:52
  at
• 13:53
  Vietnam?
• 13:54
  Other
• 13:54
  markets.
• 13:55
  And
• 13:55
  really
• 13:55
  that's
• 13:55
  how
• 13:56
  they're
• 13:56
  starting
• 13:56
  to
• 13:56
  look
• 13:56
  at
• 13:56
  things
• 13:57
  of
• 13:57
  what
• 13:57
  we've
• 13:57
  been
• 13:57
  calling
• 13:58
  tariff
• 13:58
  modeling.
• 13:58
  This
• 13:59
  something
• 13:59
  you
• 13:59
  guys,
• 14:00
  we
• 14:00
  absolutely
• 14:01
  help
• 14:01
  out
• 14:01
  with
• 14:01
  this.
• 14:01
  So
• 14:01
  we
• 14:01
  don't,
• 14:02
  we
• 14:02
  don't
• 14:02
  do
• 14:02
  anything
• 14:02
  in
• 14:02
  relation
• 14:03
  to
• 14:03
  the
• 14:03
  shipping
• 14:04
  logistics.
• 14:04
  Yep.
• 14:04
  We
• 14:05
  help
• 14:05
  kind
• 14:05
  of
• 14:05
  provide
• 14:05
  that
• 14:06
  more
• 14:06
  guided
• 14:06
  insights
• 14:07
  in
• 14:07
  terms
• 14:07
  of
• 14:08
  what
• 14:08
  are
• 14:08
  the
• 14:08
  HS
• 14:09
  classification
• 14:09
  codes
• 14:10
  on
• 14:10
  importing
• 14:10
  those
• 14:10
  markets?
• 14:11
  What
• 14:11
  are
• 14:11
  the
• 14:11
  additional
• 14:11
  duties
• 14:12
  out
• 14:13
  there?
• 14:13
  What
• 14:13
  are
• 14:13
  other
• 14:14
  restrictions
• 14:14
  and
• 14:14
  regulations
• 14:15
  you
• 14:15
  should
• 14:15
  be
• 14:16
  aware
• 14:16
  of?
• 14:16
  Also
• 14:17
  if
• 14:17
  you're
• 14:17
  importing
• 14:18
  those
• 14:18
  from
• 14:18
  other
• 14:18
  markets
• 14:19
  as
• 14:19
  well,
• 14:19
  again,
• 14:19
  it
• 14:20
  goes
• 14:20
  back
• 14:20
  to
• 14:20
  that
• 14:20
  how
• 14:20
  do
• 14:20
  you
• 14:21
  be
• 14:21
  proactive
• 14:21
  versus
• 14:21
  reactive
• 14:22
  on
• 14:22
  that
• 14:22
  front
• 14:23
  and
• 14:23
  having
• 14:23
  that
• 14:24
  information
• 14:24
  ahead
• 14:24
  of
• 14:24
  time
• 14:25
  to
• 14:25
  make
• 14:25
  a
• 14:25
  decision.
• 14:26
  Super
• 14:26
  important
• 14:27
  for
• 14:27
  2026.
• 14:28
  Yeah.
• 14:28
  Shane
• 14:29
  Avalara
• 14:30
  Trade
• 14:30
  and
• 14:31
  Tariff
• 14:31
  Tuesday
• 14:32
  is
• 14:32
  their
• 14:32
  podcast
• 14:33
  to
• 14:33
  help
• 14:33
  you
• 14:33
  guys
• 14:34
  get
• 14:34
  a
• 14:34
  little
• 14:34
  bit
• 14:34
  more
• 14:34
  knowledgeable
• 14:35
  on
• 14:35
  some
• 14:35
  of
• 14:35
  these
• 14:35
  topics.
• 14:36
  And
• 14:36
  thank
• 14:36
  you
• 14:37
  so
• 14:37
  much
• 14:37
  for
• 14:37
  joining.
• 14:37
  Thank
• 14:38
  you
• 14:38
  for
• 14:38
  joining.
• 14:38
  Yeah,
• 14:38
  I
• 14:38
  appreciate
• 14:39
  it.
• 14:39
  Thanks
• 14:39
  all.
• 14:40
  Share,
• 14:40
  subscribe
• 14:41
  and
• 14:41
  download
• 14:41
  our
• 14:42
  podcast
• 14:42
  to
• 14:43
  learn
• 14:43
  more
• 14:43
  about
• 14:43
  today's
• 14:44
  topic
• 14:44
  or
• 14:45
  for
• 14:45
  a
• 14:45
  free
• 14:45
  consultation,
• 14:46
  email
• 14:47
  us
• 14:47
  at
• 14:48
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• 14:49
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• 14:49
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• 14:50
  for
• 14:51
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• 14:51
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• 14:52
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• 14:53
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• 14:53
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• 14:54
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• 14:55
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• 14:55
  to
• 14:56
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