As the holiday season approaches, direct-to-consumer (D2C) ecommerce brands are feeling pressure on two fronts: rising tariffs and technology limitations. In a recent industry survey by EMARKETER, 37% of D2C professionals listed tariffs and duties as a leading concern, nearly matching the level of anxiety around fulfillment technology and digital systems. This signals that operational complexity is rising at the exact moment brands rely most on smooth performance.
Adding to uncertainty, U.S. non-store retail growth forecasts have softened, expected to land closer to 7% this year compared with the 9-10% seen throughout the prior market boom. And while the D2C model continues to grow in popularity, its share of total U.S. ecommerce is projected to plateau around 19%. Competition is increasing while growth becomes harder to capture.
Investments in more robust ecommerce platforms, improved checkout flows, agile inventory positioning, and diversified fulfillment capabilities can help mitigate tariff-driven cost spikes. The winners this peak season will be those that strengthen customer experience and operational resilience, even when external forces are unpredictable.
The U.S. administration has introduced a 10% tariff increase on imports from Canada, escalating tensions between two of the world’s closest trading partners. The action follows a political advertising campaign out of Ontario that criticized U.S. tariff policies. While the government has not yet published a detailed product list or timeline, the announcement signals a renewed period of trade friction.
This isn’t the first tariff escalation between the countries. The U.S. previously imposed a 35% tariff on Canadian goods under the USMCA framework, and negotiations between the two governments have been suspended multiple times due to ongoing political sparring. These disruptions challenge key cross-border supply chains in industries such as manufacturing, automotive, agriculture, and consumer goods.
For logistics leaders, uncertainty is now the biggest cost driver. Tariffs may raise landed costs overnight, lead to sourcing shifts, or require increased safety stock. Companies reliant on Canadian imports should begin scenario planning around supplier diversification and evaluating tariff-classification strategies. As policies continue to evolve quickly, being proactive will determine who stays competitive through the turbulence.