Tariffs, trade wars and online income – is there a link?
In today’s rapidly shifting economic climate, online entrepreneurs can no longer afford to ignore global trade policy. With new tariffs, rising tensions between trading blocks, and a growing emphasis on sustainability and localisation, the online income landscape is changing almost daily.
Whether you are sourcing products, building digital content, or running an affiliate-based business, the message is clear: what worked yesterday might not work tomorrow. In this article, we explore what’s happening, why it matters, and how online business owners like you can diversify and protect their income streams in this new global reality.
A changing global economy
In April 2025, the United States announced a steep new tariff hike on many countries of the world, but particularly on imports from China, including a proposed 145% levy on certain goods. This move follows ongoing trade tensions between the two nations, further complicating global supply chains.
The US is also considering removing the de minimis exemption, which currently allows imports under $800 to enter the country duty-free. If this exemption is closed, many small import-based sellers may face unexpected taxes, fees, and delays. But what we know today may all change by next week!
Meanwhile, the UK and EU are tightening customs and VAT rules in the wake of Brexit and increasing their focus on sustainability and transparency in global trade. Sellers in both regions report delays, higher costs, and more complex compliance requirements, especially for goods originating outside the EU. They are also facing additional US tariffs but the levels charged vary depending on the day of the week it seems, with President Trump announcing tariffs, changing the rates the next day and putting in delays on some coming in. The only thing that seems certain at the moment is that everything is uncertain!
This is not just a USA /China story. This is a global reset.
Why this matters for online entrepreneurs
These changes have already started to affect:
- Dropshipping businesses relying on Chinese suppliers
- E-commerce sellers using platforms like Etsy, Amazon, or eBay
- Small brands importing physical products for sale or fulfilment
- Affiliate marketers promoting international products
Recent headlines show the impact:
- A fashion brand founder in Australia reported a 200% increase in import costs after tariff changes
- Etsy sellers have voiced concerns about losing customers in the EU due to sudden tax add-ons
- A BBC report said that many Chinese businesses had stopped production to wait out the trade war and were looking to other countries to fill the gap
In both cases, the businesses were running smoothly — until external policy shifts forced them to rethink.
Diversify or risk disruption
If you rely on a single platform, product type, or supply source, you’re vulnerable. Tariffs, taxes, and regulations are changing quickly, and global delivery chains are no longer guaranteed. If the raw materials for a product you promote as an online entrepreneur crosses the borders more than once, then the hike in the final product price will be considerable.
The key is to protecting your income here is through diversification. And one of the most sustainable, scalable ways to diversify your income is by creating and selling your own digital products.
Why digital products could be your safety net
Unlike physical inventory, digital products are immune to shipping fees, customs regulations, and import taxes. They offer high profit margins, are scalable with low overheads, and can be sold globally with minimal friction.
Examples of digital products include:
- Ebooks, guides, or printable workbooks
- Online courses or micro-courses
- Canva templates, planners, or trackers
- Notion dashboards, Excel spreadsheets, or productivity tools
- Stock photos, music, or creative assets
- Membership sites or paid digital communities
- AI prompts or niche content packs
The beauty of digital products is that they can help you turn your knowledge into income. Whether you blog about parenting, teach productivity skills, or design templates for small businesses, there’s a way to turn what you know into something people will pay for.
And once created, these assets can be sold again and again, building recurring income even as the rest of the world shifts.
Is there a downside? Well perhaps, because you actually have to CREATE the products in the first place. However, with the online digital tools that are currently available and with an AI assistant, it is easier than ever to create digital assets to expand your portfolio.
Five ways to build resilience into your online income
- Create a secondary income stream
If you’ve built a product-based or affiliate site, consider adding a digital offer or consulting tier. If you’ve already built a list of interested customers, explore turning your most popular posts and advice into a downloadable guide or email course. - Work with multiple suppliers or platforms
Don’t rely solely on one manufacturer, marketplace, or region. The same goes for search engines or social media sites. Explore sourcing alternatives from other parts of the world and build flexibility into your business model. The ‘safest’ model for the moment may be to partner with local businesses within your own country, where tariffs will not apply. - Get familiar with regional regulations
Make sure you keep up-to-date with the new tariffs and regulations (even though they are changing daily). If this is part of your business, make it your business to know and stay one step ahead of cross-border compliance. - Make pricing adaptable
Add buffer room in your pricing structure to absorb rising costs, or if you are an affiliate, plan your strategy using a range of price structures. For example, case A is with no tariffs, case B is with a lower range of tariffs, and case C is the worst-case scenario. Use bundles and bonuses to add value without cutting into margins. - Invest in building your brand
Having an audience that trusts your voice gives you room to adapt. Prioritise email marketing, storytelling, and value-based content that builds loyalty beyond the products you promote. You can even use the situation to educate your customers on what these tariffs and trade wars may do to them.
Don’t overlook the UK and EU
For entrepreneurs in Britain and Europe, the post-Brexit landscape brings added complexity.
In the UK:
- The EU VAT One-Stop Shop no longer applies
- EU customers face unexpected charges unless UK sellers register and collect VAT
- UK sellers face delays and paperwork for every parcel leaving the country
In the EU:
- Sustainability directives and product traceability laws are increasing
- Localising product ranges and reducing environmental impact is becoming key
- Digital product sellers must track VAT and consumer protection policies across member states
These are not minor tweaks. They represent a new era of friction in cross-border selling which could affect the products you choose to become an affiliate for.
Final thoughts: Stay agile, stay informed
The tariff war is not an isolated event, and it’s not unheard of. It’s part of a broader global reset — a move toward regional resilience, environmental accountability, and economic self-interest. One reporter said it was “the end of globalisation”.
As online entrepreneurs, we must read the signs and respond with strategy, not panic. There have always been challenges that get in the way of doing business, but successful entrepreneurs don’t just sit and moan; they adapt. And that means doing something different and thinking outside of the box. And yes, we are talking to YOU as an online entrepreneur. The online world is not immune, and we must all be ready to go where the new normal takes us.
This means:
- Creating value-driven content
- Offering products that are not platform and border-dependent
- Keeping customer communication honest and clear
- Having more than one income tap flowing at all times
Most importantly, it means betting on your creativity instead of chasing outdated or trends.
The game is still winnable. But the rules have changed.
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This was a timely and insightful read! Your breakdown of how global trade tensions and shifting policies—like the steep U.S. tariffs and the potential removal of the de minimis exemption—are impacting online entrepreneurs really hit home. I appreciated the emphasis on diversification, especially the pivot toward creating and selling digital products. It’s a powerful reminder that relying solely on physical goods or single platforms can be risky in today’s volatile economic climate. Do you have any recommendations for first steps someone should take when transitioning from physical products to digital offerings? Thanks for shedding light on this important topic!
Hello Bob. Thank you for taking the time to read this post and leave your comments – they are much appreciated. I’m glad you found some of the suggestions useful and hope that you can use some of the suggestions in your own business. To answer your question, I would also try to develop a short course with the knowledge that you have already. If you have a website and are writing interesting and novel content for that site, they you can use that to create a course. I’m always looking for ‘how to’ information on the internet and I’m not alone. If you look at our post on: https://myonlineincome.org/how…, you’ll see a step-b-step guide. Wishing you all the best with your own business. Gail
In today’s global economy, the effects of tariffs and trade wars are being felt across industries, especially for entrepreneurs who rely on international markets. The uncertainty surrounding trade policies has made it clear that diversification is no longer optional but essential. By diversifying income streams, whether through multiple online platforms or expanding into different markets, entrepreneurs can better weather the impact of global economic shifts.
In my experience with online business, I’ve learned that relying on a single income source or platform is risky, especially when external factors like tariffs and trade wars can suddenly disrupt things. Diversifying not only provides a buffer against potential losses but also opens up new growth opportunities.
What’s your take on this? Have you adjusted your strategies in light of these economic shifts?
Hi AJ. Thank you your kind comments and I’m glad you found the article useful and timely. I think that as things stand, we all need to think about diversification in our businesses. I have been developing digital assets as mentioned in the post because I like the idea of owning assets that are my copyright and not always relying on affiliate sales. As a writer primarily, this falls into my skillset well but I think each person has to find their own path through the diversification jungle. But as we both agree, it’s a necessity, not an option!