Small businesses abroad are feeling the pinch as U.S. import tariffs disrupt holiday sales. For companies that once relied on smooth cross-border shipping, the end of tariff exemptions has nearly doubled costs for customers, causing order volumes to drop sharply.

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Some sellers are covering the new duties themselves to keep U.S. buyers happy, while others are pivoting to domestic markets or adjusting product offerings to maintain revenue. Even established online shops report steep declines in U.S. sales, with recovery slow despite strategic promotions and expanded shipping options.

The disruption highlights the risks of depending heavily on a single market. Many businesses are now exploring diversification — targeting other international customers, leveraging different shipping providers, and emphasizing domestic sales channels — to protect margins and ensure resilience during peak shopping periods.

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The overall picture underscores how regulatory changes and shipping costs can significantly impact small businesses’ ability to reach international buyers, especially during critical holiday sales windows.