Navigating the US Market for Ecommerce Businesses

We’ve all seen the news – earlier this year, the US imposed tariffs on major trading partners, followed by a general tariff on all countries in April 2025.  

What are the new changes? As an ecommerce business, how should you navigate the new market landscape?

Find out more about how TBA Global can support your business.  

What are the tariff changes so far?

On 2 April, US President Donald Trump announced a new set of tariffs to supplement existing measures introduced earlier this year.  These tariffs were implemented via a presidential executive order.

A new 10% ‘baseline’ tariff rate now applies to all imports into the United States as of 5 April.  A select number of countries will only be subject to the base rate (Argentina, Australia, Brazil, Colombia, El Salvador, New Zealand, Saudi Arabia, Singapore, Turkey, United Arab Emirates, United Kingdom).  

In addition to the baseline tariff policy, other key trading partners are subject to special tariff rates, such as a 20% tariff for the European Union.

Despite the changes, the US currently remains a key target market for ecommerce businesses.  To help you with your business expansion plans, our US services remain competitively priced.    

One of our key services is a nexus study – let’s

Reduce your costs with TBA Global

We are now offering an exclusive promotion to help reduce the costs of operating in the US – our nexus study services have been discounted by 50%!

These exclusive prices are available until 30 June 2025 – for more information, contact us now!

What is a US nexus?

There is no universal sales tax rate across the US.  Instead, each state (and some individual local areas) is able to set their own sales tax rates.   This means that each state will also set their own registration requirements.

A ‘nexus’ refers to a link between a business and the state that it is actively trading in.  If your business has established a nexus with a state, you will need to register for sales tax (and apply for any relevant permit) in that particular state. 

A nexus can be established in two ways:

1. Physical presence

This refers to a business having a physical presence in the state.  The definition of ‘physical presence’ can include:

• Physical stores and/or office buildings
• Employees and/or contractors
• Warehouses and/or inventory
• Attendance at trade shows and other business events

2. Economic ties

States can set a pre-defined threshold of business activity.  Upon reaching the threshold, a nexus is formed between the business and the state.  The threshold is often based on either or both of:

• Total revenue
• Number of transactions

Why do I need to conduct a US nexus study for my business?

Different states will have different thresholds for establishing a nexus, and different registration deadlines.

For example:

Texas (TX):

• Economic nexus – $500,000 in total revenue
• Businesses must register by the first day of the fourth month after reaching the threshold

New York (NY):

• Economic nexus – $500,000 in total revenue, and 100 transactions
• Businesses must register within 30 days of reaching the threshold

As you can see, it can be very difficult to keep track of whether your business has established a nexus!

Each state will also have its own rules on registering for sales tax once you have established a nexus. 

It’s therefore vital that you keep up to date – our nexus study services are designed to ensure that you are registered for sales tax in the correct states, helping you to avoid compliance issues. 

When you decide to register for US sales tax for the first time, we highly recommend undertaking a nexus study to determine which states you will initially focus on.

Should I choose the one-off or ongoing US nexus study service?

Our one-off nexus study service is perfect for businesses looking to expand into the US for the first time.  Your business may:

• Be looking to import and sell a limited quantity of goods
• Be targeting customers in specific states only

Our ongoing nexus study service is suitable for businesses looking to rapidly expand across the US.  In this case, your business may:

• Be looking to import and sell as many goods as possible, based on customer demand
• Be targeting customers in as many states across the US as possible

All information provided has been verified as accurate at the time of writing and is intended as guidance only – we highly recommend seeking relevant professional advice.  You may contact our team at info@tbaglobal.com to arrange a consultation.