The post Sourcing from China vs. representing a Chinese brand: a market-entry playbook for distributors and agents appeared first on Trade Ready.

But as Sean Emmond, CITP, EDC’s Chief Representative for Indonesia, explained during a recent FITTskills Live session, opportunity is only the starting point.

“I think Indonesia is a fascinating market. Maybe not an easy market, but one of those markets where, if you invest in it, you can certainly find considerable success.”

That distinction was central to the session. A promising market is not automatically the right market. Businesses need to look past the headline numbers and assess demand, competition, regulations, buyer dynamics, local partners, payment considerations and their own internal capacity before committing resources.

For companies considering Indonesia, Emmond’s message was clear: success depends on doing the work before entering the market.

Start by understanding the scale and complexity

One of the first points Emmond emphasized was the size of the country itself. Indonesia stretches about 5,000 kilometres from end to end, roughly the distance across a continent-sized market. It spans three time zones, includes thousands of islands and is home to hundreds of languages.

That scale matters for international businesses because Indonesia cannot be approached as a single, uniform market.

Java, where more than half of the population lives, includes sophisticated urban centres with modern infrastructure. Other regions may have different levels of development, logistics capacity, customer behaviour and business requirements.

For businesses assessing the market, this means research must go deeper than national level statistics. A company needs to know where, specifically, its product or service fits. Selling into Jakarta may require a different approach than serving customers in another region. Bali, for example, has its own characteristics as a tourism driven economy, while Sulawesi is known as a major mining destination.

The actionable takeaway: define the geographic market before defining the market entry strategy. “Indonesia” is too broad to be the whole answer.

Look for opportunity in areas of national investment

Emmond identified four broad areas where international companies are seeing significant opportunity in Indonesia: infrastructure, cleantech and renewables, protein and agri-food, and digital industries.

Infrastructure has been a major driver of the country’s growth, with ongoing investment in roads, ports, airports, rail and logistics. Clean technology and renewable energy are also important areas of focus, especially as Indonesia looks to reduce its reliance on coal-fired power generation and invest in solar, wind and geothermal energy.

Agri-food remains a strong area of opportunity for companies with the right products, expertise or technologies. Food security is a critical priority for the country, even though parts of Indonesia, including Java, are highly fertile.

Digital industries are another major opportunity. Indonesia’s geography has made digital infrastructure especially important, helping connect the country across islands and regions. Investments in connectivity, e-commerce infrastructure and data centres are creating openings for companies with relevant technology, services or expertise.

The key lesson is not simply to chase high growth sectors. Businesses should look for the intersection between market demand, government priorities and their own capabilities. If a company’s offer aligns with national priorities such as food security, energy security or human capital development, it may have a stronger case for market entry.

Understand who really drives demand

In Indonesia, understanding the buyer landscape is essential.

Emmond explained that government and government linked entities play a major role in the economy. He noted that more than 50% of the economy is controlled by government or government linked entities, which means government priorities can have a direct effect on demand for certain products and services.

For companies selling into sectors such as electricity, oil and gas, mining or aerospace, working with state owned enterprises is likely. These buyers operate differently from private sector customers and may be influenced by national policy priorities, public sector procurement processes and state asset management decisions.

Private conglomerates are also significant. Emmond described Indonesia as home to large, sophisticated and well-run conglomerates that make up a substantial portion of GDP.

Selling to these companies may involve a very different process than selling to a state-owned enterprise.

The practical takeaway is to map the full buying environment:

• Who is the direct customer?
• Who influences the decision?
• Is the opportunity tied to a government priority?
• Are you selling to a private conglomerate, a state-owned enterprise or another type of buyer?

These questions should be answered before serious time and money are invested.

Prepare for strong competition

Indonesia’s opportunity also attracts competitors.

Companies entering the market may face strong local firms as well as regional and global competitors. Emmond pointed to the presence of Korean, Japanese and Chinese companies, along with firms from Western Europe and the United States.

That makes differentiation essential. International businesses should be prepared to clearly communicate why their product, service, technology or expertise is relevant to the Indonesian buyer.

A general value proposition will not be enough in a competitive market with established players.

Businesses should ask themselves what problem they solve, why their solution is credible, how it compares with local and international alternatives, and what proof they can provide.

Assess regulatory and certification requirements early

Regulation, documentation and certification are another important part of market feasibility.

Emmond noted that there can be a significant regulatory burden in Indonesia. While trade agreements can create preferential tariff opportunities, companies still need to understand the extent to which certification, documentation or compliance requirements apply to their specific offering.

For food exporters, halal certification is one of the clearest examples. Emmond advised companies looking at food exports to make sure they have access to halal certification before going too far down the path.

The broader point applies across sectors.

Before entering any new market, businesses should identify the certifications, documentation, approvals, tariffs, payment considerations and compliance requirements that apply to their specific product or service.

These factors are not administrative details to handle later. They can affect cost, timing, pricing, market access and feasibility.

Choose local partners carefully

Local partners, distributors and representatives can be critical to success in Indonesia.

“You will need a local partner,” Emmond said, describing this as a key element of market entry.

The right partner can help a company understand local conditions, engage with buyers, navigate business culture and build credibility. The wrong partner can create delays, misalignment or missed opportunities.

Companies should evaluate potential partners based on both market knowledge and their ability to work effectively with foreign companies. A partner should understand the local business environment, but also be able to communicate clearly, represent the company’s interests and support long term growth.

This is not a decision to rush. Partner selection should be treated as a strategic step in the market entry process.

Invest in relationships and presence

One of Emmond’s strongest takeaways was the importance of showing up.

In Indonesia, as in many emerging markets, a physical presence matters. Frequent market visits can help companies test assumptions, build trust, meet buyers, understand local dynamics and develop stronger relationships with partners, regulators and customers.

Emmond shared a comment he once heard from an exporter:

“If you don’t know the names of your business partner’s kids, it’s very unlikely that you’ll find success in the Indonesian marketplace.”

The point is not that every business relationship must become personal. Rather, trust is built through time, familiarity and repeated engagement. Companies that expect quick results from a distance may struggle. Those that invest in relationships are better positioned to build traction.

Emmond also highlighted the role of memorandums of understanding in Indonesia. While MOUs may sometimes be viewed in other markets as symbolic, he explained that in Indonesia they can function as a “license to engage.” They signal that two organizations know each other and are beginning a business relationship.

Investigate before you invest

Indonesia offers meaningful opportunities for international businesses, especially in sectors aligned with infrastructure, clean energy, agri-food, digital connectivity and national development priorities. But it is also a complex market where success depends on preparation.

The strongest lesson from Emmond’s presentation was that market entry should be grounded in careful assessment.

Businesses need to look at demand, regional differences, buyer structures, competition, regulations, certification, partners, payment considerations, political risk and internal capacity.

A large market can be attractive. A growing market can be exciting. But the right market is the one where a business understands the opportunity, the risks and the work required to compete.

For companies considering Indonesia, the next step is not simply to ask whether the market has potential. It is to ask whether the opportunity is a true fit and whether the organization is ready to pursue it properly.

Learn from more global trade experts

FITTskills Live webinars are free opportunities to explore timely international trade topics with experienced professionals. Browse upcoming FITT events and register for the sessions that can help you keep building your trade knowledge.

The post Is Indonesia the right market for your business? Lessons on smarter market entry from Sean Emmond, CITP appeared first on Trade Ready.

As an international trade professional, Banksharon Nwaneri, CITP, has built his career around one guiding principle: creating meaningful connections that unlock opportunity.

“I enjoy fostering strategic partnerships, connecting people and businesses with opportunities, and seeing them grow from the point where I met them—despite barriers and obstacles.”

His work is grounded in impact, ranging from finding trade solutions for expanding U.S. businesses to driving broader transformations that foster a more connected world. Day to day, he helps U.S. companies enter new markets, win bids, and overcome trade barriers that could limit their success. But beyond facilitating transactions, he’s helping to shape the broader economic ties that connect nations. 

“I’m passionate about advancing inclusive economic growth in emerging markets and forging relationships that create real impact for both U.S. and local stakeholders,” he explains. 

A career defined by cross-sector expertise

Banksharon’s path to international trade has been diverse and multifaceted—something he views as a strength. Before joining the U.S. Embassy, he led strategic partnerships and business development initiatives at the British Council. Not only did he foster commercial collaboration between U.K. companies and foreign markets, but he also facilitated the export of U.K. goods and services and the expansion of U.K. education brands through local partnerships. 

In this role, one of his proudest accomplishments was spearheading a key B2B initiative for the British Council’s IELTS Program. The initiative was focused on reversing the decline in market share relative to competitors. For this project, Banksharon had the opportunity to design the entire program, from conceptualizing offers to creating incentive structures for partners such as test centers, institutions, and corporate clients. 

Measurable success for the British Council

The fruit of Banksharon’s hard work certainly paid off. With his plan, there was a measurable increase in market share and uptake of the British Council IELTS across B2B partner channels, demonstrating effective strategy execution from ideation to launch. 

“It was satisfying to take a project from abstract idea to measurable success,” he says.

“Seeing the market respond so positively validated the importance of a strategy rooted in partnership and insight.”

A breadth of banking and finance expertise to draw from

Before working for the British Council, Banksharon also spent over a decade in commercial banking and development finance, where he oversaw the Micro, Small, and Medium Enterprises (MSME) portfolio within the region, managing $500 million in liability products and $200 million in risk assets. 

As part of a results-driven banking environment, he set ambitious quarterly and annual sales and relationship targets, and exceeded them. 

“I continuously surpassed those goals, quarter after quarter. This success wasn’t just about numbers; it was a meaningful reflection of my ability to build strong client relationships, upsell effectively, and navigate complex financial product offerings,” he states.

“Each achievement felt deeply fulfilling precisely because it was earned through high performance under pressure.”

The power of preparation

For professionals looking to enter international trade, Banksharon offers one clear piece of advice: preparation is everything. 

“Avoid rushing into new markets without deeply understanding local consumer behaviour, competition, laws, tariffs, labelling, and Incoterm nuances. A lack of preparation can lead to costly delays or lost opportunities.”

His pragmatic approach has been honed through years of working in an array of industries with globally focused businesses and governments. Today, he uses that in-depth knowledge in the U.S. Department of Commerce to provide strategic insight across key sectors. 

There, he develops and maintains a strong network of commercial contacts across assigned countries and sectors while identifying and fostering business opportunities and partnerships in the interest of U.S. companies. 

The value of international business certification for Banksharon

Banksharon pursued the Certified International Trade Professional (CITP) designation as a way to formalize and validate the breadth of his experience. 

“What appealed most to me was how it validates not just knowledge, but also the ability to apply complex trade principles, from regulatory compliance to financial logistics, not just in theory, but on real-world projects.”

The CITP represents an important international business certification, giving professionals a credible and globally recognized credential that signals expertise, integrity, and strategic understanding in trade.

For Banksharon, it was a natural next step to strengthen his professional standing and global perspective. 

A proud achievement that expands market opportunities

Earning his CITP marked a proud milestone. “I feel excited and proud to have earned the designation,” he shares. “I foresee it opening new doors in new markets.” 

Through his leadership, Banksharon is opening markets for U.S. businesses, attracting investment, and building lasting partnerships across governments and global institutions. His track record makes one thing clear: he doesn’t just open doors, he walks through them with purpose and impact.  

The post CITP Spotlight: Banksharon Nwaneri – Commercial Specialist, U.S. Department of Commerce appeared first on Trade Ready.

The seeds for a career in international trade were planted at a young age for Joshua Boileau. Watching his family’s steadfast work ethic as a young boy made international trade a natural extension of the values he was raised upon. 

“I grew up in a household of blue-collar workers who instilled a sense of work excellence and dedication that inspired me to work in a career that amplified those skills. With international trade, I saw the connections with work ethic, dedication, and attention to detail.”

To him, work such as navigating regulations, supply chains, and cultural differences requires commitment, and for international businesses they are the glue that holds everything together. 

Joshua saw parallels between how international trade operated and how his family negotiated contracts, maintained client trust, and ensured quality. These similarities cemented his choice to pursue trade as a career path. 

Seeing the scale of world trade in action

Experiencing the scale of global trade, especially when it came to product management and marketing, was a favourite part of Joshua’s storied career. “I watched as live orders came in from international markets I’ve never been to. There was something deeply rewarding about knowing that a product team in Ottawa could be making an impact so far from home,” he says. 

Working at Shopify marked another pivotal chapter in his path, one that taught him a powerful lesson about perseverance. After the 2022 invasion of Ukraine, Shopify waived platform fees for Ukrainian merchants and Joshua saw firsthand the resilience of entrepreneurs in crisis while he helped Ukrainian merchants set up their online stores.  

“It was inspiring to see fashion, food, health and wellness, and retail shops pop up. A resilience through war and the pandemic.” These experiences broadened his understanding of what trade can achieve, not just operationally, but on a deeply human level. 

Pivoting small businesses in times of change

Joshua regards reacting to tariffs as one of the most interesting aspects of his career.

“Pivoting a business is incredibly difficult, especially in a small business environment. I feel the weight of change much more immensely than if I worked in a large company.”

But, by shifting focus to new markets, he has been able to help his employer open new and interesting paths. “Interacting with new international regulatory bodies, creating international market entry analyses, and creating international marketing plans has been stressful but rewarding,” he says. 

Start with the basics

For anyone entering the field of international trade, Joshua has one piece of advice that he learned from the current leadership at White Cross, James Dumont:

“You need to learn how to crawl before you can run.” 

International trade, he believes, demands patience, commitment, and a desire to do things the right way, at the right times.  

Learning from instructors filled with passion

Joshua completed the FITTskills program through Algonquin College, one of FITT’s educational partners. His favourite part of the FITTskills program was the people who taught it. 

“The professors had so many years of experience, skills, and cultural awareness that it exuded out of them.” 

He credits the courses with deepening his intercultural understanding, a critical skill in both e-commerce and global operations. 

“I came to realize that the classic business etiquette you see in other fields was dwarfed by the intercultural relationships in international trade.”

His favourite course, International Sales & Marketing, was particularly influential. Inspired by a professor who “had a passion for business and marketing that helped us find our own pulse in international trade,” Joshua pursued an optional co-op placement in South Africa, where he experienced culture shock, global marketing dynamics, and the intricacies of international marketing firsthand. 

These lessons would come into play later in his career at Shopify, where he saw “the power of international trade resilience, adapting to a new global norm in e-commerce.” 

Why he pursued the CITP designation

For Joshua, the Certified International Trade Professional (CITP®|FIBP®) designation represents something essential in today’s world: credibility. 

“There’s something to be said about credibility in a world that has shifted to creating policies and legislation backed by non-credibility. I want to have a credible voice, backed by a world-recognized professional organization, when dealing with international brands, brokers, reps, and supply chains.”

His comments highlight how, increasingly, designations like the CITP instill confidence in both the professionals who earn them and the partners who work with these professionals, creating a win-win scenario for both. 

Earning the designation also felt meaningful and forward-looking for Joshua. 

“I’m excited about where the CITP designation will lead me. I’m passionate about integrating international trade and my degree in sustainability.” 

Looking ahead: a global vision for e-commerce

Now, as E-Commerce Manager for an online pharmacy retailer, Joshua sees enormous potential for international diversification and the CITP designation strengthens that vision. 

“I see my CITP designation extending my current role in E-Commerce Management in online pharmacy retail. There is a lot of work to do in diversifying our international markets.”

With a blend of technical expertise, global awareness, and human-centred values, Joshua is poised to help shape the future of ethical, sustainable, and globally connected commerce. 

The post CITP Spotlight: Joshua Boileau – E-Commerce Management, White Cross Online appeared first on Trade Ready.

Emmanuel Ediale’s path into international trade was built on early exposure to global operations and a growing desire to understand the mechanics that power cross-border business. From the get-go, he knew what he wanted to do. 

“My career in international trade began immediately after college with a finance role at a logistics company,” he explains. “I was responsible for managing the financial aspects of cross-border logistics operations, as well as other business activities the company was engaged in at the time.” 

This early experience gave him a practical foundation in trade finance, operational risk, and the movement of goods across borders, knowledge that would influence every step of his career moving forward. 

Growth, standards, and developing trust along the way

Looking back, Emmanuel’s favourite professional moments are tied not just to milestones, but to momentum. 

“Managing a project from inception to completion, participating in the transition from existing standards to new or revised standards, for example, IFRS 4 to IFRS 17 (an International Financial Reporting Standard for accounting) for major financial institutions, and maintaining positive relationships with colleagues throughout my career.” These are all among some of his favourite aspects of his work journey. 

These efforts showcase Emmanuel’s ability to leverage his financial expertise, international trade background, and business acumen to create measurable value while strengthening operational efficiency and supporting strategic decision-making within forward-thinking organizations.

His efforts haven’t gone unnoticed either. Among Emmanuel’s proudest accomplishments are garnering recognition as the “best employee” at his firm’s year-end celebrations, in addition to consistently earning performance-based bonuses from past organizations he’s worked for. More importantly, he’s proud to have served “as a trusted and positive reference point for both customers and colleagues.” 

These acknowledgments reflect not only his technical strength, but also his reputation for reliability and integrity—qualities that have followed him from one position to the next. 

Career advice: reach out for resources

International trade is filled with resources, networks, and specialized institutions. But like many professionals entering the field, Emmanuel didn’t know how much support existed. 

“One thing I wish I knew earlier was the role of EDC (Export Development Canada) and other crown corporations to SMEs… people tend not to have an idea of resources available to them for both their business and sales expansion. This was an eye-opener for me.”

Understanding these tools (financing, insurance, risk mitigation, and global market guidance) shifted how he viewed trade and expanded what he thought was possible for Canadian businesses. 

How FITTskills shaped his understanding of global business

When Emmanuel enrolled in the FITTskills program, it marked a turning point in how he approached international trade. “These courses have helped my career significantly, especially in understanding major trade concepts. The knowledge I’ve applied so far has been invaluable.” 

He completed courses in international trade, business finance, sales, and marketing—each giving him a new lens through which to understand global operations. But one course stood above the rest: 

“International Market Entry Strategies was my favorite course. I believe this was the background to understanding the map flow of international trade. The professor who taught the course was awesome, and it was really easy to follow through the coursework and complete all assessments as at when due.”

The coursework expanded his analytical toolkit, sharpened his understanding of global competitiveness, and strengthened the strategic mindset he brings to his work today. 

Why he pursued the CITP designation

Like many professionals, Emmanuel wanted a way to formalize his expertise and stand out. “I chose to apply for the Certified International Trade Professional (CITP®|FIBP®) to compete ethically amongst other professionals in trade as well as collaborate with other great minds through the CITP community.” 

An accomplished trade professional with deep knowledge already, he views the designation as a gratifying experience. “I feel so fulfilled and honoured. It has been a long journey, so touching the finish line is rewarding to me.” 

The CITP has already begun shaping his long-term ambitions too. 

“I see my CITP designation paving the way for me in the trade industry in its entirety. I believe I stand a good chance of being an international diplomat, trade commissioner or advisor and a general business mogul when the time is right.”

A depth and breadth of skill, and a bright future ahead

In his current role at Unibrew, Emmanuel is making use of his FITTskills training, specifically in bringing in the financial aspects related to greenfield and brownfield market expansion. 

With a strong record of driving results across the banking, insurance, retail, telecommunications, logistics and food & beverage sectors and a career that spans key areas such as underwriting, business management, capital budgeting, financial analysis and reporting, risk assessment and more, there is no doubt that Emannuel will continue to lead the way in finance and trade in his current role at Royal Unibrew.  

The post CITP Spotlight: Emmanuel Ediale — Accounting Manager at Amsterdam Brewery – a Royal Unibrew Company appeared first on Trade Ready.

This article highlights some of the most promising opportunities for 2026 focusing on places with strong demand, improving infrastructure, predictable regulation, and openness to international products. Let’s get started.  

What makes a market worth entering today

Before looking at specific markets, it helps to understand exactly what it is exporters are looking for in their portfolio in a period marked by increasing uncertainty in global markets: 

Ease of doing business: Efficient customs, digital documentation, predictable rules, and supportive logistics networks can significantly reduce market entry costs. 

Openness to trade and FTAs: Countries that are part of major trade agreements often provide tariff reductions and smoother administrative processes. 

Growing import demand: Strong demographics, industrial expansion, and rising levels of consumption throughout a nation all shape import patterns. 

Low or manageable political risk: Stability helps exporters plan with confidence. For most exporters, political risk is synonymous with economic risk.  

Untapped potential: Tools such as the ITC Export Potential Map offer insights into where meaningful opportunities still exist globally. Analyses such as these are crucial in mapping out new areas for your business. 

With these criteria in mind, let’s take a look in detail at some of the markets that stand out in 2026 

Top 7 export markets to consider in 2026

1. Vietnam: A fast-growing manufacturing and consumer hub

Vietnam is one of Asia’s most dynamic economies. It continues to expand rapidly in electronics, garments, furniture, and other manufacturing sectors, which also boosts demand for imported materials, components, and technologies. 

In fact, FTSE Russell recently upgraded this country to Secondary Emerging market status, which signals increasing maturity and openness.

The OECD argues that reducing FDI restrictions, improving infrastructure, and strengthening innovation capacity are key to making Vietnam more competitive and business‑friendly.

Exporters supplying machinery, industrial inputs, food products, and consumer goods often find Vietnam to be an approachable place to start or expand their market presence.  

2. India: A rising import destination with global reach

India continues to be one of the strongest performers in global trade growth. UNCTAD’s trade trends report points to India as a high-growth market with the country also steadily increasing its imports and playing a more prominent role on the import side.

Recent trade data from NITI Aayog shows India importing more from regions such as Latin America and East Africa. This reflects the country’s growing role in global supply chains and its importance under China +1 sourcing strategies.  

Exporters of machinery, chemicals, electronics, packaging materials, and renewable energy components often gain early traction in India. 

3. Indonesia: Strong commodity exports and expanding industrial needs

Indonesia remains a key growth engine in Southeast Asia. 

According to Cybex Exim’s regional data, Indonesian exports grew 12.7% year over year, driven by palm oil, minerals, rubber, and other commodities.

As these industries expand, so does the need for imported machinery, equipment, and supporting services. 

The ITC Export Potential Map also shows opportunities across a range of goods as Indonesia continues investing in infrastructure, digital systems, and industrial diversification. 

4. United Arab Emirates and the Gulf Region: A global re-export gateway

The UAE continues to stand out as an efficient global logistics hub. Visual Capitalist’s trade analysis identifies it as one of the fastest-growing trade partners between 2019 and 2024. The wider Gulf region also shows rising import demand across food, construction materials, industrial inputs, and green technologies. 

The network of free zones, predictable regulation, and strong connectivity make it a natural entry point for exporters looking to reach Africa, South Asia, and the Middle East. Moreover, its strategic location and robust logistics network have made the UAE a central hub for the import of minerals and fuels. 

In 2026, trade continues with the UAE, but with higher costs, delays, and volatility due to the US – Iran conflict.

5. Latin America: Brazil and Mexico as high-potential Buyers

Latin America remains a strong region for companies seeking to diversify beyond traditional partners. UNCTAD’s data on global trade growth shows Mexico and Brazil performing particularly well, surpassed only by India and China.  

Brazil continues to import high volumes of machinery, chemicals, renewable energy inputs, and consumer goods as large infrastructure and energy projects move forward. Mexico benefits from its integration through USMCA and is a major importer of electronics, automotive components, and industrial supplies. 

6. Sub-Saharan Africa with a focus on East Africa: Rapidly growing consumption and infrastructure Needs

East African markets such as Kenya, Tanzania, and Ethiopia are becoming important markets for exporters to consider. East Africa’s trade outlook for 2026–2027 is cautiously optimistic, supported by stronger regional growth, infrastructure investment, and ongoing economic reforms, but the region remains vulnerable to rising energy costs, global trade disruptions, and food insecurity.

The IMF notes that higher fuel, fertilizer, and shipping prices are increasing pressure on trade balances, particularly for oil-importing economies in East Africa.

The region’s main exports are largely agricultural and primary commodities including coffee, tea, horticultural products, minerals, and textiles, while its main imports are fuel, machinery, vehicles, pharmaceuticals, and industrial equipment needed for infrastructure and manufacturing growth. 

7. South Korea: A stable, high value import market 

South Korea is an advanced and predictable market with strong import needs across machinery, electronics, automotive parts, food products, and medical goods. Its close integration with both Western and Asian supply chains makes it a reliable destination for exporters who prefer stable, mature markets. 

 South Korea’s trade outlook for 2026–2027 is moderately positive, driven by strong semiconductor exports tied to global AI and technology demand, alongside a gradual recovery in domestic consumption. However, the country remains vulnerable to slowing global growth, rising trade protectionism, and geopolitical uncertainty.

Semiconductors are Korea’s leading export, while its main imports include crude oil, natural gas, and industrial inputs used in manufacturing and technology production. 

Renewable energy opportunity zones: Brazil and Chile

The renewable energy sector deserves its own mention. Countries such as Brazil and Chile are investing heavily in solar, wind, and battery storage capacity. This creates demand for turbines, panels, inverters, energy management systems, and engineering services. 

The International Energy Agency (IEA) mention continued growth in clean energy infrastructure across LatAm, which can be a strategic diversification route for exporters in green tech, metals, electronics, and industrial solutions. 

How exporters can move from insight to action

Use data tools to validate market fit: Resources like the ITC Export Potential Map, World Bank logistics indicators, and regional trade databases help exporters ground their decisions in evidence and statistics.  

Take advantage of FTAs and tariff benefits: Trade agreements can support pricing strategy and make market entry more competitive. 

Start with a phased entry strategy: Many exporters begin with a distributor, agent, or pilot shipment, then adapt based on feedback and local standards. 

Plan for compliance and risk management early: Preparing for certifications, currency considerations, and political risk improves the odds of a smooth entry. 

Leverage trade missions and government support: Trade missions, export advising programs, and local chambers of commerce can reduce costs and help companies identify partners more quickly. 

What this means for your diversification strategy

In 2026 diversifying your export markets is as much about protecting your business as it is about growth. Vietnam, India, and Indonesia are booming with rising demand; South Korea deliver predictability and logistical efficiency; and Latin America and East Africa are fast becoming regions to watch, with growing consumer markets and long-term potential.

For exporters looking to spread risk and seize global opportunities, these markets are where the next decade of trade is being written. 

The post Top export markets to strengthen your diversification strategy in 2026 appeared first on Trade Ready.

Trade today is not the methodical industry it once was. It moves at the speed of digital platforms, automated customs systems, AI-driven forecasting tools, and geopolitical realignments that can disrupt an entire region overnight. As companies rethink how they move goods, mitigate risk, and stay compliant with rapidly changing regulations, they’re looking for employees who are more than just educated; they want people who know how to act with certainty. That’s where training is becoming an essential differentiator. 

Why trade training and international trade skills development matters more than ever

The Financial Times has warned that the global workforce is experiencing “the most significant skills realignment in decades,” driven largely by supply-chain restructuring, nearshoring, and the rise of digital trade systems. It adds that roles once learned entirely on the job now require formal training, as companies scramble to hire people who can navigate compliance demands, shifting tariff regimes, and the growing integration of AI in trade operations. 

It’s difficult to assess how many of the above skills a person has because the landscape of training is so broad. You’d be hard-pressed to find someone that has the experience (or free time) to do this within your company. 

This is where certification bodies and organizations prove valuable. They do this comprehension and skills assessment for you, so you and your business can focus on the work at hand.

Trade training isn’t ornamental

Unlike some industries, training for international trade isn’t ornamental; it’s structural. The profession is tied to a web of regulations that leave little room for improvisation, and only partial knowledge often causes more harm than good.

A misstep in customs documentation or compliance procedure can cascade into delays, penalties, or in severe cases, operational shutdowns—risks few companies are willing to take.

Instead, businesses need expertise that can confidently provide the right way of conducting importing, exporting, and global business expansion. Rigorous training brings this confidence.  

So where should a newcomer start when exploring international trade training? 

Start with Your Career Goal: What Kind of Trade Professional Do You Want to Become?

Before choosing a course or credential, job seekers need to identify the “shape” of the career they want. Trade is vast—spanning logistics, customs, compliance, policy, finance, sourcing, risk, technology, market expansion, and beyond. Each path demands a different blend of skills. 

Many new professionals make the mistake of enrolling in generic business programs, only to discover later that trade requires a far more specialized understanding of global rules, documentation, Incoterms®, duties, and the precise mechanics of moving goods and delivering services across borders. 

A simple way to orient yourself is to consider whether you want to be a generalist or a specialist. 

Generalist training: For the curious, the flexible, and business management focused

Generalist trade programs offer broad foundations across all the pillars of global commerce. They’re ideal for people who: 

• are exploring career options 
• want to work across departments 
• aim to move into strategic and leadership roles  
• need to understand how the pieces of global trade fit together to run a business 

Generalist training helps professionals see how logistics connects to compliance, how sourcing affects duties, and how Incoterms® shape contract pricing. 

It’s the kind of understanding that organizations increasingly want at the managerial level: —an ability to think in systems, not silos.

A comprehensive program like the FITTskills Program gives learners exposure to the full ecosystem of trade: market research, finance, global value chains, risk management, and more. This kind of training mirrors what the WEF describes as the demand for “holistic understanding of global operations.” 

Generalist training creates versatile candidates, the type that small and medium-sized exporters value. But they are equally desired in large organizations and governing bodies that already have established trade departments and need experts who can help them navigate turbulent times. 

Specialized training: For the detail-oriented, the analytical, and the high-demand experts

Specialized training narrows in on a specific discipline: trade compliance, customs brokerage, export controls, supply-chain technology, or trade finance, to name a few. These roles are among the most aggressively hired in 2025 and 2026. 

Why? Because the global landscape is shifting faster than ever.

New sanctions, digital customs rules, cross-border carbon regulations, and shifting tariffs have created a shortage of professionals who truly understand them.

As Bloomberg reported in its 2025 trade analysis, companies are “redesigning their supply chains in real time,” a shift that has dramatically increased demand for people who can interpret regulatory and logistics complexity. 

Specialized training is perfect for people who want to 

• become experts in compliance or customs 
• move quickly into an in-demand role 
• differentiate themselves early in their career 
• Move from an adjacent field like finance, procurement, or logistics 

While specialization can fast-track a career, it requires commitment. The rules change constantly, and ongoing training is part of the job. Some thinking about one area of expertise, might look into specialized areas like Incoterms® or international procurement, but they would be far better served if they also learned how these areas tie into the entire global landscape of trade. Not only does this give them flexibility to shift their career focus, when necessary, but it appeals to current-day employers who need employees who understand ‘all of it’ from a bird’s eye view.  

In fact, a large portion of Certified International Trade Professionals (CITP®|FIBP®) hold specialist positions, —with FITT training or the CITP designation being a highlighted asset to their role, either in their day-to-day work, or even in their job requirements from the get-go. 

The role of credentials: Why certifications matter more than ever

For years, employers leaned heavily on experience as a proxy for a candidate’s readiness. Today, that approach carries far greater risk. A single misclassified product can trigger costly penalties, and a misinterpreted Incoterm® can result in losses reaching hundreds of thousands. Without consistent, verified expertise, organizations also face serious service delivery risks—where errors, delays, or compliance gaps can disrupt operations, damage client trust, and impact overall performance. 

As a result, employers seek our recognized credentials as evidence of theory and application. They want a candidate to have theoretical knowledge, but in the applied realities of global commerce. 

The CITP designation, for example, is frequently listed as a hiring asset because it signals verified competence across real-world trade skills. Recruiters trust it because the assessment and learning outcomes reflect contemporary trade practice, not outdated academic models.

FITT’s body of knowledge (BoK), for example, uses a comprehensive set of concepts and skills for the field of international trade, developed by the Forum for International Trade Training (FITT). It serves as the foundation for FITT’s training programs and certification, outlining the essential competencies and knowledge needed by international trade professionals, including areas like market entry, trade finance, and international sales. This BoK is built with input from industry experts and is continually updated to reflect the evolving global business environment.   

Picking the right training ultimately requires clarity about three factors

1. Your desired pace of career growth

Generalist programs create long-term versatility; specialist programs open doors fast, especially in compliance, customs, and logistics tech. 

2. Your appetite for detail

If you enjoy precision, regulation, documentation, and risk analysis, specialties like compliance or customs might fit naturally. If you love big-picture thinking, planning, or market exploration, a broad trade foundation is better. 

3. The credibility of the credential

Employers increasingly look for programs with measurable, competency-based outcomes.  Designations like the CITP give candidates an advantage because they assure employers of verified practical knowledge. 

The bottom line: The future belongs those with validated, current-day skills

The global trade workforce is undergoing a generational transition. Many seasoned professionals are retiring. Supply chains are being rebuilt. Digital systems are becoming mandatory, not optional. And companies are scrambling to fill roles that didn’t exist ten years ago. 

For anyone entering the field, this is a rare moment—an inflection point where training can dramatically accelerate a career. The right program does more than teach the rules; it builds judgment, confidence, and a sense of where the world is going.

International trade has always rewarded the curious and the bold. But looking ahead, it will reward those who are trained—those who can bridge old systems and new ones, and who understand the global economy not as a concept, but as a living, shifting structure that requires skill, awareness, and adaptability. 

Curious about the most in-demand trade jobs of 2026? Read The fastest-growing international trade jobs for 2026—and how to get them 

Starting a career in trade? Explore FITTskills training to build foundational or specialized trade skills. Or learn how the CITP designation supports career credibility. 

The post How to choose the right training to start your career in international trade appeared first on Trade Ready.

Now, of course, customers can simply go to a grocery store and buy boxes at a time without a second thought to the complex nature of how they came to be in their hands. Non-perishable goods are even easier to come by, requiring the click of a few buttons to get them across countries and seas right to your doorstep. Need a specialized service from someone working in a region hundreds of thousands of miles away? No problem; technology has that solution covered. 

As trade evolves, so do the job roles that support it

Put simply, the movement of goods and services across borders has evolved at a breathtaking pace. Alongside these transformations, the teams that make global commerce possible have grown in both size and sophistication. What was once the domain of a few specialists now involves entire departments dedicated to logistics, technology, supply chain, and trade compliance, the latter being a job area that has recently seen incredible growth. 

Compliance specialization is booming

“Companies with greater than 15% expected growth allocate an average of eight people to trade compliance activities, compared to six in companies anticipating little or no growth,” states a 2025 benchmark study by Descartes Systems Group.

This increase can be attributed to many factors, from geopolitical shifts and tariff policies to shipping disruptions and natural disasters.  

The World Economic Forum also highlights this shift in their paper, Trade Compliance for Leadership, stating, “Non-compliance with new trade requirements could affect hundreds of billions of dollars of trade flows. The stakes are high: compliance safeguards business continuity, avoids supply chain disruption and can be a competitive advantage. It also mitigates the risks of penalties and reputational damage.”  

Customs roles are also becoming a C-suite discussion

Other trade roles seeing expansion include those focused on customs.

“Customs will be used as a business strategy, becoming an important C-Suite level discussion point to navigate the ever-complex international trade waters,” notes a recent article by shipping giant Maersk. And it’s easy to see why.

With a growing web of tariffs, counter-tariffs, and shifting regulations worldwide, importers and exporters must manage their classification codes, documentation, and compliance procedures with precision—or else risk costly penalties and delays. 

And then, there is AI

Virtually all areas of business, including global trade, are being touched by artificial intelligence and associated technologies. In fact, “The global AI in logistics and supply-chain market size was valued at USD 20.1 billion in 2024 and is projected to grow at a CAGR of 25.9 % between 2025 and 2034,” states a report by Global Market Insights. And these technologies are focused on improving operational cost, streamlining logistics planning, and managing real-time supply chain efficiency—but only if teams are trained on how to operate these new technologies.  

Agility, accuracy, and technology: core focuses for trade teams

All in all, in 2026, trade teams need to lean their roles toward technology, compliance, and risk planning for resiliency.  

The World Economic Forum notes in their Future of Jobs Report that “The most prominent skills differentiating growing from declining jobs are anticipated to comprise resilience, flexibility, and agility; resource management and operations; quality control; programming, and technological literacy.” 

That sets the stage for roles like trade-compliance analyst, customs strategy lead, global trade-technology architect, and import/export risk manager—titles once rare, but now increasingly common.  

A simple browse of current job postings finds top companies like Amazon hiring for Global Trade Compliance PMs or Global Customs Ops Analysts, requiring candidates to have the skills to build scalable trade-compliance programs and broker networks. While grocery chains like Loblaws are looking for Customs and Trade Analysts, roles focused on import and export clearance and risk.  

Globally, there are thousands of jobs focused on customs and international trade compliance, including many on FITT’s job board—making it more important than ever for competitive teams to make these professions a priority for successful international market expansion.

Offshoring, nearshoring, and re-shoring: strategies to mitigate volatility 

With increasingly unpredictable supply chains, companies are also rethinking where and how they allocate their trade teams. Offshoring, nearshoring, and re-shoring have become hot-topic strategies in this conversation—each offering clear advantages and trade-offs. 

• Offshoring refers to relocating production or services to a distant country, often to reduce labour costs or take advantage of specialized expertise. It can yield significant cost savings and access to global talent, but also exposes firms to geopolitical risks, shipping delays, and reduced control over quality and oversight. 

• Nearshoring involves shifting operations or sourcing to a nearby country or region—one that lies closer in geography, culture, or time zone. The proximity allows for faster communication, shorter transit times, and improved responsiveness to market shifts, though it may come with slightly higher labour and logistics costs compared to far-off locations. 

• Re-shoring (or on-shoring) brings previously relocated operations back home, offering the greatest control, supply-chain transparency, and resilience against global disruptions. However, domestic production typically comes with higher costs, and the process of re-establishing facilities and workforces can be both expensive and time-consuming. 

Together, these strategies reflect a broader recalibration of global trade—one that weighs efficiency against resiliency, and cost against certainty. What businesses choose to employ depends on their needs and goals, but they will all have to consider the risky environment in which they exist: 

“Geoeconomic fragmentation and geopolitical tensions are expected to drive business-model transformation in one-third (34 %) of surveyed organizations in the next five years. Over one-fifth (23 %) of global employers identify increased restrictions on trade and investment … as factors shaping their operations,” states the World Economic Forum in their job report, pinpointing the need for businesses to be prepared from all angles.  

Training is a unifying factor for all roles

At the heart of these workforce transitions lies a single, unifying factor—the need for continual training and upskilling. Finding employees with a new set of in-demand skills isn’t something that happens overnight. Most often, it starts with giving current teams training to upgrade their knowledge to current-day trends. 

“If the world’s workforce was made up of 100 people, 59 would need training by 2030. Of these, employers foresee that 29 could be upskilled in their current roles and 19 could be upskilled and redeployed elsewhere within their organization. However, 11 would be unlikely to receive the reskilling or upskilling needed, leaving their employment prospects increasingly at risk,” warns the WEF. 

Lora Rigutto, Partnerships and Community Lead at FITT, agrees. She personally sees how training benefits companies and employees working in international trade daily: 

“I’ve seen how upskilling and trade training can change the trajectory of both employers and employees. Many who complete FITT’s international trade training go on to work in government, policy, and business at some of the world’s leading organizations, while others use that knowledge to grow their own SMEs.”

What really stands out is the value of having a CITP®—someone with a broad, practical understanding of international trade who can connect the full A-to-Z process, from market entry and compliance to sales and growth strategy. Whether in a large enterprise or a small business just getting started, that ability to see the whole picture and bring in accredited knowledge created by business for business, along with industry best practices and frameworks—makes a meaningful difference.” 

The world is changing, but resiliency will always remain a strength

In 2025, it may seem like our world is changing faster than ever. But it’s important to put these shifts into perspective. Only 100 years ago, we were still delivering some products by horse and buggy. 50 years ago, we were sending customs documents via fax machines, and just 25 years ago, the biggest technological threat that dominated the headlines was Y2K. The point being, the world has always been in a state of rapid change, but those who flourish in it, no matter the challenge, remain aware, prepared, and upskilled for those changes. 

Curious about current job roles in trade? Below is a list of popular trade jobs that companies currently hire for: 

See active international trade job listings here 

• International Trade Consultant: Advises companies on entering new markets or expanding globally including assessing tariffs, trade agreements, and regulatory risks and recommending supply chain and market entry strategies 
• Export Manager: Responsible for planning, executing, and overseeing a company’s sales of goods or services into foreign markets; a mix of strategy, operations, and relationship management 
• Commodity Trader: Buys and sells commodities, such as agricultural products or metals, on international markets. 
• Economist: Analyzes data and develops theories related to the production and circulation of goods, services, and resources in a global context. 
• Data Analyst: Analyzes data for companies to help inform business decisions, which can include international market data.  

Logistics and supply chain

• Freight Forwarder: Manages the transportation of goods, including coordinating shipments, choosing carriers, and negotiating terms. 
• Logistics Specialist: Handles the planning and management of international logistics, including warehousing and last-mile delivery. 
• Customs Clearance Specialist: Processes paperwork for inbound and outbound shipments to ensure goods clear customs without delays. 
• Ocean/Air Export/Import Coordinator: Manages the specific details of export or import shipments via sea or air freight.  

Sales, marketing, and business development

• International Sales and Partnerships Manager: Develops and manages relationships with international partners and clients. 
• International Marketing Manager: Creates and implements marketing strategies for products and services in global markets. 
• Business Development Manager: Focuses on expanding a company’s business through new markets, partnerships, and services, often within a specific sector like freight forwarding.  

Compliance and analysis

• Trade Compliance Specialist/Manager: Ensures a company’s operations adhere to all trade regulations, sanctions, and export/import laws. 
• Customs Broker: Acts as an intermediary between businesses and government customs agencies, navigating complex regulations to facilitate the movement of goods. 
• International Trade Analyst: Conducts research and analysis to help companies make informed decisions about global markets and trade policies. 
• Policy Analyst: Researches and analyzes policy outcomes, which can be applied to trade policies and social issues.  

The post Growing global trade jobs: Top roles, skills, and trends to watch in 2026 appeared first on Trade Ready.

However, many firms, especially SMEs, need to understand them, their benefits, and how to apply them to their market diversification strategies. Let’s get into the details in this article.

What are Free Trade agreements (FTAs)? A practical definition

A Free Trade Agreement (FTA) is an arrangement or pact between two or more countries committing to reducing or eliminating restrictions on trade. According to the OECD:

“Globalisation creates opportunities for workers, consumers, and businesses and has helped lift millions out of poverty. Open markets strengthen economic resilience and diversify supply chains.”

In other words, with FTAs, participating countries can establish business rules that make everyone happy. In practice, FTAs create economic advantages by:

• Reducing or eliminating tariffs on many goods
• Simplifying customs procedures
• Opening access to services markets
• Providing rules on intellectual property, investment, sustainability, and procurement
• Making trade more predictable by establishing clear legal frameworks

For exporters, these benefits translate into competitive pricing, smoother logistics, and reduced regulatory challenges. However, when a comprehensive FTA is missing, friction or trade wars happen. For instance, the recent US-China trade wars were a result of an incomplete FTA covering all their trade partnerships.

It was also due to policies that exempted specific products from tariff-free status to protect local producers and manufacturers from foreign competition in their industries.

Types of FTAs and what they mean for your business

FTAs come in different forms, depending on the sort of arrangement or understanding between the involved parties. Here are the three most common types of FTAs and how you can benefit from them as an importer/exporter.

1. Bilateral Free Trade Agreements

A bilateral FTA is a trade deal between two countries. The goal is to reduce or remove barriers such as tariffs, quotas, or restrictive regulations. These agreements are direct in structure. Each partner sets clear terms that make it easier for their businesses to trade.

Bilateral FTAs often lead to lower costs for exporters. They also create simpler customs procedures. Companies entering a new market can gain predictable rules and fewer administrative hurdles.

2. Regional FTAs

These agreements involve several countries within the same region. The countries come together to form a trading bloc. The bloc allows goods to move more freely across its borders.

Take, for instance, the has a shared framework that supports mutual benefits among partner countries. It also helps create freer markets and stronger economic growth.

Companies with highly integrated supply chains typically benefit from Regional FTAs.

The agreements provide access to several markets under one regulatory system. Businesses do not need separate compliance strategies for each country. They also avoid extra levies when trading within the region.

3. Comprehensive Economic Partnership Agreements (CEPAs)

These kinds of agreements often cover services, investments, e-commerce, mobility of professionals, and deeper regulatory cooperation, instead of just goods. It is a free trade agreement between two countries that is more ambitious than a regular FTA, with the goal of promoting other kinds of investments while opening up trade.

The comprehensive scope of CEPAs makes them better suited to service providers, digital firms, engineering companies, or legal or consulting services. With CEPAs in place, partnering countries can facilitate mutual digital trade and open up the market for professionals

However, it’s crucial to note that the World Trade Organization (WTO) sets global rules that bind all FTAs. The regulator ensures that the advantages of an FTA are not granted to non-parties and that the agreement doesn’t lead to unfair trade practices.

How to read an FTA: A step-by-Step approach

FTAs are similar to legal documents, so they are usually voluminous, with hundreds or thousands of pages. However, they follow a similar structure. According to the EU’s Access2Markets guide:

“Reading a trade agreement becomes easier once you know what you are looking for.”

So, what should you look out for? We highlight them below:

1. Start with the Table of Contents

FTAs follow a structured format, with important chapters such as tariff elimination, rules of origin, customs procedures, investment provisions, and technical barriers to trade (TBT) being essential to review early on.

With these details, you can easily determine which parts relate to your product or service and take action, if necessary.

2. Check for tariff commitments

The tariff schedule is essential for exporters. First, find your product’s HS (Harmonized System classification ) code, then identify the correct tariff line, and check if tariff reductions are immediate or phased.

3. Understand Rules of Origin (ROO)

Preferential tariffs only apply when your goods qualify as originating in the partner country. If you do not meet the rules of origin (ROO), you will not receive the advantages of a free trade agreement, even when the tariff under the FTA is officially set at zero.

There are three common ROO tests to check:

• Value-add test
• Change in tariff classification
• Specific processing requirements

Manufacturers managing intricate supply chains may encounter challenges with rules of origin (ROO), yet accurate interpretation remains crucial. Misinterpretation, whether inadvertent or deliberate, can result in penalties, processing delays, and loss of preferential treatment.

4. Review customs and documentation requirements

Most FTAs outline simplified procedures, such as:

• Self-certification of origin
• Advance rulings
• Express shipment provisions
• Digital documentation

These details matter for operational planning and cost forecasts.

5. Check sector-specific annexes

Many industries, including automotive, pharmaceuticals, agri-food, financial services, and telecoms, have dedicated annexes that clarify specific licensing rules, standards and conformity requirements, limits on quotas, and professional mobility conditions

For service providers, these annexes often determine what you legally can and cannot do in the target market.

6. Check for services (If you’re not a goods exporter)

Service-focused businesses should also examine the core details of FTAs. These include market access commitments, national treatment obligations, intellectual property protections, and digital trade rules.

How FTAs fit into your market entry strategy

Using FTAs effectively requires understanding the law and finding legal advantages that support commercial goals. Here’s how they support market entry and diversification:

• Better Pricing Through Reduced Tariffs: Lower tariffs give you margin advantages. In price-sensitive markets, this can decide whether your product succeeds.
• More Predictable Costs and Logistics: FTAs reduce uncertainty around delays, documentation, and compliance.
• Access to New Markets for Services: Professional services such as IT, consulting, architecture, and engineering often gain new rights under FTAs.
• Safer Investment Conditions: Chapters on investment protection reduce risk for foreign-invested subsidiaries or joint ventures.
• Lower Market Entry Costs: Simplified customs, faster approvals, and recognized certifications can reduce time to market significantly.

How to apply FTAs to your business

• Identify relevant FTAs for your target markets
• Classify your product or service correctly
• Analyse tariff schedules
• Map your supply chain against rules of origin
• Prepare documentation and compliance processes
• Engage customs brokers or trade advisors early
• Incorporate FTA benefits into your market entry strategy

Common errors to avoid when using FTAs

Even experienced businesses can misinterpret FTA provisions. So, it’s best to maintain the best practices and avoid mistakes. Common mistakes include:

• Assuming all products benefit from zero tariffs
• Using the wrong HS code
• Overlooking ROO requirements
• Failing to maintain origin documentation
• Ignoring service commitments
• Assuming all FTAs cover digital trade
• Miscalculating input costs for ROO compliance

Why do modern businesses need to understand FTAs?

Trade patterns continue to shift. Geopolitical uncertainty is rising. FTAs are adjusting to these new realities. Businesses that understand how FTAs work gain an advantage.

Those who know how to read these agreements can build stronger resilience. They also position themselves for better international success.

In other words, FTAs are not just legal documents. They are strategic agreements that can shape where you source materials, where you establish distribution centres, how you price your products, and how you expand internationally with fewer complexities

Companies that have FTA analysis as a solid part of their market entry strategy are better positioned for sustainability than those that treat FTAs as negligible.

Make FTAs work for your business

FTAs are essential tools for many businesses Understanding them will better equip your business to compete globally, reduce trade costs, and enter new regions with greater confidence. That way, you can create new opportunities for growth, diversification, and competitiveness.

The post Understanding FTAs and how they apply to your business appeared first on Trade Ready.

Unfortunately, these uncertainties tend to hit small businesses the hardest. Small businesses might have thinner margins and fewer buffers in their balance sheets. They may serve customers who are finding it increasingly difficult to afford goods. Is there some practical way smaller businesses can increase their resiliency to tariff expenses, including through diversification?  

“Small business owners must plan how to respond to these new realities and the economic uncertainty ahead,” noted Rohit Arora for Forbes.

But what can that response look like for smaller businesses with less macroeconomic wiggle room?  

The real cost of tariff volatility for businesses 

Imagine a small business operating with a 10% profit margin on a product that relies heavily on international trade. A tariff increase of 20-40% on the raw materials needed to produce that product can immediately erode the margins. Small firms, dependent on long-term contracts to reduce margins, don’t always have the leverage they need to renegotiate contracts.  

If trade tensions spike, small business tariffs can have devastating impacts. 

But costs alone aren’t the only risk with tariffs. The broader tariff impacts can complicate all sorts of plans. It may be increasingly difficult to document imports and exports. Businesses may need to make new logistical decisions in response to changing costs. And if a small business has to find a new source for its products, it could upend an entire business model. 

Even if businesses can weather these storms, they can lose what created their market share in the first place.

Price competitiveness can go down. And companies may hesitate to expand to new markets because they’re uncertain about which tariffs will spike next. As the Business Development Bank of Canada (BDC) notes, “pursuing export opportunities in the EU often requires companies to navigate stringent regulations.” If you can handle these regulations, options like exporting to Europe can broaden your ability to diversify. You can think of it as “exporting risk.” 

How can small businesses handle these challenges? There are multiple items to consider that will help you build a sharper tariff strategy. 

Tariff strategy #1: Map and stress-test your supply chain 

The best thing any small business can do is understand its current supply chain. Build a map. Where are the current suppliers? What are their countries of origin? What are their shipping routes? Are there any tariff-sensitive inputs that go into making your products? These are critical questions to answer because many companies don’t realize just how many key components may originate in tariff-targeted countries. 

Next, a small business should run some stress tests.

“What happens if tariffs rise 10%? 50%?” “What if a supplier country becomes politically unstable?”

This will help you identify single-source dependencies and components without any alternative suppliers, which highlights the key risks you need to hedge against.

Tariff strategy #2: Reduce single-country dependence by looking for multi-region supplier diversification 

Now that you’ve identified the risks, diversification is the best way out. If you can source across several low-risk regions to reduce tariff exposure, you’ve already made a lot of headway. 

For example, Chile offers a highly open and stable trade regime, with low, predictable tariffs (around 6% MFN) and over 30 FTAs covering more than 65 economies, making it a strong partner to support a more diversified and resilient supply chain. 

This may require some macroeconomic and geopolitical analysis.

Look at current trade relationships and evaluate tariff history across regions with relatively stable policy environments.

For example, the EU and Chile, ASEAN and China, or the EU and Vietnam. Reviewing how these trade corridors have evolved over time can help you spot patterns in tariff exposure, policy consistency, and regional risk before making sourcing decisions. 

Tariff strategy #3: Diversify beyond suppliers by looking at multiple markets 

Diverse suppliers can help you remain resilient as a business. But what about zooming out? You may need to diversify markets if you’re going to remain tariff-proof. Multiple markets will offset your risk thanks to basic diversification: if tariffs rise with one market, your revenue can still remain stable overall. 

Expanding into additional regions, like Europe or Canada, can help spread your risk around. BDC highlights that exporting to Europe offers stable demand, for example. The downside is a heavy regulatory environment. But if you treat options like these as a part of a broader tariff strategy, you’ll realize that it’s possible to establish footholds in new markets that expand your ability to weather risk. 

Tariff strategy #4: Look for leverageable trade agreements and preferential tariff programs 

So far, the strategies mentioned have been defensive. But there are more assertive strategies for building a diversified portfolio of suppliers. 

To begin, look for any relevant free trade agreements, or unilateral preference programs, that are in place in your industry.

Are there any that reduce costs immediately? Are there unique exceptions for some products that will keep your business with a sustainable profit margin? 

You can also shift your sourcing or assembly operations to countries with more favorable agreements. Maybe the answers to the questions above aren’t favorable now. However, if you can develop a small business strategy that spans multiple countries, you may potentially benefit from lower tariffs on products assembled in specific regions.  

Tariff strategy #5: Create a real-time tariff monitoring system 

You may look at these strategies and wonder how sustainable they are if tariff conditions shift unexpectedly. It’s a valid concern. The truth is no one has a crystal ball for future tariff policy. However, you can build an advanced warning system by designating a person or a team to track tariff announcements and political developments. They may even be able to look at trade negotiations to see where specific industries may be headed. 

Look at government trade portals, international trade news, or even consider hiring consultants.

The key is to build a list of trusted sources for forecasting trade developments. You may not expect 100% accuracy, but you should look for a reliable set of sources that can decrease your risks because you feel increasingly “in the loop” for tariff changes. 

Tariff strategy #6: Price and plan for the most uncertain tariff environment 

Ever hear the phrase “hope for the best, prepare for the worst?” This is a variant of that. You may consider introducing tiered pricing strategies, or terms that allow mid-contract tariff adjustments. Customers don’t always like these, so make sure that your tariff pricing policies are clear and well-articulated at every point. 

Assess different tiers of risk and develop a strategy for each one. What happens if tariffs increase by 10%? How will you respond? And how will that response differ if your tariffs increase by 50%?  

Tariff strategy #7: Increase your operational flexibility 

The more flexible your operations are, the more quickly you can pivot if there’s a sudden tariff shift. One great starting point: modular production processes. If you can design products so components can be swapped with equivalents from different suppliers, you’ll avoid getting “locked” into any specific solution.  

Flexibility is just as important from a logistics perspective.

Can you use multiple distribution hubs (ports, warehouses, fulfillment centers) to weather a geopolitical storm?

This kind of strategy isn’t just important for tariff flexibility, but total flexibility in the face of geopolitical risks. 

Reframing tariff risks as a strategic advantage 

Tariff risks will always be there. So will the uncertainty of geopolitical risks. Global trade is shifting, and regulations are increasing. But if you can find a way to map your supply chains, diversify across both suppliers and markets, and build more flexible operational systems, you’ll shift these risks into a potential advantage. Your ability to pivot quickly could keep your prices stable in the face of future geopolitical storms, which isn’t true for every small business. 

Small businesses can’t control policy. But they can control how prepared they are for volatile policies. Build a diversification strategy that gives you some peace of mind that no matter what the next headline in international trade may read, you’re ready for it. 

The post How to build tariff resiliency into your diversification strategy appeared first on Trade Ready.