Donald Trump’s economic plan is at the forefront of business news the world over. In these early stages, as people reel from the result of one the world’s most controversial elections, nobody can really specify how Trump’s policies will affect America’s trade markets.
Currently, Trump’s protectionist policy of tariffs on imported goods and restrictive quotas contradicts the neoliberalism that has so far shaped his career. Nevertheless, he is passionate about protectionism in America, and it does form some immediate barriers for international trade in sectors such as agriculture and clothing.
Trump believes that previous America trade deals have meant that hard working Americans have been ‘sold out’. Despite people’s reservations about the impact of a protectionist policy, Gary Hufbauer, Senior Fellow at the Peterson Institute for International Economics has outlined how the President of the USA has ‘enormous powers’ to act ‘unilaterally’ when raising tariffs and forming his own trade policies.
Trump’s decision to opt out of NAFTA will have some major impacts on importing and exporting for businesses in North America. Across the pacific, Trump has shown his contempt towards China due to America’s ‘$336 billion trade deficit’. Whilst some have predicted Trump’s presidency to become a ’double-edged sword for global growth’, developing the right market strategies will ensure businesses succeed in these tumultuous times ahead.
Most of these strategies are already in place as we consistently move forward with digital developments and adapt to government changes and legislation. It is important that businesses continue to utilise such strategies in order to hold a place in the competitive markets. Adopting strategies such as The Mix – Thrive Digital’s definition of market, brand and website – will ensure that your business can succeed in online exporting.
As America becomes an increasingly difficult market to tap into, ecommerce export strategy will become increasingly important – you need to ensure that you are competing properly. Think carefully about your market, your brand and your website. International e-commerce growth is not right for everyone, but with clear objectives and the right product, together with a realistic budget and desired outcomes, there is no reason to say that your business cannot crack the American market, even as it becomes more protectionist.
Market analysis and research will play a major role here in sussing out whether or not your product can succeed. We know that customers do not import from other countries if they can purchase the same product domestically for the same price or less. It is therefore important to be different in the American market, rather than focusing on being cheap. Strong branding and a carefully developed website to suit America’s user needs will come into play here.
Offering a different product may result in selling at a higher price, but if you’re really competing, and really offering something unique to customers, then a higher priced product should have a minimal affect on sales for your business. Products that are truly different and desirable tend to have far lower price elasticity than generic products. Even with increased tariffs, selling a differentiated product will stand you in good stead.
For more information on how Thrive Digital can help your business develop its international e-commerce, you can now download our latest guide: Is Export Led E-commerce Growth Right for My Business?
We are also currently hosting workshops to help businesses form a plan and utilise The Mix. Speak to us today to get involved.