The Tariff-Proof International Expansion Playbook

Los Angeles-based fine jewellery maker Angara was already well on its way to reducing its dependence on the US for sales before President Donald Trump announced his tariff plan last month, entering India at the end of last year and planning a number of international launches for 2025.

But the rapidly unfolding trade war propelled Angara to make those moves more quickly, said co-founder and chief executive Ankur Daga. The brand now expects to enter countries including Japan and Singapore at least a quarter earlier than planned.

“The US has become increasingly uncertain,” Daga said. “If we were to predict revenue at a quarter or a year or five years, it’s just so hard to do here.”

The US and China agreed earlier this week to lower tariffs on each other’s goods. But though the worst case scenario was avoided, duties are still higher than they were a few weeks ago. Dozens of other countries could see tariffs imposed in July, and a global 10 percent levy remains in place.

The prospect of higher manufacturing costs, and worsening US consumer sentiment, means new geographies are increasingly important to brands’ bottom lines. For American companies committed to their global ambitions, going overseas offers an escape from turbulence at home. To make their global expansion bets pay off, brands will have to continue to grow their network of suppliers, manufacturers and distribution partners to be closer to their new selling locations, which should be selected carefully.

“Whatever diversification you have achieved so far, you’ve got to put it on steroids,” said Anshuman Jaiswal, chief business officer at software firm OnePint, which helps global businesses manage inventory.

Going Global

With the Trump administration’s tariff plans still in flux, picking the right locations to expand into is paramount. US brands facing economic tumult at home are entering or doubling down on overseas spots where they’re already seeing demand — and with minimal exposure to tariff upheaval.

Countries where consumers are still willing to pay premium prices are particularly appealing, especially as many shoppers in the US are reaching the limit of their spending power.

Angara, for example, is targeting countries where, unlike in the US, demand for high-end gems shows no signs of slowing down. They’re already seeing results: Angara’s sales in India surpassed $1 million just six months after entering the market, Daga said.

New York-based kid and teen-centric beauty label Evereden is planning to enter the Middle East in the next year, where consumers are more apt to splurge on luxury fragrances and less likely to be deterred by price increases, said Kimberley Ho, the brand’s co-founder and co-chief executive. An added bonus? Demand for skincare and fragrances among Gen Alpha in the region is growing, too.

“There is a nine-figure opportunity from the Middle East for Evereden alone, so we are not going to let tariffs stop us from that,” Ho said.

Bulking Up DTC

With many finer tariff details still in limbo, brands are also trying to wrestle back what control they can in order to more quickly respond to an ever-changing situation.

Some are doubling down on their global direct-to-consumer businesses, where they can control everything from pricing to marketing to shipping.

The wellness brand Apothékary, for example, managed to lock in rates with its American manufacturing partner earlier this year after the value of the dollar fell, which reduced the cost of buying US-made goods in other currencies. This in turn allowed the brand to hold off raising prices on its online store across the more than 200 countries it ships to, said founder and chief executive Shizu Okusa. Having consistent prices across markets is critical for Apothékary as it looks to increase its global customer base on its direct platforms. The brand is also launching exclusive products for its online store, such as a recent collaboration with berry-maker Oishii, Okusa added.

Once established in a new market through DTC, brands can use those results to test their strength in that region before further expanding through local retail partners — regardless of tariffs.

US-based cosmetics label Merit Beauty, for example, entered Sephora UK in March (prior to tariff implementation), significantly expanding its reach in the country. While the UK economy has problems of its own, Merit was confident in its decision because it had seen two years of strong DTC sales, and British customers had been asking for a way to shop the brand in real life, Philippe Pinatel, Merit Beauty’s chief executive, said in a February interview with The Business of Beauty.

For Okusa, managing international expansion amid tariff uncertainty is also a chance to create a more efficient business in the long-term.

“I am not going to waste a good crisis,” Okusa added. “A good crisis means you’re taking stock of headcount; you’re taking stock of efficiency in your marketing; [and] you’re taking stock of your most valuable customers.”