President Trump’s sweeping new tariffs have sent global markets into a tailspin. Disrupting supply chains and forcing online retailers to urgently rethink how they ship goods across borders. But for one Seattle-based startup FlavorCloud, the chaos is proving to be an unexpected growth moment.
FlavorCloud, a rising player in cross-border shipping and trade compliance, is seeing demand soar as brands scramble to navigate shifting regulations and increased costs. The startup’s platform helps e-commerce businesses manage international logistics, including duties, taxes, and customs processes—exactly the kind of operational headache that’s now front and center for global sellers.
“Suddenly, we’re very popular,” said Rathna Sharad, CEO and founder of FlavorCloud, who was named Startup CEO of the Year at the GeekWire Awards in 2024. “We’re built for this. But the speed of change right now is unlike anything we’ve ever seen.”
Sharad, whose background spans Microsoft, UPS, and the online boutique platform Runway2street, said that although the company was designed to simplify global trade for e-commerce brands, the sheer pace and scope of the recent tariff changes have been “unprecedented.”
Markets reacted swiftly to last week’s announcement, with over $6 trillion in U.S. market value erased. But behind the numbers is a very real impact on retailers and consumers alike.
According to Sharad, “Every brand is impacted in some way. It’s sweeping across all consumer goods categories—from fashion to electronics to homeware.”
One of the most disruptive changes is the removal of the de minimis exemption for imports from China, effective May 2. Previously, this rule allowed shipments under $800 to enter the U.S. without tariffs, a critical factor behind the rise of ultra-low-cost retailers like Temu and Shein. With that loophole now closed, many e-commerce players are suddenly facing new fees.
“It allowed for a lot of sellers to benefit from that cost advantage—but that model is gone now,” Sharad explained.
Even Amazon may not be immune. The retail giant recently launched Amazon Haul, a discount storefront meant to rival Chinese e-commerce upstarts. But with millions of third-party sellers sourcing products from China, the platform could feel the squeeze. “Amazon sellers are going to now pay tariffs,” Sharad noted, pointing to the ripple effect across the entire marketplace.
Adding to the pressure, Trump on Monday threatened to impose an additional 50% tariff on Chinese goods, a move that could deepen the strain on global retail operations.
Sharad says companies need to be proactive to weather the storm. She advises sellers to:
- Develop localized pricing strategies
- Explore alternative sourcing and manufacturing hubs
- Build new logistics pathways to avoid customs bottlenecks and hidden fees
While FlavorCloud helps brands solve these problems in real time, Sharad is clear-eyed about where things are headed. “Ultimately, we’re going to see rising costs for consumers. There’s no way around it.”
Founded in 2017, FlavorCloud has quietly emerged as one of the Pacific Northwest’s fastest-growing tech startups. With $19 million in funding and a team of more than 50 employees, the company currently ranks No. 130 on the GeekWire 200 list.
As global trade policy continues to shift, FlavorCloud’s cross-border shipping technology is proving essential for brands that want to stay competitive while navigating an increasingly complex global marketplace.
