We sat down with NRI’s VP of Business Development, Ryan Dale-Johnson, to unpack the current state of trade — from rising tariffs and shifting policies to how brands can adapt their fulfillment strategies. Whether you’re new to navigating cross-border challenges or knee-deep in duty codes, Ryan offers timely insights and practical advice to help you stay one step ahead.
Q: This year has brought a lot of uncertainty in trade. Where do things stand right now when it comes to tariffs?
RDJ: Let’s start with some good news: things in Canada remain relatively unchanged, which helps limit at least one variable in a year full of curveballs. As for the U.S., it’s been a whirlwind. Tariff conversations have gone from being the domain of customs brokers and manufacturers to something you overhear in line at the grocery store.
We seem to be nearing the tail end of the rollercoaster — and that’s meaningful. The hardest part for many brands hasn’t just been the changes themselves, but the unpredictability of when and how they’ll come. It’s one thing to prepare for change; it’s another to try building long-term strategies while the goalposts keep moving.
Right now, many of the products our clients manufacture — apparel, footwear, bags, and accessories — are seeing new tariff rates when entering the U.S. The fashion industry only accounts for about 5% of total U.S. imports, but contributes more than 25% of total duties collected. To put that in perspective, while the average U.S. tariff across all imported goods was about 2.5%, apparel has hovered closer to 14.5%.
There’s no shortage of opinions out there — and who’s to say I’m not just another voice in the mix? But we’ve gotten very comfortable reviewing Executive Orders, interpreting legal updates, and consulting closely with brokers and trade lawyers. Our best prediction? The second half of 2025 should bring more stability and fewer sweeping changes — and we all need that kind of break.
Q: What should brands be paying attention to in the current environment?
RDJ: This is the question, and it’s one more brands are thankfully asking more often. Understanding how tariffs affect your business starts with understanding your own supply chain. Where are your goods made? What are the applicable tariff codes? What does it cost you — and how might that shift with a change in sourcing?
Start by asking your manufacturing partners whether they have facilities or relationships in other countries. Know where your pressure points are — if tariffs increase by X%, what’s your backup plan? Do you change pricing? Change sourcing? Pause production? It’s not enough to know your Plan B — you need to know when to trigger it.
And keep an eye on U.S. trade policy announcements. If certain countries (like China) are increasingly in the spotlight, that’s a signal to start modeling out potential impacts.
Q: How are these uncertainties affecting fulfillment strategies for brands selling across borders?
RDJ: In a big way. One of the most commonly leveraged tools in recent years has been Section 321 — also known as the U.S. de minimis provision. It allows qualifying shipments under $800 in value to enter the U.S. duty-free, regardless of country of origin. It’s been a game-changer for e-commerce brands fulfilling from Canada, Mexico, Australia, and beyond.
But as with all good things, it’s come under scrutiny — especially when paired with goods made in China. Recent changes from Washington have eroded some of the benefits, to the point where some brands have moved away from the model altogether. That said, there’s still opportunity to leverage Section 321 — especially when your products are made outside of China — and it can be a highly cost-effective cross-border strategy when deployed thoughtfully.
Q: Given all the unpredictability, how is NRI helping clients stay informed and make confident decisions?
RDJ: We’re committed to cutting through the noise. We share timely updates, help distill complex trade policy into simple takeaways, and—most importantly—we connect our clients with professionals who specialize in this world, whether that’s a trusted broker or trade counsel. We’re not trying to be lawyers, but we know how to get you pointed in the right direction and help you operationalize change quickly.
Q: Can you share an example of a client who successfully adapted their strategy with NRI’s support?
RDJ: Absolutely. A great example is Pacmodo, a new brand we recently helped launch. Their original fulfillment plan was based in our Vancouver, BC facility — including U.S.-bound e-commerce orders. But their launch timing coincided with one of the most turbulent points in recent tariff policy updates.
We worked closely with them to shift gears quickly, offering advice and mapping out a different path. Ultimately, we helped them pivot fulfillment to one of our California distribution centers, allowing them to sidestep the tariff exposure and launch on time, with confidence.
Q: How does NRI help brands stay proactive instead of reactive when it comes to shifting trade rules?
RDJ: This is where experience counts. We’ve lived through enough trade curveballs — Section 301, pandemic disruptions, fast-moving executive orders — to know that agility only works if you’ve built it into your foundation.
We help our clients plan for multiple outcomes, understand their sourcing and cost structures, and map out logistics strategies that work across different trade environments. Whether it’s leveraging de minimis, exploring deferred-duty options, or modeling landed cost scenarios across different sourcing locations, we bring the tools and insight to help brands build strategies that flex — not break — when trade rules shift.
Q: Looking ahead, do you see more change coming, and what’s your advice for brands preparing for the next phase?
RDJ: Yes, though hopefully not with the same intensity we’ve seen in the first half of the year. Trade policy is never going to be static. It’s shaped by politics, economics, elections, and even public perception.
The best thing brands can do is build internal muscle memory around adaptability. Don’t just react — rehearse. Model out your breakpoints. Build relationships with reliable partners who will help you see around corners.
Final thoughts: In a world of uncertainty, what’s the one thing you want brands to know right now?
RDJ: You’re not alone in this. It’s easy to feel like you’re the only one whose costs are rising, or whose strategy just got blown up. But the truth is, this is happening across the board — and there are smart, proven ways to navigate it.
Lean into curiosity, stay close to your supply chain, and surround yourself with partners who genuinely care about your business. The brands that succeed long-term won’t be the ones who avoid disruption — they’ll be the ones who are ready for it.

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