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FlavorCloud CEO Rathna Sharad walks on stage to accept the Startup CEO of the Year award at the GeekWire Awards last year. (GeekWire File Photo / Kevin Lisota)
President Trump’s recent tariff announcements have roiled global markets and left companies scrambling to adapt, including online retailers that ship products across borders.
Seattle startup FlavorCloud is meeting the moment.
The cross-border shipping and compliance startup, which helps e-commerce companies manage duties, taxes, and global logistics, is experiencing a surge in demand as brands grapple with rapidly changing rules and rising costs.
“Suddenly, we’re very popular,” said FlavorCloud CEO Rathna Sharad, who won Startup CEO of the Year honors at the GeekWire Awards last year.
Sharad said the current moment is exactly what the company was built for — helping brands navigate the complexities of international trade and compliance across dozens of markets. But even with three decades of experience in global trade, she described the speed and scale of the recent changes as “unprecedented.”
“We’re built for this,” she said. “But what is really different here is just the pace at which it is happening.”
The tariff plan last week wiped out more than $6 trillion in U.S. market value, with stocks continuing to fall Monday.
Sharad said every brand is impacted in some way. “It’s sweeping across all consumer goods categories,” she said.
Sharad speaks on stage after accepting the GeekWire Award for Startup CEO of the Year in 2024. (GeekWire File Photo / Kevin Lisota)
One key change is the elimination of the “de minimis” exemption for imports from China, effective May 2. The U.S. trade rule allowed shipments valued under $800 to avoid tariffs. It’s described as a loophole for cheap products from China, fueling the rise of low-cost platforms like Shein and Temu.
“It allowed for a lot of these sellers to really take advantage of that model — and that model no longer exists,” Sharad said.
The elimination of “de minimis” could impact Seattle tech giant Amazon, which recently launched discount storefront Amazon Haul, its answer to rising competition from Chinese e-commerce giants.
There are also millions of third-party sellers on Amazon — which make up more than 60% of the company’s store sales — who source products from China and other countries.
“Amazon sellers are going to now pay tariffs,” Sharad said.
Trump on Monday threatened an extra 50% tariff on China.
Sharad advised companies to develop new strategies to avoid customs-related delays or fees; focus on creating localized market pricing; and consider alternative manufacturing locations.
Ultimately, Sharad said signs point to increased costs for consumers.
Sharad previously led online boutique startup Runway2street and worked for UPS and Microsoft.
Founded in 2017, FlavorCloud has raised $19 million to date and employs more than 50 people. The company is ranked No. 130 on the GeekWire 200, our index of top Pacific Northwest tech startups.
