International Commerce: A Comprehensive Guide for 2025

Explore how international commerce transforms global trade, enhances market reach, and boosts business growth in 2025.

With global trade policies shifting and economic uncertainty looming, expanding into new markets can feel risky. But despite disruptions, consumer demand remains strong, and many businesses continue to find international commerce opportunities.

Although it seemed like things would fall apart after the pandemic, Holly Wade, executive director of the National Federation of Independent Business (NFIB) Research Center, points out that economies have remained largely intact. “People are still buying things, and there are opportunities everywhere,” Holly says. “It’s just a matter of figuring out how to take advantage of them and learning from others who have succeeded—or not succeeded—and gaining from their experiences.”

If your domestic market is stable and you’re ready to expand, the rewards of going global may outweigh the risks. In fact, expanding internationally can diversify your revenue and protect your business from local economic fluctuations. However, it does require careful research and planning. 

Learn the basics of international commerce, key trade policies, common challenges, and strategies to successfully expand your business into global markets.

What is international commerce?

International commerce encompasses the buying, selling, and distribution of goods and services across national borders. Basically, if your business engages in a transaction—whether it’s cross-border ecommerce, outsourcing work to an international workforce, or selling products to customers abroad—it’s part of international commerce.

International commerce vs. international trade

While the terms international commerce and international trade often are used interchangeably, they have distinct meanings. 

International trade involves the exchange of goods and services across borders. It includes the import and export of goods, the provision of services in other countries, and the trade of capital, intellectual property, and natural resources. While trade is a type of international commerce, it is not as all-encompassing of a term.

International commerce includes international trade along with all activities that support trade, from the point of manufacture to the final sale. It includes:

• Financial operations, like payment processing, currency exchange, and trade loans or credits.
• Logistics, such as shipping, warehousing, and inventory management in other countries.
• Marketing, which includes adapting campaigns for different regions, languages, and consumer behaviors.
• Insurance, which protects against risks like cargo damage, product liability, and political instability.

Navigating international commerce laws and regulations

Businesses engaged in international commerce must comply with both their home country’s laws and the regulations of the countries they do business in.

For example, if your company sells products in Canada and a customer is injured, you could be in violation of ecommerce laws governing product safety and consumer protection, potentially facing legal action in a Canadian court.

Beyond national regulations, international trade agreements and treaties also impact international business. These agreements set standards for tariffs, trade restrictions, and market access. 

Some key international agreements and regulatory considerations include:

• Regional trade agreements: These agreements set trade rules between specific groups of countries. One example is the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020 to regulate trade across North America.
• Sanctions and embargoes: Governments may restrict trade with certain nations for political or economic reasons. For instance, the US enforces sanctions on Russia and Iran, limiting exports and financial transactions.
• Intellectual property protections: Global treaties help safeguard copyrights, patents, and trademarks. The Berne Convention, for example, ensures standardized copyright protections across participating countries.

4 key organizations influencing global trade

Expanding internationally means navigating regulations set by global institutions that shape trade policies, agreements, and business standards. While small business owners don’t need to be trade policy experts, understanding these organizations can help them anticipate regulatory challenges, choose the right markets, and take advantage of trade agreements.

Here are four of the key institutions that influence global trade and why they matter:

1. World Trade Organization (WTO)

As the main regulatory body overseeing international trade agreements, the WTO works to reduce trade barriers, resolve disputes between countries, and ensure that trade flows as smoothly and predictably as possible. For example, the WTO implemented the first-ever framework to govern digitally enabled trade in 2024.

If a country imposes tariffs or non-tariff barriers that could affect your business, the WTO is likely involved in negotiations to address them. Staying informed about WTO policies and disputes can help businesses anticipate changes that might affect their supply chains or market access.

2. International Chamber of Commerce (ICC)

The ICC is responsible for setting global business standards and promoting ethical, efficient trade practices. It provides guidance on contracts, dispute resolution, and supply chain integrity, making it an essential resource for businesses expanding internationally.

If you’re expanding internationally, understanding ICC guidelines can help you draft contracts, avoid miscommunications, and ensure that transactions follow globally accepted standards. Working within ICC frameworks also increases trust among international partners and customers.

3. The World Customs Organization (WCO)

The WCO develops global customs standards that facilitate smooth and efficient international trade. It works to simplify customs procedures, improve security at borders, and prevent fraud.

Customs regulations can delay international shipping, increase costs, and create logistical headaches. Understanding WCO guidelines can help businesses navigate import and export procedures more efficiently and avoid unexpected compliance issues.

4. The International Monetary Fund (IMF)

The IMF plays a role in maintaining global financial stability by influencing exchange rates and providing financial support to countries in economic distress.

Currency fluctuations can significantly impact international pricing, profit margins, and financial planning. Businesses operating across borders should be aware of how IMF policies affect exchange rates and economic stability in their target markets.

Current global trade agreements and political developments

Global trade agreements and political developments shape the business landscape, influencing everything from tariffs to supply chains. For businesses looking to expand internationally, staying informed is more important than ever.

At the same time, trade policies are constantly shifting, and uncertainty is inevitable when it comes to international commerce. “Don’t get too wrapped up, because you never know how it’s going to play out and you might find opportunities, even if it looks complicated in the news,” Holly explains. “If this is the direction you want to move in, forge ahead.”

Here are some of the biggest developments that could influence international trade dynamics in the coming years:

De minimis exemption

On February 1, 2025, President Trump signed an executive order eliminating the de minimis exemption, which previously allowed imports valued under $800 from China to enter the US duty-free. However, enforcement was paused on February 7 due to severe logistical challenges, including massive package backlogs at major shipping hubs. While the rule is not currently in effect, the possibility of reinstatement remains.

This shift could have mixed results for US small businesses. Dropshipping businesses and importers reliant on Chinese suppliers may face higher costs, longer shipping times, and new bureaucratic hurdles, potentially squeezing their profit margins. 

On the other hand, domestic retailers and manufacturers could benefit if the new restrictions reduce competition from ultra-low-cost platforms like Temu and Shein. With fewer ultra-cheap alternatives, consumers may turn to US-based sellers, leveling the playing field for small businesses that previously struggled to compete on price.

New tariffs

The Trump administration plans to increase tariffs on imports from multiple countries, including 25% on Canada, Mexico, and the EU, and 20% on China. These are intended to be protective tariffs, and small businesses may benefit domestically from reduced competition with foreign imports. However, economists warn that those tariffs on Mexico and Canada alone could cost consumers between $120 billion and $225 billion annually and contribute to inflation.

Expanding internationally may become more difficult for small businesses. Trade tensions and potential retaliatory tariffs from former key partners could create new barriers for US businesses looking to sell abroad, making global expansion more complex and costly.

That said, these plans have yet to be implemented, and the administration has previously reversed several high-profile decisions after facing backlash and operational challenges. Given this history, businesses should stay informed and remain flexible, as trade policies may shift quickly.

India-EU Free Trade Agreement

In February 2025, India and the EU committed to finalizing a Free Trade Agreement (FTA) by the end of the year. If completed, it would cover two of the world’s largest economies, making it one of the most ambitious trade deals in recent history. The agreement aims to open trade between India and the EU by reducing tariffs, streamlining regulations, and improving supply chain integration. This would increase competition for American businesses engaged in international ecommerce with either of the two countries, but it could also lead to more efficient and resilient supply chains.

Complexities surrounding international commerce

Expanding internationally is no easy feat. Businesses must navigate legal hurdles, cultural differences, supply chain complexities, and financial risks. Let’s break down these factors to help you determine if global expansion is the right move for your business.

Intellectual property

International enforcement of intellectual property (IP) laws relies on a patchwork of national laws and bilateral agreements, with enforcement varying by country. While nations like Singapore, Japan, Switzerland, and the United States have robust laws in place to protect IP, others may lack the legal infrastructure to prevent counterfeiting or copyright infringement. As a result, you’ll need to assess the risks to your brand identity and proprietary products on a country-by-country basis. 

Wherever expansion makes sense, securing trademarks, patents, and copyrights in each market is essential—but the process is rarely straightforward. Every country has different registration systems, legal standards, and approval timelines, which can delay market entry and increase costs. Even after obtaining legal protections, enforcing them can be costly and time consuming if a business violates your IP.

Cultural differences in business practices

Succeeding in international commerce requires more than just translating your website or learning a few new phrases—it demands a deep understanding of cultural norms that influence communication, etiquette, and consumer behavior. 

Here are a few cultural factors to consider as an international ecommerce business owner:

• Communication styles: The way brands communicate with customers varies across cultures. In Germany, shoppers prefer direct, fact-based marketing that focuses on product quality and function. In contrast, Japanese marketing often relies on emotional appeal, storytelling, and building long-term brand trust rather than aggressive sales tactics.
• Business etiquette: Customer service expectations and professional interactions vary across cultures. In France, personalized service and rapport-building are highly valued, whereas in South Korea, a formal and respectful tone—both in messaging and customer support—is essential for building trust.
• Consumer preferences: To stay competitive, businesses must tailor marketing strategies, pricing, and product offerings to each market. For example, Chinese consumers frequently shop through super apps like WeChat, while American shoppers are more likely to purchase directly from brand websites or marketplaces like Amazon. (Both options are available on Shopify.)

Investing in cultural research and localization will give your business a competitive edge when expanding into new markets.

Supply chains and logistics

Supply chains and logistics are among the most complicated aspects of international commerce. The speed and ease with which goods flow through various ports will depend entirely on the infrastructure available in the port’s country. 

Additionally, major international events can have a huge impact on the movement of cargo. It is crucial for any small business owner engaging in international commerce to stay informed on global economic and political developments that could affect their supply chain and delivery timelines.

Taxes, duties, and tariffs

The products and services you buy and sell in various countries will likely be subject to certain taxes, duties, and tariffs. 

For example, products your US-based small business sells in the United Kingdom will be subject to a 20% tax charged on most goods sold in the country. 

• Duties are indirect taxes imposed on the consumer of imported goods—so if you are selling a product in a country with high duties, you’ll want to consider that when pricing the product for that market.
• Tariffs are taxes applied by a country on specific goods imported from a specific country. Tariffs are meant to protect domestic production by raising the price of certain goods imported into a country. 

Dispute resolution

It can be difficult to resolve legal disputes in the context of international commerce, because all countries maintain their own sovereign sets of laws and have their own court systems for enforcing them. 

In countries that enjoy significant legal interplay with each other, like the United States and Canada, it is relatively easy to call citizens of one country into court to answer for damages inflicted in the other. When damages are of a criminal nature, there are also extradition treaties in place between some countries that further facilitate this process.

Elsewhere, it can be exceedingly difficult to sue a citizen of another country in your home country of operation. For example, it’s hard for US companies to sue Chinese nationals for copyright and trademark infringement. Chinese nationals are not obligated to answer lawsuits in US courts, and it can be difficult to locate and serve them with a complaint in their country.

How to grow your business with international commerce

With all the complexities we’ve discussed, expanding globally may seem daunting. These international ecommerce strategies can set you up for success. 

Talk to your peers

Building a network of experienced peers can help you avoid common pitfalls, make informed decisions, and expand with greater confidence. “Talking to other businesses similar to yours can help you see where they’ve expanded internationally and what has worked for them,” says Holly. Even those who have been unsuccessful can be helpful. “Learn from someone’s mistakes. They could coach you on how to navigate it better than they did,” she says.

When speaking with experienced business owners, consider asking questions like: 

• Are there things I should be looking out for given recent developments? 
• What has your experience been working with wholesalers, customs, or the tax system?
• Who should I contact for guidance or partnerships?
• How did you handle these conversations and negotiations?

Identify the right market 

Expanding internationally starts with choosing the right markets for your target audience. 

To decide where to expand, consider factors such as:

• Natural resources: If your business depends on specific raw materials, look for countries that specialize in them. For example, Canada is a major lumber supplier, while Portugal has a thriving fishing industry.
• Geographic benefits: A country’s location can affect trade efficiency. A long coastline, like Chile’s, supports strong maritime trade, making it easier to import and export goods.
• Skilled workforce: Countries like South Korea, Sweden, and Israel have highly educated workforces, which can be beneficial if your business requires specialized skills or manufacturing expertise.
• Trade negotiations: There are countries that will be easier to get into than others, depending on negotiations. 

That said, the easiest first step for many US businesses is to look closer to home. “For most small businesses in the US, selling to neighboring countries like Canada and Mexico is the easiest option,” Holly notes. “They’re simpler to navigate, easier to travel to, and have programs in place that make exporting more accessible for small businesses."

Optimize your online presence 

Shoppers are often cautious when purchasing from unfamiliar businesses, especially across borders. “Because there’s so much fraud and things like that, international customers need to feel very comfortable working with you,” says Holly. “Making your website professional and communicating as openly as possible goes a long way in fortifying trust.”

Your website will need to make policies—such as international shipping costs and return policies—clear and transparent. You’ll also want to localize website content by setting up translation options and displaying prices in local currencies.

Of particular importance is offering payment options that make international purchases seamless. Ensure your website supports widely used global payment methods, such as PayPal, credit cards, and digital wallets, so customers can complete transactions with confidence.

And finally, make sure customers know how to reach your support team. Providing multiple contact options, such as email, live chat, or phone support with international-friendly hours, can help build trust and improve the buying experience.

Take advantage of free or low-cost resources

Expanding into international markets doesn’t have to be expensive. “There are a lot of resources for helping small businesses reach markets outside of the US that are free or very inexpensive,” says Holly. “Whether it’s through the SBA, SCORE, the chamber of commerce, or the Department of Commerce’s Gold Key Service program, there are programs that can be hugely helpful.”

Government agencies and business organizations offer guidance on export regulations, market research, and connecting with potential buyers. Beyond government programs, many industry associations and trade groups also provide insights, networking opportunities, and country-specific market data. By leveraging these resources, businesses can reduce risks, gain valuable knowledge, and establish a strong foundation for international growth—without stretching their budget.

Get familiar with the market

Before expanding internationally, take the time to truly understand the country you’re considering. “Being familiar with the landscape before diving in is a huge step in the right direction toward feeling comfortable, finding opportunities, and understanding how they communicate,” says Holly. "Knowing your audience helps you avoid missteps."

Connecting with small business owners who have successfully entered the market—or even speaking with domestic entrepreneurs—can provide valuable insights into what it takes to succeed. If possible, visit the country to experience firsthand how people interact and do business. 

Enlist an expert

Attorneys and accountants can be expensive investments, so Holly recommends holding off on hiring one until you have a firm plan. Instead, focus first on understanding your target market and developing a clear direction. “There’s no reason to spend money upfront until you have a basic understanding and a direction that makes sense for exploring market opportunities,” she explains.

When the time comes, it’s crucial to work with professionals who have experience handling the global marketplace for small businesses—you don’t want to be someone’s guinea pig. A specialist in international commerce can help you navigate tax regulations, trade compliance, and contract agreements, reducing the risk of costly mistakes.

That said, it’s still useful to keep your main team involved. “If you already have an accountant or tax preparer who knows your business inside and out, it might be worthwhile to bring in someone else to help with the international side of things while keeping your current accountant for everything else,” Holly advises. “That existing knowledge of your business is incredibly valuable.”

📚Learn more: International Marketing: Strategies To Gain a Competitive Edge

International commerce FAQ

What are the challenges of international ecommerce?

Although international commerce presents exciting growth opportunities, it also comes with significant challenges, such as cross-border logistics, tariffs, non-tariff barriers, and compliance complications.

What is an example of international commerce?

One example of international commerce is when a company in the US exports goods to a company in China through a global marketplace. This would involve the exchange of goods or services between two or more countries.

What is international business trade and commerce?

International business trade and commerce is the buying and selling of goods and services between two or more countries. It involves the transfer of resources, such as capital, labor, technology, and goods and services across international borders. International business trade and commerce also involves the movement of people, such as immigrants, tourists, and business travelers.

Is international trade a commerce?

Yes, international trade is a type of commerce. It is the exchange of goods and services between import and export markets and is an important part of the global economy.