Tariff Impact On Global Etail

Hello Reader,

As we step into the most happening part of the year, the world of Etail is scrambling to navigate the challenges of global tariffs. This edition of GH Pulse explores how the ongoing tariff wars are reshaping global commerce and more.

The landscape of global retail is increasingly getting influenced by geopolitical tensions, rising tariffs, and evolving consumer demands in today’s hyper-connected world. To counter these challenges, many brands are shifting their sourcing strategies—adopting near-shoring and supplier diversification to neutralize cost increases and remain competitive.

In the GCC and India, particularly, brands are refining their assortment strategies, leveraging demand sensing technologies, and establishing regional capability centres to adapt to these new realities. One notable trend spearheaded by CEPA (Comprehensive Economic Partnership Agreement between the UAE & India) is mitigating this shock through a surge in cross-border trade between the two regions. E-commerce transactions between India & GCC have increased by 20-25%, particularly in sectors such as fashion, electronics, and beauty. The trade volume between the two regions has already reached a staggering $100 billion, with the potential to touch the $250 billion mark by 2030.

The cross-border momentum between GCC and India is also fuelling the expansion of Indian brands into new markets, tapping into the consumption potential and affinity of the growing Indian diaspora in the GCC, which numbers over 30 million.

As retail rallies to prepare for a revenue boost, brands that utilise real-time AI-driven insights, omnichannel strategies, and strategic cross-border expansion will be able to navigate the complexities of the retail landscape seamlessly, ensuring sustained growth as they move into 2026.