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73% of Cross-Border Shipments Face Tariff Challenges, ePost Data Finds

73% of Cross-Border Shipments Face Tariff Challenges, ePost Data Finds

Business Wire6 days ago

CYPRESS, Calif.--(BUSINESS WIRE)--Cross-border e-commerce has hit a regulatory wall that's driving up costs and catching retailers unprepared, according to a new analysis from ePost Global. The study of 15.6 million international shipments worth $421 million reveals that nearly three-quarters (73%) of product categories now fall into tariff-sensitive classifications, with customs authorities around the world significantly ramping up enforcement.
The findings from ePost's 2025 Shipping Optimization Analysis Report expose a hidden crisis brewing in global retail supply chains, with 42% of shipment value now tied to high-complexity customs categories that face intense scrutiny, including electronics, luxury goods, and food items.
"Retailers are sailing into a perfect storm of regulatory changes," said Kelly Martinez, Founder and Co-President of ePost Global. "The cross-border boom that fueled e-commerce growth is now confronting a wall of protectionist policies, with customs authorities converting what used to be routine shipments into complex compliance challenges."
The $421 million warning sign
Amid heightened scrutiny of the U.S. de minimis rule, growing tariff tensions, and increasingly strict customs enforcement across major global markets, the analysis reveals that the most valuable product categories are also the most vulnerable to regulatory complexity:
Apparel & textiles (39.2% of shipment value) – Subject to complex origin verification and Free Trade Agreement compliance
Luxury & personal items (16.8%) – Face increased value declaration scrutiny and security measures
Electronics & technology (10.0%) – Complicated by region-specific restrictions and battery safety regulations
"The rules of global commerce are being rewritten in real time," said Martinez. "Brands that thrived in the era of simplified cross-border shipping now find themselves facing a maze of regulatory hurdles that can demolish profit margins overnight if they're unprepared."
Hidden loopholes in the new regulatory landscape
The data reveals several strategic advantages for retailers who understand the new regulatory terrain:
97% of all shipments still qualify under the EU's €150 de minimis threshold, creating a critical strategic opportunity
Over 52% of product categories have average values under $20, suggesting untapped potential for consolidation strategies
Value-based shipping approaches can help retailers sidestep the most punishing tariff traps
This strategic approach becomes especially relevant as recent policy changes close loopholes that previously allowed low-value packages to enter duty-free.
The new compliance imperative
ePost's analysis reveals that retailers who systematically address four critical documentation elements – product descriptions, HS codes, declared values, and country of origin – can achieve significant competitive advantages in speed-to-customer and cost efficiency.
"What used to be back-office paperwork decisions have become make-or-break factors for international retail strategy," Martinez warned. "A single misclassified shipment or incomplete customs form can trigger cascading delays, fines, and customer disappointment that damages brand reputation."
Furthermore, Alison Layfield, director of product development at ePost Global, cautions that "defaulting on HS codes is no longer safe – your product could end up with a 25% tariff. Customs is now requiring accurate classifications, which equates to clear descriptions, correct HS codes, declared value and actual country of origin based on the manufacturer."
The complete 2025 Shipping Optimization Analysis with detailed strategic recommendations is available here.
Analysis Methodology
The data reflects customer shipment patterns tracked by ePost Global throughout 2024 and includes consolidated information across product categories, shipment values, and customs classifications. ePost Global analyzed 15.6 million shipments valued at $421 million. Categories were assessed for tariff exposure and customs complexity, and evaluated for optimization potential under international de minimis thresholds.
About ePost Global
ePost Global delivers cost-effective, global delivery solutions through strategically located processing centers throughout the United States. By combining technology and global logistics expertise, ePost Global optimizes delivery workflows, enhances visibility for all phases of delivery, and simplifies international shipping complexity.

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Industrias Unidas, S.A. de C.V. Consolidated Results of Operations for Q1 2025
Industrias Unidas, S.A. de C.V. Consolidated Results of Operations for Q1 2025

Yahoo

time32 minutes ago

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Industrias Unidas, S.A. de C.V. Consolidated Results of Operations for Q1 2025

MEXICO CITY, June 04, 2025--(BUSINESS WIRE)--Industrias Unidas, S.A. de C.V. ("IUSA" or the "Company") has announced its unaudited results for the three months ended March 31 of 2025. Figures are unaudited and have been prepared in accordance with Mexican Financial Reporting Standards ("MFRS"), which are different in certain respects from Generally Accepted Accounting Principles in the United States ("U.S. GAAP"). The results from any interim period are not necessarily indicative of the results that may be expected for a full fiscal year. Unless stated otherwise, reference herein to "Pesos", "pesos", or "Ps." are to pesos, the legal currency of Mexico and references to "U.S. dollars", "dollars", "U.S. $" or "$" are to United States dollars, the legal currency of the United States of America. Except as otherwise indicated, all peso amounts are presented herein in pesos with purchasing power as of March 31, 2025, and in pesos with their historical value for other dates cited. The dollar translations provided in this document are calculated solely for the convenience of the reader using an exchange rate of Ps. 20.46 per U.S. dollar, the exchange rate published by Banco de Mexico, the country's central bank, on March 31, 2025. Three months ended March 31, 2025, compared to three months ended March 31, 2024. The following table summarizes our results of operations for the three months ending March 31, 2025, and 2024: (Figures in Millions of Pesos) For the year ended March31, 2024 2025 Revenues 6,236.3 8,876.0 Cost of Sales 4,803.3 6,922.3 Gross Profit 1,433.0 1,953.7 Selling and Administrative Expenses 630.8 805.4 Operating Income (Loss) 802.2 1,148.3 Other Expenses - Net 51.2 21.8 Comprehensive Financing Result 63.8 34.9 Taxes and Statutory Employee Profit Sharing 180.9 290.4 Equity in Income (Loss) of Associated Companies (16.0) (2.8) Consolidated Net Income (Loss) 720.3 911.8 D&A 71.5 82.2 EBITDA 1/ 873.7 1,230.5 1/ EBITDA for any period is defined as consolidated net income (loss) excluding i) depreciation and amortization, ii) total net comprehensive financing result (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other Financing costs), iii) other expenses net, iv) income tax and statutory employee profit sharing and v) equity in income (loss) of associated companies. EBITDA should not be considered as an alternate measure of net income or operating income, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with MFRS, or as an indicator of operating performance or to cash flows from operating activity as a measure of liquidity. EBITDA is not a recognized term under MFRS or U.S. GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activity as a measure of liquidity. Our consolidated net income for the three months ended March 31, 2025, was Ps.911.8 million (U.S.$44.6 million), compared to a net income of Ps.720.3 million in the same period of 2024. This represented a 26.6% increase, quarter over quarter (Q/Q). This change is primarily due to an increase in sales and hence Gross Profit. Revenues Our net revenues for the three months of 2025 increased 42.3% to Ps.8,876.0 million (U.S.$433.82 million) from Ps.6,236.3 million in the same period of 2024. This increase was driven in part by higher copper prices, combined with an increase in volume of sales. Our costs and revenues follow copper prices very closely since the market practice is to pass on to the buyer changes in raw material prices. Our sales are primarily for customers engaged in commercial, industrial and residential construction, and their related maintenance and renovation activities. We also sell to customers engaged in electrical power generation, transmission and distribution and to the sectors of gas, water and air conduction in Heating, Ventilation, Air conditioning and Refrigeration (HVACR). Our revenues consist mainly of sales of copper-based products (tubing, wire, cable and alloys) and electrical products. By country of production, approximately 61.3% of our revenues in the three months ended March 31, 2025, came from products manufactured in Mexico and the remaining 38.7% from products manufactured in the U.S. In terms of sales by region during the three months ended March 31, 2025, we derived approximately 44.0% of our revenues from sales to customers in the United States, 51.7% from customers in Mexico and 4.3% from the rest of the world ("ROW"). Cost of sales Our cost of sales in the three months ended March 31, 2025, increased by 44.1% to Ps.6,922.3 million (U.S.$338.3 million) from Ps.4,803.3 million in the same period of 2024. As a percentage of revenues, the cost of sales was 78.0% and 77.0% respectively. We reduce our cost base through several initiatives, including plant scheduling, raw material handling, and overall manufacturing overhead costs. According to our accounting policies, we make an inventory valuation at an average purchase price. In the case of copper cathodes, an aftermath adjustment is required due to the quotation period agreed with the suppliers (M+1). This initiative allows us to hedge purchases for 30 days at no additional cost. The adjustment is recorded to the cost of sales in the month in which it occurs. Gross Profit Our gross profit in the three months ended March 31, 2025, increased 36.3% to Ps.1,953.7 million (U.S.$95.5 million) from Ps.1,433.0 million in the same period of 2024. As a percentage of sales, gross profit in 2025 was 22.0% vs 23.0% in 2024. Selling and Administrative Expenses Our sales and administrative expenses in the three months ended March 31, 2025, increased 27.7% to Ps.805.4 million from Ps.630.8 in the same period of 2024. Operating Income Our operating income in the three months ended March 31, 2025, increased 43.1% to Ps. 1,148.3 million (U.S.$56.12 million) from an operating income of Ps. 802.2 in the same period of 2024. EBITDA In the three months ended March 31, 2025, our EBITDA increased 40.8% to Ps.1,230.5 million (or U.S.$60.1million), from Ps.873.7 million in the same period of 2024. The corresponding depreciation and amortization figures are Ps.422.3 million for January to March 2025 and Ps.337.7 million for the same period of 2024. Comprehensive Financing Result The following table shows our comprehensive financing results for the three months ending March 31, 2025, and 2024: (Figures in Millions of Pesos) For the year ended March 31, 2024 2025 Interest Expense (69.4) (78.5) Interest Income 51.3 30.6 Exchange Gain (Loss) - Net 88.7 88.9 Other Financing Costs (6.8) (6.1) Comprehensive Financing Result 63.8 34.9 Our comprehensive financing result in the three months ending March 31, 2025, was an expense of Ps.34.9 million, compared to an expense of Ps.63.8 million in the same period of 2024. Taxes and Statutory Employee Profit Sharing The provision for current and deferred income taxes and statutory employee profit sharing in the three months ended March 31, 2025, was an expense of Ps.290.4 million compared to an expense of Ps.180.9 million in the same period of 2024. Consolidated Net Income Our consolidated net income for the three months ended March 31, 2025, was Ps.911.8 million (U.S.$44.5 million), compared to a net income of Ps.720.3 million in the same period of 2024. Liquidity and Capital Resources Liquidity As of March 31, 2025, we had cash and cash equivalents for Ps.6,436.8 million (U.S.$314.6 million). Our policy is to invest available cash in short-term instruments issued by Mexican and U.S. banks as well as in securities issued by the governments of Mexico and the U.S. Our cash flow from operations and operating margins are significantly influenced by world market prices for raw copper, as quoted by COMEX and the London Metal Exchange ("LME"). Copper prices are subject to significant market fluctuations; average copper prices increased 18.4% in the three months ending March 31, 2025, to $4.57 US dollars per pound from $3.86 US dollar per pound in the same period of 2024. We obtain short-term financing from various sources, including Mexican and international banks. Short-term financing consists in part of lines of credit denominated in pesos and dollars. As of March 31, 2025, our outstanding short-term debt, including the current portion of long-term debt totaled Ps.422.2 million (U.S.$20.6 million), all of which was dollar denominated. On the same date, our outstanding consolidated long-term debt, excluding current portion thereof, totaled Ps.4,129.0 million (U.S.$201.8 million), all of which was dollar denominated. Accounts receivable from third parties as of March 31, 2025, were Ps.6,205.1 million (U.S.$303.3 million). Days outstanding in the domestic market were 31 days as of March 31, 2025. 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By geographic region 69.0% of total capital expenditures were invested in our Mexican facilities and the remaining 31.0% in the U.S. You should read this document in conjunction with the unaudited consolidated financial statements as of March 31, 2025, including the notes to those statements. View source version on Contacts Francisco Rodriguez, frodriguez@ tel. 5255 5216 4028

Industrias Unidas, S.A. de C.V. Consolidated Results of Operations for Q1 2025
Industrias Unidas, S.A. de C.V. Consolidated Results of Operations for Q1 2025

Business Wire

time37 minutes ago

  • Business Wire

Industrias Unidas, S.A. de C.V. Consolidated Results of Operations for Q1 2025

MEXICO CITY--(BUSINESS WIRE)--Industrias Unidas, S.A. de C.V. ('IUSA' or the 'Company') has announced its unaudited results for the three months ended March 31 of 2025. Figures are unaudited and have been prepared in accordance with Mexican Financial Reporting Standards ('MFRS'), which are different in certain respects from Generally Accepted Accounting Principles in the United States ('U.S. GAAP'). The results from any interim period are not necessarily indicative of the results that may be expected for a full fiscal year. Unless stated otherwise, reference herein to 'Pesos', 'pesos', or 'Ps.' are to pesos, the legal currency of Mexico and references to 'U.S. dollars', 'dollars', 'U.S. $' or '$' are to United States dollars, the legal currency of the United States of America. Except as otherwise indicated, all peso amounts are presented herein in pesos with purchasing power as of March 31, 2025, and in pesos with their historical value for other dates cited. The dollar translations provided in this document are calculated solely for the convenience of the reader using an exchange rate of Ps. 20.46 per U.S. dollar, the exchange rate published by Banco de Mexico, the country's central bank, on March 31, 2025. Three months ended March 31, 2025, compared to three months ended March 31, 2024. The following table summarizes our results of operations for the three months ending March 31, 2025, and 2024: (Figures in Millions of Pesos) For the year ended March31, 2024 2025 Revenues 6,236.3 8,876.0 Cost of Sales 4,803.3 6,922.3 Gross Profit 1,433.0 1,953.7 Selling and Administrative Expenses 630.8 805.4 Operating Income (Loss) 802.2 1,148.3 Other Expenses - Net 51.2 21.8 Comprehensive Financing Result 63.8 34.9 Taxes and Statutory Employee Profit Sharing 180.9 290.4 Equity in Income (Loss) of Associated Companies (16.0) (2.8) Consolidated Net Income (Loss) 720.3 911.8 D&A 71.5 82.2 EBITDA 1/ 873.7 1,230.5 Expand 1/ EBITDA for any period is defined as consolidated net income (loss) excluding i) depreciation and amortization, ii) total net comprehensive financing result (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other Financing costs), iii) other expenses net, iv) income tax and statutory employee profit sharing and v) equity in income (loss) of associated companies. 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Kenny Denton Joins Daversa's Leadership Bench as Newest Partner
Kenny Denton Joins Daversa's Leadership Bench as Newest Partner

Yahoo

time41 minutes ago

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Kenny Denton Joins Daversa's Leadership Bench as Newest Partner

NEW YORK, June 04, 2025--(BUSINESS WIRE)--Daversa is excited to announce the promotion of Kenny Denton to Partner. As the lead partner helping early stage companies and founders find catalytic GTM talent, Kenny has proven himself as one of the sharpest and most effective talent strategists in the business. With hundreds of executive searches under his belt, Kenny has helped scale some of the most disruptive companies in tech, including OpenAI, Doppel, Scale AI, Decagon, Brex, Zip, and Poolside. He's built senior leadership teams at the VP and C-suite level, driving tangible results in sales, marketing, and customer success – exactly what high-growth companies need to win. "Kenny has built one of the most successful early stage GTM practices in the industry, consistently delivering the leadership teams that high-growth tech companies need to scale," said Paul Daversa, CEO of Daversa. "His ability to spot and deliver the right talent at the right time has been a key driver of success." At Daversa, we're built on hustle, and Kenny's rise is a reflection of the grit and determination that defines us. About Daversa Daversa is technology's premier executive search firm that builds the leadership teams for growth and venture-backed companies. Our global footprint spans 2 continents and eight offices, giving our high-performance teams visibility into the entirety of the market. We are dedicated to developing meaningful relationships with entrepreneurs, executives, and investors across consumer and enterprise businesses. Extraordinary talent is hard to find and even harder to recruit. Focusing our searches on delivering Material Impact executives is what sets us apart, and is what makes Daversa the search partner of choice. For more information on Daversa please visit View source version on Contacts Emma Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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