Yesterday, CI shared a number of comments from Fintech executives sharing their opinions on President Donald Trump and his “Liberation Day” tariff policy.
The President signed an Executive Order addressing what is described as “structural asymmetries,” which will “no longer be tolerated.”
The CEO of PXP, a payments Fintech, Kamran Hedjri, said new tariffs will push up the cost of imported goods operating in cross-border environments, challenging pricing strategy and profitability.
“With international supply chains under strain and trade becoming more expensive, businesses are reassessing everything from product sourcing to transaction optimisation,” said Hedjri. “In this volatile environment, payments can serve as a strategic lever. For retailers processing large volumes of transactions, small inefficiencies can rapidly become costly. Unified commerce solutions that integrate payments across channels can help businesses cut costs, improve authorisation rates, and optimise routing, ensuring that every transaction supports their bottom line.”
He stated that faster settlements become crucial as working capital is squeezed. At the same time, risk tools can reduce fraud and chargebacks.
Robin Anderson, Head of Product Management at Tribe Payments, said that Liberation Day Tariffs targeting low-cost, direct-from-China e-commerce represent a seismic shift for cross-border commerce.
“Merchants shipping into the US must now factor in longer customs processing times, higher fulfilment costs, and the likely increase in customer service issues related to unexpected duties. With cross-border tariffs set to rise, the cost of international goods and services will climb – and merchants are already feeling the pinch. For businesses operating across borders, the increase in duties is not just a logistical headache, but a financial one, threatening already narrow margins and forcing a rethink of their operational strategies. For online sellers, the knock-on effects could include reduced cart conversions, payment disputes, and an uptick in chargebacks as shoppers react to unfamiliar charges or delivery delays.”
Anderson echoed Hedjri’s sentiment that intelligent payments have become an essential competitive edge.
CTO and co-founder of PayFuture, Zaki Farooq, said the reintroduction of US tariffs on low-value foreign imports, including a 30% tax on all sub $800 orders [previously these orders were exempted from any tariffs], plus steeper rates for China and the EU, threatens to upset the landscape for cross-border trade.
“With Shein and Temu alone accounting for nearly 600,000 daily US-bound parcels under this scheme, the impact on digital-first retail is massive. Higher prices and longer delivery times may frustrate customers, leading to more refund requests and chargebacks unless expectations are properly managed.”
Farooq said that while tariffs may be out of control, improving approval rates, addressing settlement delays, and lowering fees can mitigate some of the challenges.
Sharing his thoughts on crypto, Ruslan Lienkha, Chief of Markets at YouHodler, said it was interesting that Bitcoin showed a slight increase in volatility during President Trump’s announcement, and Bitcoin continues to trade within the same range as before.
“While Bitcoin has sometimes decoupled from traditional markets, it generally follows the sentiment in equities, particularly during risk-off periods. Given the negative outlook in stock markets, we anticipate that selling pressure may also extend to cryptocurrencies, though we do not expect a dramatic selloff in the short term.”
Sergei Gorev, Head of Risk, also at YouHodler, said that as US markets crater, it will be tough for crypto markets to be positive if the decline in exchanges continues.
“The leading indicator of the increasing pessimism of investors is the regular updating of the price minimum of the ratio of ETH to BTC. And the continued growth of the dominance of BTC capitalization relative to all other crypto products. This fact also highlights investors’ uncertainty about the future of the crypto space. Until the S&P 500 index returns above its 200-day moving average again, it may be risky to invest in cryptocurrencies.”
Venture capitalist Mark Pearson, founder of Fuel Ventures, said there is a strong case for the UK to respond to the “punitive tariffs.”
“It’s all for the US to benefit here, and I don’t see what the benefit for the UK is. We seem to be in a corner like a lot of other countries, and it’s not a good position to be in to negotiate, is it? I really think Trump’s doing this as a big negotiation tactic. Without these tariffs, there would be no conversation, business as usual around the world. He’s really leveraging the US muscle; they’ve got the power,” said Pearson.
He declared that the UK needs to retaliate.
“You can’t go on forever. If you back down, you’re in a very weak corner position with the US making the rules and everyone else just abiding by it. We can’t have that.”