As the U.S. inches closer to the 2024 presidential election, financial markets are bracing for potential policy shifts — especially regarding trade. In a recent analysis, Bank of America (BofA) warns that e-commerce software vendors are among the industries most exposed to proposed tariff hikes under a possible second Trump administration.
Why Tariffs Matter to E-Commerce Tech
Donald Trump has floated the idea of broad-based tariffs on imports, potentially as high as 10% across the board. While traditional manufacturing often dominates tariff headlines, BofA’s report points out that software vendors — particularly those serving global e-commerce platforms — could be significantly impacted.
Many of these companies rely on cross-border data flows, offshore development, and international customer bases. Increased tariffs could spark retaliatory measures from other countries, disrupt supply chains, and dampen international demand — all of which are critical to the growth models of these firms.
Key Companies at Risk
The report singles out major e-commerce tech players such as Shopify, Adobe (via its Magento platform), and BigCommerce as potentially vulnerable. These platforms often operate in global markets and serve merchants who import or export goods. Any rise in import costs could ripple through their client bases, weakening overall platform demand.
Moreover, many of these companies outsource key development tasks to countries like India and Eastern Europe. If tariffs or other trade restrictions disrupt these workflows, it could increase costs and delay product development, affecting competitiveness in a fast-moving tech landscape.
Conclusion
While tariffs typically bring to mind steel and automobiles, today’s digital economy means that tech firms — including e-commerce software vendors — could be among the most affected. As BofA notes, this sector must now weigh geopolitical risk alongside innovation and growth.
