Non-Tariff Barriers: Types, Examples and Impact (2026)

Non-tariff barriers, commonly referred to as non-tariff measures, are trade conditions that make international trade more difficult for businesses without levying taxes. Governments use non-tariff barriers to regulate international trade or support local industries. 

Shopify’s data shows 57% of businesses sell overseas. Nearly half (44%) of those make their first international sale within six months of starting operations. But it’s not always smooth sailing: 42% of businesses cite shipping and delivery as their biggest international obstacle.*

In this guide, learn how non-tariff barriers impact trade, the challenges and opportunities they create, and the strategies you can use to manage them successfully.

What are non-tariff barriers?

Non-tariff barriers (NTBs) include trade measures or conditions—other than a tariff or export duty—that hinder, restrict, or complicate international commerce. Examples can include import quotas, licensing requirements, product quality standards, and embargoes. 

Between 1995 and 2012, the number of non-tariff measures quadrupled, and by 2018 their trade costs were more than double those of customs tariffs, per research by ERIA. These measures can impact trade by raising costs or limiting foreign competition, and influence market dynamics. 

While non-tariff barriers are the focus here, you can learn more about navigating tariffs in Shopify’s guide to international shipping.

8 types of non-tariff barriers

Non-tariff barriers come in various forms, from import licensing requirements to technical regulations and localization policies. Here are eight common types of non-tariff measures, along with real-world examples from the US 2026 National Trade Estimate Report on Foreign Trade Barriers:

1. Licensing requirements

Import licensing requires businesses to obtain government approval before bringing certain products into a country. Some licenses are automatic, meaning they’re granted as long as the necessary documentation is submitted. Others require government review and approval before importation.

For example, India implemented import licensing requirements for certain information and communications devices, including laptops, tablets, and servers.

2. Quotas

Quotas set limits on the quantity of goods that can be imported or exported within a specific time frame, potentially influencing trade flows. These restrictions can protect local industries but may also lead to higher prices, supply shortages, or retaliatory trade measures.

Quotas are often subject to World Trade Organization (WTO) regulations, since they can distort competition and restrict free trade. However, some countries justify quotas for reasons such as food safety, environmental protection, or market stabilization.

For example, the European Union (EU) imposes quotas on certain US beef imports, citing food safety reasons. Once the quota is reached, tariffs apply. That makes additional imports more expensive and reduces access for US producers. 

Other country-based non-tariff measures of this type include:

• Japan’s quota on foreign rice 
• Egypt’s import controls on wheat products 
• Costa Rica’s quotas on fresh potatoes and onions 

3. Embargoes

An embargo is a trade restriction in which one country completely halts imports and exports with another, usually for political, security, or human rights reasons. Embargoes can have economic consequences, limiting access to goods, resources, and international markets.

The US has maintained an embargo on Cuba since the 1960s, citing concerns over human rights, lack of democratic reforms, and Cuba’s ties to US adversaries. The embargo restricts most trade, though some exceptions exist for food, medicine, and humanitarian aid.

4. Sanctions

Sanctions are targeted trade restrictions designed to achieve specific policy objectives, such as national security, human rights enforcement, or geopolitical strategy. They can range from foreign exchange controls to sector-specific bans, limiting access to goods, services, or financial systems.

Following Russia’s invasion of Ukraine in 2022, for example, the US, Canada, the UK, and EU nations restricted select Russian banks from SWIFT, the network financial institutions use to coordinate international money transfers. The move has limited the ability to move money into and out of the country. 

5. Technical barriers to trade

Technical barriers to trade (TBTs) are regulations, standards, or procedures intended to ensure product safety, protect consumers, support environmental goals, or maintain industry standards. These non-tariff measures can vary by country and may require businesses to adapt their products to meet different market requirements.

Examples of TBTs include:

• The UK’s product labeling laws
• The US’s Country of Origin marking rules on imported products 
• China’s CCC mark, obtained for electronics, appliances, and auto parts after they undergo testing by a Chinese laboratory 

6. Subsidies

Governments may provide subsidies to local businesses to enhance their competitiveness against foreign imports and encourage them to sell their goods at lower prices. Also known as financial aid, subsidies can take the form of direct payments, tax breaks, or low-interest loans.

For example, the USDA announced in 2026 plans to give $1.625 billion in financial support to eligible farmers in response to higher costs and market disruption from overseas competitors.

7. Customs procedures

Customs procedures are administrative regulations, processes, and requirements that goods must undergo when entering or leaving a country. They could include pre-shipment inspections, documentation requirements (like rule of origin), and customs valuations. 

Such procedures, while often necessary for regulatory compliance and security, can sometimes act as non-tariff barriers and create additional costs and delays for importers and exporters. Shopify brands can add HS codes and country of origin to products when shipping internationally.

8. Digital trade barriers

Digital trade barriers restrict online services and data flows across borders, often through data localization rules, cybersecurity rules, and licensing requirements. Governments may use such measures to regulate data, control digital markets, and protect national security.

For example, South Korea loosened restrictions in 2026 to allow Google to export map data after rejecting such requests for years, reportedly due to security and economic concerns. Google must employ security safeguards in exchange.

Brief history of non-tariff barriers

Tariffs can be a tool for governments to generate revenue. For example, they accounted for 50% to 90% of US federal income prior to 1913, according to J.P. Morgan, citing data from the White House. Recently, it’s been closer to 2%. 

Industrialized nations were able to transition to non-tariff barriers as they developed other sources of funding. They have been used to regulate international trade and support industries weakened by the removal of tariffs. 

In 1947, 23 countries, including the US, Canada, the UK, and Australia, signed the General Agreement on Tariffs Trade to minimize trade barriers by reducing tariffs, quotas, and subsidies. Over the years, the treaty was expanded, leading to the establishment of the WTO in 1995 and introduction of new dispute resolution mechanisms. Today, the WTO has more than 160 members representing 98% of international trade, and regulates non-tariff barriers through various mechanisms, including the Technical Barriers to Trade Agreement and Sanitary and Phytosanitary Measures Agreement.

As free trade agreements and WTO rules limited the ability of importing countries to impose tariffs, governments turned to non-tariff measures as alternative tools to regulate trade. 

Global Trade Alert’s G20 Trade Policy Factbook 2025 found the volume of G20 trade interventions in 2025 was on track to exceed 2023–24 levels.

Purpose of non-tariff barriers

Understanding the goals of non-tariff measures can provide a new perspective on their role in international trade:

• Protect domestic industries. Measures such as import quotas can protect domestic industries from foreign competition. Japan, for example, has a tariff-rate quota on leather footwear that can more than double the cost of US imports.
• Regulate quality and safety. Technical standards, among other types, ensure imported products meet specific quality criteria, like the EU’s Toy Safety Directive. Measures that protect health and safety are permitted by the WTO, however, disputes have arisen over differences in national standards. 
• Maintain economic policy flexibility. Restrictions can give governments more leeway in managing their economic policies. Export subsidies and import deposits let states adapt.
• Influence foreign markets. Countries can wield influence over foreign markets by imposing non-tariff barriers, like Australia’s import ban on energy products that originate from Russia. 
• Diversify the economy. Countries can diversify their local economies by supporting domestic industries through non-tariff barriers such as subsidies. The US, for example, has a quota system on sugar imports.

Drawbacks of non-tariff barriers

There are costs to non-tariff barriers that can impact both the issuing country and its trading partners, leading to inefficiencies and tensions in international trade relations.

“There isn’t a simple guidebook to navigate them,” says Holly Wade, executive director of the National Federation of Independent Business (NFIB) Research Center. “If businesses don’t do their homework or aren’t proactive in figuring these things out, those barriers can make it harder for them.”

Let’s take a look at the downside to non-tariff barriers:

Increased costs for consumers

Non-tariff barriers can lead to higher prices for imported goods. These added costs may be passed onto the consumer, which leads to less disposable income for other goods and services.

Broader economic and diplomatic costs

When resources are directed toward industries that are not competitive, the result can affect other parts of the economy. The US sugar import quota, for example, has led to job losses in the food processing and confectionery industries, according to the American Enterprise Institute.

Regulatory barriers and trade restrictions can also lead to diplomatic tensions between countries. When one nation imposes barriers, its trading partners may retaliate with their own measures.

Plus, as formal routes for restricted or highly taxed goods become more cumbersome or expensive due to non-tariff barriers, smuggling can become an attractive option. This undermines national and ecommerce laws and results in a loss of revenue for governments as well as for companies doing legitimate business. In the UK, for example, smuggled tobacco costs the country £1.8 billion in lost revenue each year. 

Complexity in trade

While tariffs tend to be transparent and structured, non-tariff barriers can be unpredictable and vary between markets. Unexpected licensing rules, product standards, or bureaucratic delays can increase operational costs.

In a 2025 NFIB survey small business owners rated predictable pricing slightly ahead of low costs in terms of trade-related priorities.

“The complexities around duties, taxes, customs, and shipping made buying from us cumbersome if you lived outside of the US,” says Jake Pereira, COO at Impact Dog Crates. “We knew that any complexity or difficulty on an ecommerce website leads to a shopper dropping off, so we were concerned that we were losing valuable customers.” 

Non-tariff barriers can also run up against the principles of open trade agreements. While a country may lower traditional tariffs as part of an agreement, the introduction of non-tariff barriers can cancel out the benefits. 

3 strategies to overcome non-tariff barriers

Here are ways to manage the challenges of non-tariff barriers and position your business for success in global markets:

Start small

Focus on expanding to one market at a time, prioritizing those that are most accessible. For example, the US, Canada, and Mexico have an established trade agreement known as the USMCA, with programs that make cross-border commerce between these neighboring countries easier for small businesses.

“Don’t go try and conquer the world,” Holly says. “Having too big a vision initially can be overwhelming, frustrating, and far too time-consuming.”

Shopify’s Managed Markets can also classify products with HS codes. Sidekick can help here. Ask: “Which products are missing HS codes?” before you enter a new market. 

Talk to peers

Connecting with other business owners—whether through industry groups, trade associations, or networking events—can provide real-world insights into dealing with regulatory challenges, securing reliable logistics partners, and adapting to cultural differences in business practices.

“SCORE, in particular, offers a mentoring program that matches business owners with experienced professionals in their specific areas of interest,” says Holly. “This eliminates a lot of the initial legwork—saving time and helping businesses navigate best practices for expanding their specific goods or services into international markets.”

Leverage government and trade resources

If you run a US-based business, there are a variety of federal resources available to help manage non-tariff barriers. 

“Using government resources can be valuable because, regardless of the administration, promoting US exports is always a priority,” says Holly.

Resources include:

• US Commercial Service, which offers customized services to help businesses manage the complex aspects of international trade, including non-tariff barriers
• MACMAP, which shows market access requirements and customs tariffs 
• USMCA, with advice and checklists for US businesses exporting to Canada and Mexico

Tariffs and non-tariff barriers constantly change. Consult a legal adviser to make sure you’re compliant with import and export laws when growing your business internationally.

*Survey conducted by The Harris Poll from August 22–31, 2025, on behalf of Shopify.