Global trade compliance is becoming increasingly complex and critical. Businesses involved in logistics, freight forwarding, and air transportation face growing pressure from constantly evolving regulations, geopolitical tensions, and rapid technological shifts. Compliance officers, trade compliance professionals, and customs brokers must navigate this intricate landscape carefully to avoid significant penalties, operational disruptions, and severe reputational damage.
In this article, we’ll highlight the five biggest global trade compliance challenges of 2025. We’ll provide real-world examples to illustrate their impact and offer actionable insights for businesses in the logistics industry.
Challenge one: Ever-changing regulations
One of the most significant obstacles in trade compliance is the continual updates to sanctions, tariffs, and export restrictions. Governments worldwide rapidly introduce new laws and regulatory measures, often with minimal notice.
For instance, in late 2024, the US Office of Foreign Assets Control (OFAC) implemented a stringent new 10-year recordkeeping requirement, significantly increasing the compliance burden for businesses. Simultaneously, the Bureau of Industry and Security (BIS) added new entities to its “Trade Integrity” watchlist, imposing fresh export restrictions that compliance teams needed to integrate into their procedures.
Non-compliance can be devastating. A notable example involved a Thailand-based company fined $20 million by OFAC for hundreds of violations involving Iran. These examples highlight why continuous education, up-to-date training, and compliance-focused technology are essential.
Challenge two: Navigating complex export control laws
Export control regulations present another major compliance challenge, particularly involving dual-use goods; products with both civilian and military applications. Countries maintain distinct export controls, making it easy for companies to misclassify goods or overlook license requirements.
A prominent case involved a US electronics manufacturer fined $5.8 million in 2024 for illegally exporting controlled components linked to China’s military. Similarly, a leading defense contractor faced a $200 million settlement due to violations of the International Traffic in Arms Regulations (ITAR). Businesses must establish rigorous classification procedures and automated license-checking systems to mitigate such risks effectively.
Challenge three: Managing supply chain risks
Supply chain compliance risks are significant due to the complexity of modern global trade networks. Companies often unknowingly interact with blacklisted or sanctioned entities, which can lead to severe repercussions.
For example, EU enforcement agencies imposed substantial fines on companies attempting to circumvent sanctions against Russia through intermediaries in Turkey and Kazakhstan. Furthermore, under the US Uyghur Forced Labor Prevention Act (UFLPA), US Customs detained $1.73 billion in shipments linked to forced labor concerns, compelling businesses to vet their supply chains thoroughly.
Companies should implement comprehensive supplier audits, third-party risk assessments, and advanced screening technologies to proactively detect and manage these indirect risks.
Challenge four: Trade disruptions due to geopolitical tensions
Geopolitical tensions continue to severely disrupt global trade compliance strategies. The US-China trade dispute has driven businesses to diversify production across multiple countries, adopting a “China+1” strategy to avoid tariffs and export controls. Additionally, emerging conflicts around the world add unpredictability to trade compliance.
The conflict in Ukraine prompted unprecedented sanctions against Russia, forcing over 1,000 Western companies to scale back or entirely halt operations there. These geopolitical events demonstrate that trade compliance professionals must remain agile, vigilant, and prepared with contingency plans to adapt quickly to shifting regulations and trade barriers.
Organizations should prioritize geopolitical risk assessment in their strategic planning, enhancing their capability to respond swiftly to changes while minimizing disruption to their operations.
Challenge five: Lack of automation in compliance processes
Despite rapid technological advancements, many companies still rely on manual processes such as spreadsheets and emails to manage trade compliance. This approach is inefficient, error-prone, and insufficient in addressing today’s complex compliance landscape.
Surveys indicate that only 8% of companies use dedicated compliance software, leaving the vast majority vulnerable to human error. Leading businesses increasingly view automation as critical, integrating advanced technologies such as artificial intelligence and machine learning to ensure accurate, timely, and scalable compliance checks.
Automation enables real-time monitoring of regulatory updates, proactive risk identification, and enhanced data accuracy, thereby drastically reducing compliance breaches. Investing in specialized software and integrated platforms is becoming essential for companies aiming to stay competitive and compliant in the evolving global trade environment.
Tackle the challenges with Be Informed
Addressing global trade compliance challenges requires proactive, technology-driven strategies and continuous vigilance. Compliance is no longer optional but integral to sustainable operations in international trade.
Is your compliance strategy prepared for these emerging and intensifying challenges? Stay ahead by watching our insightful webinar on compliance trends in 2025. Discover how our Intelligent Trade and Transport Solution (ITTS) can simplify and streamline your global trade compliance processes, enhancing efficiency and compliance security.
