Consumer Startup Founders Unite Against Trump Tariffs: One Faces Shocking $200K Bill!

Small businesses are facing significant challenges due to President Trump’s increased tariffs, as highlighted in an open letter signed by 38 female founders of consumer product companies. This letter emphasizes the urgent need for action to protect small enterprises from the adverse economic impacts of these tariff hikes.

Concerns Over Tariff Increases

Recently, President Trump announced a temporary pause on tariff increases for various countries, currently set at 10%. However, tariffs on China have skyrocketed to a staggering 145%, which includes a previous 20% levy. This change poses a serious threat to small businesses that rely on affordable supply chains.

Urgent Appeal from Business Founders

In a letter published on a Thursday, these 38 female founders urged both President Trump and Congress to reconsider the tariff increases. They are calling for:

• A pause on the tariff increases until small businesses can secure affordable supply chain alternatives.
• Exemptions specifically for small businesses to alleviate financial strain.

Among the signatories, Allison Luvera, founder of Juliet Wine, shared her personal struggle. Luvera faces an unexpected annual bill of $200,000 due to her reliance on a crucial packaging component sourced from overseas, with no U.S. alternatives available.

Impact on Small Businesses

The letter outlines several critical issues faced by small businesses, including:

• A home-cleaning brand that relies on refillable pouches sourced internationally, facing an 80% increase in packaging costs due to tariffs.
• A collective annual revenue of $800 million generated by the group, which employs thousands and sources materials from both domestic and international manufacturers.

These business founders assert that tariffs disproportionately affect small enterprises. As Luvera pointed out, small businesses often lack the necessary leverage to renegotiate supply chain contracts, the financial margins to absorb significant cost increases, and the capital to swiftly adapt their global supply chains.

Call to Action for Support

This group encourages other small business owners and concerned individuals to join their efforts in lobbying Congress. They propose a small business assessment to understand the economic impact of tariffs better. Ideally, they seek:

• Exemptions from tariff increases for small businesses.
• Grants, tax incentives, or technical assistance to mitigate supply chain challenges caused by current trade policies.

Notable signatories include designer Rebecca Minkoff and Alison Wyatt of the Female Founder Collective, along with Emily Doyle and Mei Kwok of Dune Suncare, and Yanghee Paik of Rael.

For more information on how tariffs affect small businesses, visit SBA.gov or read about trade policies that impact small enterprises.