Importance Score: 72 / 100 🔴
Increased tariffs enacted by President Trump are threatening to cripple small businesses, according to a public letter signed by 38 female founders in the consumer goods sector. These business leaders are raising concerns about the potential economic fallout from the administration’s trade policies.
Impact of Tariffs on Small Businesses
In a recently published open letter, 38 female founders have urged President Trump and Congress to reconsider the escalating tariff increases. The letter, made public on Thursday, implores policymakers to either halt further increases or, at a minimum, grant exemptions for small businesses struggling to adapt their supply chains.
While the Trump administration implemented a temporary 90-day pause on tariff hikes for some nations, setting a 10% rate, tariffs on goods from China have been significantly elevated, reaching 145% including a prior 20% levy. The letter argues that these tariffs pose a disproportionate burden on smaller enterprises.
Supply Chain Disruptions and Financial Strain
Allison Luvera, founder of Juliet Wine, a direct-to-consumer wine startup, spearheaded the letter. Luvera highlighted her own company’s predicament, noting an unanticipated annual expense of $200,000 due to tariffs on essential packaging components sourced from overseas, for which she has no domestic substitute.
The letter further illustrates the widespread impact, citing examples such as a home-cleaning product company reliant on overseas suppliers for refillable pouches, lacking readily available American alternatives. For this business, tariffs are projected to inflate packaging costs by as much as 80%.
Collectively, the 38 signatory businesses generate $800 million in annual revenue and employ thousands of workers. These companies utilize both domestic and international manufacturers for their supply needs. The group emphasizes that the burden of tariffs disproportionately affects small businesses.
“Small businesses lack the negotiating power of large corporations to revise supply chain agreements, the financial flexibility to absorb significant cost hikes, or the necessary capital to quickly overhaul global supply chains,” Luvera stated in the letter.
Seeking Relief and Government Support
The coalition is urging fellow small business owners and concerned citizens to join their advocacy efforts targeting Congress. Their immediate requests include a comprehensive assessment of the impact of tariffs on small businesses to inform policy decisions. Ideally, they seek complete exemption from these tariff increases for small enterprises. As an alternative, they are advocating for government assistance in the form of “grants, tax incentives, or technical assistance” to mitigate the supply chain challenges caused by the current administration’s trade policies.
Prominent Signatories
Notable signatories of the letter include:
- Designer Rebecca Minkoff
- Alison Wyatt of the Female Founder Collective
- Emily Doyle and Mei Kwok of Dune Suncare
- Yanghee Paik of Rael