I hope you have been doing okay. Obviously, a lot is going on. Normally, I pop into your inbox with advice and solutions. Sometimes, it's more helpful to acknowledge that things don't have an immediate solution and spend a moment in solidarity.
So... tariffs! YIKES. I don't have any answers, and since things are changing chaotically with lightning speed, it's hard to tell how much of a problem this will be, though it's clearly a problem now. Here are some highlights and stories I wanted to amplify.
credit to Emily Amick and Emily Ley for the photo collage
Working with Mia Galison from eeBoo was an honor, because of her strong values and confident leadership. The owner of eeBoo, a small American toy company, tells the real story here of how tariffs are destroying small businesses and how we need to act now before it’s too late. Sign the petition to support a small-business carveout, affecting your business!
When shop owners mention the tariffs on social media, some people reply to say they should be manufacturing in America. Jessie Tyree Jenness, owner of Root & Branch Paper Co., wrote an article explaining how that works for her business: Why Can't We Just Make It Here?
She says that "without serious changes made, bringing manufacturing back to the US is not a viable solution," and she breaks down some negative stereotypes about manufacturing in China. She suggests using the 5 calls app to contact your representatives to oppose the tariffs on small businesses.
The perspective of brick and mortar shop owners
Amanda Stewart of Mochi Kids has not only been getting hit with big tariff bills herself, but she stocks her shop with wonderful toys from all around the world. This post shares the emails she's been getting from the brands she carries, raising their prices, explaining how the price increases we are currently seeing will soon trickle down to consumers. This post highlights the $1200 tariff bill she recently got on $3500 of merchandise.
Similarly, Paper and Pencil Chicago received a $1200 tariff bill for products they had been selling for over five weeks.
More about the specialization available in China
Kyle Sommer of Sommer Letter Co. explains why the premise that China has treated America unfairly is wrong. She talks about how, since China is so large, it has regions that specialize in very specific areas, such as bookbinding, and very specific products, such as factories that only extrude wire for calendar and planner bindings. She also talks about the racism implicit in the "American First" mentality.
An app to add visible tariff fees to your Shopify checkout
Many American consumers think that China is paying tariffs. They don't understand that small business owners are being charged tariffs. Here is a new app by a reputable developer that lets you add a tariff fee to products. Tariff Support allows you to pass tariffs along transparently to customers and protect your margins. This may or may not be a good decision for your business, but it's an interesting option.
What about you?
I would like to hear how the tariffs are or aren't affecting your business. Will you please, pretty please, email me back to let me know how big of a problem this is for you, and what you plan to do about it (if you have any idea!)?
Q&A
Here's a reader question about starting with ecommerce, from Enzo, as answered by Arianne, Founder of Aeolidia: Q: What would you do if you were launching a new brand right now with no little to no budget for ads?
A: When you're starting a new business, it's almost always best to get organic (unpaid) traffic to your site rather than spending on ads. That's because you don't have data yet on what works and what doesn't, and you likely don't know your ideal customer very well or have nailed down the messaging you should be using to attract them. Paid ads can wait until you have some idea of what's effective for your brand.
If I were starting a product-based business right now, I would do the following:
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