According to an open letter signed by 38 female founders of consumer product companies, small businesses may suffer significantly due to the increased tariffs imposed by President Trump. Although Trump has temporarily halted tariff increases for 90 days at a current rate of 10% for several countries, tariffs on China have risen to 145%, which includes an additional 20% levy.
In the letter released on Thursday, these entrepreneurs called on Trump and Congress to reconsider the tariff hikes until small businesses can secure affordable supply chain alternatives. If this is not feasible, they are advocating for exemptions for smaller enterprises.
Allison Luvera, the founder of Juliet Wine, a company that markets premium boxed wine directly to consumers, penned the letter. Luvera explained to TechCrunch that she is unexpectedly facing an annual expense of $200,000 due to sourcing a crucial packaging component from overseas, with no domestic options available.
The letter highlights similar challenges faced by other companies, including a home-cleaning brand that relies on importing refillable pouches due to a lack of U.S. suppliers. The tariffs could inflate the cost of this packaging by as much as 80%.
This group of 38 women reports that their businesses collectively generate $800 million each year and provide employment for thousands, sourcing materials from both domestic and international suppliers. They emphasize that small businesses are disproportionately affected by these tariffs.
“Small businesses, unlike large corporations, do not have the leverage to renegotiate supply chain contracts, the profit margins to absorb drastic cost rises, or the necessary capital to quickly adapt global supply chains,” Luvera noted.
The signatories are rallying support from fellow small business owners and anyone concerned about the economic repercussions. They are requesting an assessment of the impact on small businesses to inform government decisions and ultimately seek exemptions from these tariff increases. If exemptions are not granted, they are advocating for “grants, tax incentives, or technical support” to assist U.S. small businesses in addressing the supply chain issues arising from Trump’s trade policies.
Noteworthy signatories include designer Rebecca Minkoff and Alison Wyatt from the Female Founder Collective, along with Emily Doyle and Mei Kwok of Dune Suncare and Yanghee Paik of Rael.
