Trump Tariffs Impact Startups: Founders Lobby for Relief

Potential Economic Hardship for Small Businesses Due to Increased Tariffs

An open letter signed by 38 female founders of consumer product companies expresses concern that President Trump’s increased tariffs could severely impact small businesses.

Tariff Adjustments and Concerns

Although tariff increases were temporarily paused for 90 days for several countries, with a current rate of 10%, tariffs on goods from China have been significantly raised to 145%, building upon a pre-existing 20% levy.

The founders are urging both President Trump and Congress to reconsider these tariff increases.

Call for Exemptions or Alternatives

At a minimum, they request that small businesses be granted exemptions until affordable alternatives within the supply chain can be established.

Specific Examples of Financial Strain

Allison Luvera, founder of Juliet Wine, authored the letter and reports facing an unexpected annual bill of $200,000 due to the cost of a crucial packaging component sourced internationally, for which no U.S. equivalent exists.

Similar challenges are being experienced by other companies.

For instance, a home-cleaning brand relies on overseas sourcing for its refillable pouches, and tariffs are projected to raise the cost of this packaging by 80%.

Collective Economic Impact

Collectively, these 38 businesses generate $800 million in annual revenue and provide employment for thousands of individuals.

They emphasize that tariffs disproportionately affect small businesses.

Disadvantages Faced by Small Businesses

“Small businesses are uniquely vulnerable,” Luvera stated. “They lack the negotiating power of larger corporations, have limited profit margins to absorb increased costs, and often lack the financial resources to quickly adapt their global supply chains.”

Lobbying Efforts and Government Assistance

The group is actively encouraging other small business owners and concerned citizens to engage in lobbying efforts directed towards Congress.

They are requesting a comprehensive assessment of the impact of these tariffs on small businesses.

Ideally, they seek exemption from future tariff increases.

Alternatively, they are advocating for government support in the form of “grants, tax incentives, or technical assistance” to help U.S. small businesses mitigate supply chain disruptions caused by the current trade policies.

Notable Signatories

Prominent signatories include designer Rebecca Minkoff and Alison Wyatt of the Female Founder Collective.

Additional supporters are Emily Doyle and Mei Kwok from Dune Suncare, and Yanghee Paik of Rael.