Small businesses can be printed under President Trump’s increased tariffs, according to an open letter from 38 female founders of consumer products.
While Trump stopped its tariff increase for 90 days for different countries – setting the rate to 10%for now – China increased to 145%, which includes the previous 20%tax.
On the letter, published on Thursday, these founders asked Trump and Congress to withdraw tariff growth, at least until small businesses find affordable alternatives to the supply chain. In short, they want exceptions for small businesses.
The letter was written by Allison Luvera, founder of Juliet Wine, a startup that sells boxed wine richly rich to consumers. Luvera tells Techcrunch that she faces a surprise bill of $ 200,000 every year because she is buying a major component component from abroad and has no US alternatives.
The letter documents some other such problems, such as a home cleaning brand that should emanate its overseas rechargeable bags for lack of immediate US options. Tariffs threaten to increase the costs of that packaging by 80%.
Group of 38 say their businesses generate $ 800 million a year, hire thousands, and resource supplies from domestic and international producers. They indicate that tariffs sit more in small businesses.
“Unlike large corporations, small businesses do not have the lever to renegotiate supply chain contracts, limits to absorbing steep cost, or capital required to rapidly reconfigure global supply chains,” Luvera wrote.
This group wants other owners of small businesses – and anyone else worried about economic impact – to help them lobby the Congress. They are looking for a small business assessment – so the government knows the impact. Ideally, they would like small businesses to be excluded from such tariff growth. Failing that, they are lobbying for “grants, tax incentives or technical aid” to help small businesses solve their supply chain pain caused by Trump’s trade policies.
Among the signatories is designer Rebecca Minkoff and Alison Wyatt of the founding female founder. Others include: Emily Doyle and Mei Kwok to Dune Suncare and Rael’s Yanghee Paik.
