A coalition of 38 female founders from the consumer products sector has united to express serious concerns regarding the implications of President Trump’s tariffs on their businesses. Lucky for us, Allison Luvera, founder of Juliet Wine, wrote an evocative letter. She shines a light on the dangerous new terrain that small businesses are journeying through due to trade policies that upend their supply chains.
Juliet Wine, which focuses on gourmet boxed wine, sells direct to consumer. These tariffs have devastated the company and its business. Together, this group of 38 founders currently produces about $800 million a year in economic impact and supports thousands of jobs across the country. Their businesses are extremely reliant on domestic and international manufacturers for raw materials. This dependence places them at the mercy of shifts, in this case due to tariff hikes.
The letter goes on to elaborate on six key problems brought about by Trump’s trade agenda. A fascinating opportunity presents itself to a home-cleaning brand. They currently have to import their refillable pouches because no other refillable pouch is viable in the U.S. marketplace. As scary as it sounds, it is only the beginning for incredible founders like Emily Doyle and Mei Kwok of Dune Suncare, and Yanghee Paik of Rael. They cannot source their materials or predict their costs due to these tariffs.
Last month, President Trump announced a 90-day moratorium on tariff increases for several nations, lowering the overall tariff rate to 10%. For China, the opposite was the case, with their all-in tariff rate tripling to 145% from having been at just 20%. This steep increase further complicates the landscape for small businesses that are truly at the mercy of imported goods.
It’s been a tough financial year for Luvera. Her company has to import some key packaging components from overseas, creating an unexpected annual cost up to $200,000 because there are no viable alternatives produced in the U.S. She emphasized the plight of small businesses in her letter:
“Unlike large corporations, small businesses lack the leverage to renegotiate supply chain contracts, the margins to absorb steep cost increases, or the capital required to rapidly reconfigure global supply chains.” – Allison Luvera
To combat these challenges, the founders are lobbying for support in the form of grants, tax incentives, or technical assistance. In defense of this partisan and procedurally dubious package, supporters claim that these measures are needed to address the burdens created by increasing costs and supply chain issues.
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