**Washington**: A coalition of 38 female founders warns that increased tariffs under President Trump threaten the viability of their businesses, accounting for $800 million in annual revenue. They urge lawmakers for exemptions and support to mitigate rising costs linked to international trade policies.
A group of 38 female consumer product founders has voiced significant concerns over the impact of President Trump’s increased tariffs on small businesses, warning that such measures could be detrimental to their operations. This open letter, published on Thursday, highlights the challenges that these entrepreneurs face amid ongoing trade policy changes.
Trump has recently put a hold on tariff increases for a period of 90 days for several countries, maintaining the rate at 10% for most imports. However, tariffs on products imported from China have reportedly escalated to 145%, which now includes an additional levy of 20%. The implications of these increases have raised alarm among the founders, who fear that their businesses may struggle to survive.
Allison Luvera, the founder of Juliet Wine—a startup that provides upscale boxed wine directly to consumers—shared with TechCrunch the specific challenges she faces, noting that an unexpected bill of $200,000 annually for key packaging sourced overseas is a significant burden, especially as no domestic alternatives currently exist. She highlighted that her situation is not unique, pointing to a home-cleaning brand that must import refillable pouches from abroad due to a lack of immediate U.S. options, which could see production costs spike by 80% as a result of the tariffs.
The letter from this group of founders indicates that their collective businesses generate approximately $800 million annually and employ thousands. They emphasize that small businesses are disproportionately impacted by tariff increases compared to larger corporations, which possess the leverage to renegotiate supply chain contracts and the financial resilience to absorb steep cost increases.
“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,” Luvera stated in her communication with TechCrunch. This underscores the vulnerability of smaller entities in the face of significant economic shifts.
The founders are advocating for lawmakers to take action by conducting a small business assessment to better understand the economic ramifications of tariff policies. Ideally, they are seeking exemptions from these tariff hikes for small businesses. In the absence of such measures, they are requesting “grants, tax incentives, or technical assistance” to alleviate the supply chain pressures exacerbated by the current trade environment.
Among the signatories of the letter are notable figures such as designer Rebecca Minkoff and Alison Wyatt, co-founder of the Female Founder Collective, alongside Emily Doyle and Mei Kwok of Dune Suncare, and Yanghee Paik of Rael. This collective effort highlights the urgency felt by these entrepreneurs as they navigate the complexities of international trade policy and its effects on their businesses.
Source: Noah Wire Services
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