Small Business Leaders Sound the Alarm on Tariff Hikes: One Faces $200K Packaging Shock
38 Female Founders Unite to Oppose Sharp Increases in U.S. Import Duties
A coalition of 38 women-led consumer product startups is calling on U.S. policymakers to reconsider recent tariff hikes under former President Donald Trump’s trade policies. In a letter made public on Thursday, these entrepreneurs warned that the steep import taxes could have devastating consequences for small businesses that lack the financial resilience of larger corporations.
China Tariffs Reach 145% While Others See Temporary Relief
Although President Trump delayed the full implementation of tariff increases for a number of countries—setting most at a provisional 10%—import duties on goods from China have surged to an eye-popping 145%, incorporating a previous 20% surcharge. These intensified trade barriers, the founders argue, unfairly penalize businesses still grappling with pandemic-era supply chain disruptions.
A $200,000 Annual Blow to a Wine Startup
Allison Luvera, founder of Juliet Wine, which offers premium boxed wine direct-to-consumer, penned the open letter and shared her personal struggle with TechCrunch. According to Luvera, a crucial packaging component sourced internationally now faces such steep tariffs that her company is staring down an unexpected $200,000 yearly bill—a cost she says she cannot avoid due to the lack of domestic alternatives.
Packaging Costs Could Skyrocket by 80%
Other startups cited in the letter report similar challenges. One eco-conscious home cleaning brand mentioned that its refillable pouches must be sourced overseas, as U.S.-based suppliers aren’t yet available. The new tariff rates could drive the cost of that packaging material up by 80%, severely impacting pricing and margins.
$800 Million in Revenue and Thousands of Jobs at Risk
The 38 businesswomen behind the letter represent companies that collectively generate $800 million in annual revenue and employ thousands across the United States. They emphasized that smaller enterprises are disproportionately burdened by trade policies designed with larger corporations in mind.
“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,” wrote Luvera in the letter.
A Call for Exemptions, Support, and Government Awareness
The group is urging the administration and Congress to reconsider the tariff approach, or at the very least, to offer exemptions for small enterprises. If exemptions aren’t feasible, they’re proposing alternative support in the form of grants, tax breaks, or technical assistance to help businesses transition their supply chains.
They are also lobbying for a “small business assessment”—a process that would allow government bodies to evaluate the real economic impact of trade policies on smaller companies before implementation.
Prominent Founders Join the Fight
Signatories of the letter include well-known entrepreneur Rebecca Minkoff, co-founder of the Female Founder Collective, alongside Alison Wyatt, as well as startup leaders Emily Doyle and Mei Kwok of Dune Suncare, and Yanghee Paik of Rael.
The letter closes with a rallying cry for others in the small business community—and concerned citizens more broadly—to join their advocacy efforts in urging the federal government to take action that preserves innovation, competitiveness, and entrepreneurship in the consumer product space.
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