Small businesses could be crushed under the largest tariffs of President Trump, according to An open letter by 38 founders of female consumer products.
While Trump He paused his rate increases for 90 days for several countries, establishing the 10% rate for now – China was collected at 145%which includes the previous 20%tax.
In the letter, published on Thursday, these founders urged Trump and Congress to retreat the rate increases, at least until small businesses can find affordable supply chain alternatives. In the absence of that, they want exemptions for small businesses.
The letter was written by Allison Luvera, founder of Juliet Wine, a startup that sells wine in exclusive box directly to consumers. Luvera tells TechCrunch that he faces a surprise bill of $ 200,000, annually, because he is buying a key packaging component abroad and has no US alternative.
The letter documents some other similar problems, such as a house cleaning mark that must obtain its rechargeable bags from abroad due to lack of immediate options from the United States. UU. Tariffs threaten to increase the costs of that packaging bit by 80%.
The group of 38 says that their businesses generate $ 800 million annually, use thousands and supplies of origin of national and international manufacturers. They point out that tariffs land more in small businesses.
“Unlike large corporations, small businesses lack the leverage to renegotiate the contract chain contracts, the margins to absorb the increases in pronounced costs or the capital required to quickly reconfigure the global supply chains,” Luvera wrote.
This group wants other small business owners, and any other person concerned about economic impact, helps them to press Congress. They ask for an evaluation of small businesses, so the government knows the impact. Ideally, they would like small businesses to be exempt from such rates. Unable to, they are pressing for “subsidies, tax incentives or technical assistance” to help small US businesses to solve their supply chain pain caused by Trump’s commercial policies.
Among the signatories is designer Rebecca Minkoff and Alison Wyatt, of the women’s founding group. Others include: Emily Doyle and Mei Kwok by Dune Suncare and Yanghee Paik de Rael.
