The Hidden Cost of Tariffs: What Emerging Brands Need to Know
Lately, I’ve been getting asked a lot about tariffs — and honestly, I get why. Among all the other fires that small business owners and creative founders are putting out right now (supply chain delays, rising material costs, margin pressures, shifting consumer behavior — take your pick), the looming impact of tariffs has become impossible to ignore.
Whether I’m consulting with a jewelry startup, a beauty brand founder, or a design team sourcing materials abroad, the same questions keep coming up: What should we expect? How do we protect our margins? Can we still grow under these conditions?
This post is my attempt to unpack those answers. While tariffs may seem like distant economic noise, for emerging brands, they can have a very personal and immediate impact.
What Are Tariffs, Really?
Tariffs are taxes placed on imported goods, often used by governments to protect domestic industries or as bargaining tools in international trade. But let’s be real — if you’re running a small or emerging brand, you probably don’t have a trade negotiator on your payroll. You’re just trying to get your materials delivered, your products made, and your launches out the door without blowing up your budget.
When you’re sourcing gemstones from India, glass from the Czech Republic, or packaging from China, a tariff hike can throw your entire production plan into disarray.
The Supply Chain Ripple Effect
For emerging brands, your supply chain isn’t just part of your business — it is your business. You’re not Walmart. You don’t have the luxury of volume discounts, freight consolidation teams, or backup suppliers on speed dial. Most of us are operating lean, with intentionality behind every decision. So when a tariff hits — even just 10% or 15% — it creates a ripple effect:
Your materials cost more.
Your production timeline gets pushed.
Your prices feel “off” to customers.
Your margins? Squeezed to the point of pain.
You end up facing hard choices:
Do you raise prices and risk losing sales?
Do you absorb the cost and hurt profitability?
Do you delay the launch, find new suppliers, or cut corners?
Spoiler alert: none of those are ideal.
On top of that, navigating customs, updated paperwork, or new sourcing locations can lead to fulfillment delays, especially for brands just starting to gain traction.
The Consumer Psyche: Understanding the Shift
And let’s not forget about the customer. Today’s consumer is more cautious than ever — and more informed. They’re seeing price hikes all around them, and while many want to support independent brands, they also expect transparency and value.
This creates a psychological tension between desire and accessibility. People still crave thoughtful design, handcrafted quality, and meaningful storytelling. But they also want to feel confident that what they’re paying is worth it, not inflated due to obscure global policies.
That’s where clear communication becomes essential. This is your chance to share your process. Talk about where your materials come from. Explain how the global economy touches your small business. Customers will lean in — especially when they feel like they’re part of the journey, not just a transaction.
What Can Emerging Brands Do?
1. Audit Your Supply Chain
Know your sources inside and out. Which countries are subject to higher tariffs? Are there alternatives? Can you renegotiate with vendors?
2. Consider Local Alternatives
Domestic sourcing may not be cheaper, but it might offer predictability, faster lead times, and fewer regulatory headaches.
3. Communicate Openly and Often
Whether it’s on your website, in an email, or through social media, your transparency is your edge. Customers don’t expect perfection — they want honesty.
4. Build in Flexibility
Pad your margins where you can. Consider tiered pricing, pre-orders, or limited drops to protect yourself from unpredictability.
5. Stay Connected
Follow trade updates. Join small business advocacy groups. Sign up for alerts on tariff changes that affect your product categories. Knowledge is power.
Final Thoughts
Tariffs may be out of our control, but how we adapt is not. For emerging brands, the power lies in staying informed, telling your story with intention, and being willing to pivot without losing your soul in the process.
Because let’s be honest — building a business right now isn’t easy. But with clarity, resilience, and a touch of boldness, it’s still absolutely possible.
And if you’re feeling the weight of all this right now, you’re not alone. I see you. I’m in it too.
Let’s keep creating — smartly, sustainably, and unapologetically.
