125% Tariffs: The Death of an American Dream?
My journey from Etsy seller to leading a lawsuit against Donald Trump's trade policies
[Author’s note: Since posting this essay, we have received confirmation that our tariffs are now 150%. The 125% recently announced is in addition to the 25% we were already paying].
I carefully wrapped the Harney & Sons tea tins in red paper, neatly securing the ends with tape, before tying a gold ribbon around each box. I'd chosen Jasmine tea as a symbol of respect and harmony. A few Google searches and conversations with friends told me the red wrapping paper would communicate good fortune and best wishes for the coming year.
I packaged the gifts in a small box, put my son in his car seat, and drove to the nearest FedEx to ship the gift to China. Its intended recipient was "Joe" (actually Zhiqiao), but he went by his English name given to him by teachers when he was young.
I smiled as I filled out the shipment forms. Joe had become a good friend over our years working together and he told me that of all his factory's business partners, I was the only person to ever ask him his given, Chinese name. I was hopeful he would enjoy these gifts, carefully researched and chosen, as his teammates and family celebrated the Chinese New Year.
Three years earlier, I'd sat at a small desk in my guest room, sketching what I hoped would become a day planner to help busy women like me. At this point in my life, I owned a busy graphic design business and had an infant son. I was busy, overwhelmed, and in need of a tool -- something to help me manage the many aspects of my life well. I needed something simpler than anything I could find on shelves. But I also wanted it to have a luxury feel: something that would feel like worthwhile investment in yourself and your future.
I produced my first batch (without bells and whistles, as I was told those were cost prohibitive) in the U.S. The cover was laminated and the binding was a white spiral. Tabs were a no-go because the facility didn't have a die-cutting process. I sold each planner for $50 on Etsy. And each unit cost me $38 to make. Add in all the other expenses required to run a business and I made no profit that year. But I was okay with that. I knew if I tested the idea, and it was received well, I had options.
I continued sourcing in the United States for the next year's production run. Over and over I was told the type of product I wanted to make could not be made domestically in a profitable way.
Searching the internet, I came across a website that connected businesses with international factories specializing in many different processes. Many of the manufacturers I came across, asked if I was missing a "0" from the quantity I'd submitted to be quoted (500) as they only worked in large quantities. I was new, determined to run my business debt free, and only had enough money for 500.
That's when I met Joe. His factory had wonderful certifications and references. His tone was warm and friendly in his response: "You are new to this business, I would like to help you. Let's work together."
We worked together producing the Simplified Planner, the first day planner of its kind, in 2012. He was friendly and helpful in answering the numerous questions I sent his way. When I held the first sample of The Simplified Planner in my hands, I wept. This idea, born of my own need, created of my own imagination, had come to life – thanks to a friend thousands of miles away who'd taken a chance on me.
Joe and I continued to work together for many more years, until our needs outgrew his factory's capabilities. We remain friends to this day. This year, he even sent red scarves to my three children to share with them the joy of Chinese New Year.
Were it not for the vast capabilities of international trade, my company, Simplified, now employing nine women, serving hundreds of thousands of women all over the world – both on our website and in mass retail stores – would have never gotten its start.
Since 2017, my company has paid $1.17m in tariffs to the United States Government. I share this number publicly because the misinformation and confusion surrounding who actually pays these tariffs must be made clear. I have signed the checks. We have raised prices as much as possible. The rest we have sadly taken out of salaries, growth opportunities, and philanthropic efforts. With the most recent tariff increases, it is estimated that we will now be paying an astonishing 125% tariffs – meaning a planner that costs $12 to manufacture would require an additional $15 in tariffs (bringing our new cost to $27). This tax is catastrophic to our business. According to the Small Business & Entrepreneurship Council, in 2021, 76.7% of U.S. importers (266,662 total) had fewer than 20 employees.
It's for this reason, for all these talented women I work with, and on behalf of small businesses everywhere, that I partnered with the New Civil Liberties Alliance to file the first civil Complaint against Donald Trump challenging his unlawful attempt to require Americans to pay a heavy tariff on all products they import from China: Simplified v. Trump. These unlawfully implemented tariffs cause harm to American businesses, American jobs, and American consumers and will be the end of many American dreams.
These tariffs are of legal concern, financial concern, and equally important, human concern. May we remember, as our businesses and livelihoods are used as cheap red and black checker pieces in an international trade war board game, the cost of such flippancy: the conversation where an employer holds back tears while being forced to let a teammate go, the annual corporate donation to a women's shelter that cannot be made, and the entrepreneurial dream abruptly brought to an end – not because the business failed but because its government failed it.
What You Can Do
If you're concerned about the impact of these tariffs on small businesses like mine, here are some ways you can help:
Contact your representatives: Let them know how these tariffs affect businesses in your community. Ask them to speak up for proper legislative process in implementing trade policies.
Support affected small businesses: When possible, buy directly from small businesses impacted by tariffs – your purchase means more now than ever.
Spread accurate information: Share stories like mine to help others understand who really pays these tariffs (hint: it's not China).
Follow the lawsuit: Stay updated on our legal challenge and share developments with your network.
I'll be sharing updates on our legal battle as we go. In the meantime, I'd love to hear from you: How have tariffs affected your business or the businesses you support? What questions do you have about international trade and its impact on small businesses? Please share in the comments below.
Further Reading:
There is a great NY Times Daily podcast episode today with a woman very similar to you in her situation, titled “Her Business Was Thriving. Then came the tariffs”. I had wanted to share it with the commenter who suggested you needed to take this opportunity to build in-house but I can’t find that thread. This podcast so clearly lays out how that is next to impossible (actually not next to but truly impossible) at this time to do that. This woman is an Army veteran from Minnesota and doesn’t check any partisan box in case there is anyone thinking this is some anti-Trumper. I suggest it for anyone to listen so we understand what our fellow entrepreneurial citizens are going through. Emily, you have done such a good job clarifying and being transparent through this situation and I am rooting for you.
Thank you for continuing the conversations on tariffs and the costs to small businesses. I run some shops in California and we have been hit hard by the drop in tourism after the wildfires and now the tariffs - all of our goods come from overseas. I appreciate your posts explaining how it all works, because most people just don't understand. I've been a long time customer and was excited, happy and proud to support your company on Launch Day. Thank you!