Lately, we’ve been getting a lot of questions that all boil down to one thing:
“How will these new tariffs affect your prices?”
And trust us, we wish we had a simple answer.
Unfortunately, the only thing predictable about modern tariff policy is that it keeps changing. With a 145% tariff now slapped on a wide range of Chinese-manufactured goods, we’re looking at significant challenges in keeping prices stable, products available and shelves full.
Let’s break down what this really means for us and for you.
What Does a 145% Tariff Really Do?
Let’s say a product we buy from China originally cost $10.
With a 145% tariff, that product now costs us $24.50 before it even gets on a boat. That’s a $14.50 increase on day one.
Add in shipping, customs, handling and overhead? That $10 item might now retail for $40 to $50, depending on the category and markup needed to survive in retail.
And that’s assuming it arrives on time, undamaged and isn’t further delayed by port congestion or customs slowdowns.
Who Pays the Tariff? Spoiler: It’s Not the Country It’s Aimed At
Despite what some politicians may say, tariffs aren’t paid by the exporting country (in this case, China). They’re paid by the importer — that’s us. And unfortunately, we can’t absorb a 145% cost increase on most items and still stay in business.
So yes, that cost increase gets passed down to customers, not because we want to, but because it’s the only way to keep the lights on.
Supply and Demand, Now Playing With Fire
When tariffs spike, prices rise. When prices rise, demand drops. But here’s the kicker — supply also drops, because we’re not the only ones pausing purchases.
Some items will be discontinued. Others will have limited availability. What used to be simple restocks now involve spreadsheets, nail-biting and sometimes tough decisions to drop products entirely.
This creates a chaotic retail environment at a time when, let’s be honest, retail is already hard. Online giants, shrinking margins and customer expectations all make balancing the scales trickier than ever.
“Why Not Just Make It in the USA?”
Great question. The short answer: We’d love to.
The long answer: It’s not that simple.
We all dream of the tagline “Made in America”, but shifting manufacturing from China to the U.S. involves a lot more than flipping a switch. Here’s what it takes:
- Infrastructure: Factories, equipment and tooling all need to be designed and built or, in the very least, retooled.
- Workforce: Skilled labor isn’t always immediately available, especially in niche manufacturing sectors.
- Time: Even fast-tracked, setting up domestic production could take 24–36 months, if not longer.
- Cost: Labor, materials, insurance and compliance costs in the U.S. are significantly higher than in less developed countries. The final product might still be more expensive than the tariffed import.
Now, some products may shift to countries like Mexico, Vietnam or India. But those transitions still take time and often come with their own trade agreements, risks and logistical puzzles.
Other Factors to Consider
Tariffs are just one piece of the pricing pie. We’re also watching:
- Shipping costs (which fluctuate constantly)
- Currency exchange rates
- Raw material shortages
- Geopolitical tensions
- Port backlogs
- New compliance rules and regulations
All of these factor into final pricing, availability and the decisions we make about what to carry and when.
So What’s Next?
We’re taking a hard look at our inventory and product lines.
Some items may be paused or discontinued altogether.
We’ll do our best to keep things affordable, but we also want to be honest: you will see higher prices on select goods in the months ahead.
We understand that rising costs are making it harder for consumers to afford basic necessities like food, rent and fuel. As prices climb, people are being forced to make tough choices, distinguishing between needs and wants, and often cutting back on discretionary spending. This ripple effect puts pressure on businesses, some of which may not survive the downturn. We remain hopeful that our foundation is strong enough to weather this tariff storm, but only time will tell.
We’re not throwing in the towel. We’re adjusting, adapting and doing everything we can to be transparent with our community.
We appreciate your patience and understanding as we navigate this evolving landscape. And if you ever want to geek out over trade policy or lament the price of widgets with us, we’re here.
Thank you for supporting small business in a big world.
– a Snaggy diMe
