When Donald Trump was elected for a second presidential term in November, many businesses braced for how his promised tariffs would impact their supply chain. But perhaps few expected that his promises to raise the cost for bringing goods into the U.S. would result in the escalation of tariffs on goods from China from 20% to 145% within a matter of days.
“It just felt so absurd,” said Alexandra Fine, co-founder and CEO of sexual wellness brand Dame. “That’s why I was like, ‘Let’s get absurd.’”
Some Dame products, including its signature vibrators, are made in China. Fine felt she had to do something to address the steep rise in costs to her supply chain. On April 9, the same day President Trump raised tariffs on Chinese goods to 145%, Dame added a $5 “Trump tariff surcharge” to customers’ shopping carts, including a graphic of Trump’s signature, fluffy blonde hair on the checkout page.
“It was way less about trying to cover the cost. It was more just trying to educate and get people to understand that this is political,” she said. “I want everybody to know that they should always use their voice even if something is uncertain, because your voice will matter in the uncertainty and might make a difference in the outcome.”
The sudden and seemingly volatile institution of tariffs on goods imported to the U.S. from countries like China has put many businesses in a bind on how to manage their supply chain. Some brands have chosen to go forth with increasing pricing as a result of tariffs. But calculating and communicating those increases requires a deep understanding of their consumer base.
“The decision starts with how confident you are in the loyalty of your consumer,” said Jason Brown, CEO of design and branding agency Pearlfisher. “On the pro side, it goes beyond the actual economics, because it feels as though you have a lever of solidarity — because you’re actually making a statement about something well beyond your business. … Alternatively, [raising prices] could feel, on the con side of things, incredibly opportunistic.”
Other brands have raised prices with a less overtly political message. Wallet brand Ekster announced it would increase prices of some of its products on Wednesday due to tariffs. Foreo, the Swedish maker of skin-care cleansing devices, announced it would raise the prices of some of its products by 20-30% for its U.S. customers, effective April 22, but it kept any mention of Trump off its public messaging.
“We’re not an American brand, we’re a Swedish brand,” said Evan Feldstein, Foreo’s gm of North America. “So we don’t want to wade into the ups and downs of American politics. That is something we’re probably not positioned to do.”
Feldstein said Foreo determined the price increase of 20-30% after negotiating with manufacturers and choosing to absorb some of the increases on its own, with Foreo’s Luna cleansing devices and Bear microcurrent devices being most impacted by the tariffs. He said this is not the first time Foreo has had to raise prices due to changing supply chain costs; the brand similarly alerted customers before raising prices when global shipping costs soared in 2021 in the wake of Covid.
“We did sort of do the exact same thing, which is say, ‘Hey, we’re going to give about a month’s notice. These transportation prices are through the roof.’ It’s difficult to absorb all the supply chain increases. We ended up increasing [prices], and then, to be fair, once that subsided, we decreased,” he said. “The last thing we want to do is alienate our clients and the Foreo fans in the world, and at least in the U.S., and make it seem that we’re doing something that’s opportunistic.”
The ostensible goal of Trump’s tariffs is to return manufacturing jobs to the U.S. Evan said Foreo considered moving manufacturing stateside in the wake of Trump’s November victory but did not find it to be a feasible path. Likewise, Fine said it would take years to build up the manufacturing capabilities required to make Dame’s vibrators in the U.S. But whether or not Trump’s policies restore American manufacturing jobs, they have ignited consumer awareness of where and how their products come to U.S. soil.
“I do think consumers over the years have gotten more and more like, ‘Oh, wait, how I spend my money matters, and how I spend my money is political and ethical,’” said Fine. “So I will say it’s got to be pushing it more in that direction. More people are just gonna have more information and more understanding.”
But Jason said it’s not necessarily the tariffs themselves that are causing the most consternation for businesses, but rather their volatility that makes any decision seem risky.
“This is a moment of hesitation as a result of uncertainty,” said Brown. “We’re all holding our breath and determining whether or not we should be making any changes at all.”
As of publication, Dame has removed the Trump tariff on its checkout page. Fine is betting the tariffs themselves will be equally ephemeral.
“My money is on these going away, at least the level [of tariffs],” said Fine. “I can make that bet, because I will not have money if they don’t go away.”
