News - Are How Tariffs Impacting Small Businesses? What You Need To Know
Natural Cotton Canvas
Sarah Bertochi - Handmade, Studio
You have very likely heard news of the recently imposed tariffs and may be curious about how these new fees are impacting small businesses such as mine, and also what do the increased fees mean to you as a consumer.
Sarah Bertochi - Handmade is not only a physical brick and mortar shop but also a brand. I am seeing increased costs from both sides - retail as well as manufacturing.
Retail:
Retail operates on thin margins - many shops will have no choice but to pass the increased costs on to customers. Tariffs have resulted in higher prices on a host of finished goods. An item which cost $15 a month ago now may cost $20. In this example sellers are likely to pass on tariff-related costs.
It is a difficult choice - either shop owners will take the brunt of the impact and not be able to grow or reinvest in their businesses, and wind up with a lower profit margin OR the added costs will get passed along to customers with the potential loss of business as a result.
I am fortunate to be spared the full negative effects of the tariffs as it related to the consumer goods carried in the shop. My business had made an intentional effort since we first opened to support and purchase products which are made either locally in New England or products that are made in USA.
Currently the shop carries only two products which are imported - my favorite Duckhead umbrellas and Studio Wald flower presses. In the short term, I am going to hold off on any reorders until the tariff fees settle down.
Tote Bag production
Screen Printed panels
Manufacturing:
As with my retail shop, I have chosen to partner with American suppliers. The raw materials needed to produce my own products are purchased from other small US based companies. Our products are made small batch locally right here in Massachusetts, including the screen printing, and the labor to cut/sew each piece.
My brand (like my shop) is in a good position to weather any tariffs related raw materials increases. Manufacturing is a complicated and layered process. I may order from a US based supplier but that does not mean that they do not source their raw materials from overseas. I have already seen an increase in the cost of the natural cotton base cloth I use to screen print. So although I purchase the material in bulk from a US company, the actual unprocessed fabric (greige goods) are likely from China/India.
In March of 2025 I paid $5.59/yard and today a month later, that same material is $10.39/yard. That is a whopping 85% increase! Because I had just placed a large order and have inventory on hand, the increase is not something which will impact my products, at least not until I have to reorder. That is likely months away and in the interim, I will be busy researching alternate suppliers.
For any small business whose supply chain is dependent upon foreign imports, these new tariffs will impose an incredible hardship. At Sarah Bertochi - Handmade, I do not foresee imposing an immediate price increase but instead will continue to monitor my costs of good and make adjustments as necessary to maintain my current (or as close to) margins.