GET DAILY REPORT FREE
On top of inflated goods prices and rising overhead costs, local boutiques are faced with another threat to store profit: higher tariffs on imports from China.
The Trump administration announced an additional 10% tariff on goods imported from China in February, where many local boutiques source apparel and accessories.
As more tariff updates are expected to be announced April, local boutiques are bracing themselves for what these additional costs might mean for their business.
Abby Bullock of Wanderlust by Abby says around half of her products are made in China. While price increases from her distributors have yet to manifest, she anticipates adjusting her apparel and accessory prices if her wholesalers increase their costs.
“Spring and summer are my slowest months, so that’s not going to help anything,” Bullock says about the ongoing tariff announcements. “I will probably have to plan some sort of promotions.”
Desiree Byrd of Hey Penelope says she hasn’t experienced higher prices from her wholesalers either. But if prices do begin to spike, she plans to absorb the extra costs to retain her customer base.
“Everything has been dramatically getting higher the last couple of years since COVID,” Byrd says. “What’s another dollar at this point?”
To compete with e-commerce giants like Amazon, Temu and Shein, Byrd aims to keep her prices as fair as possible and doesn’t charge her customers for credit card fees, she says.
“There’s really not much that we can do about it,” Byrd says about the tariffs. “I just try to keep going and hope that people still shop locally to keep the local community alive. If the economy keeps up [the way it is], we’re going to eventually see more and more businesses close or go all online. That’s one of the issues that people should be aware of. Try to shop small and local when you can. I know it’s not always possible, but you’re literally putting food on the table for many families.”
