As President Trump’s sweeping tariff hikes on Chinese imports take effect, small business owners across the U.S. are being thrust into economic uncertainty—none more so than those like Alyssa Chambers, founder and CEO of Nova Essence IO, a wellness brand that depends heavily on Chinese suppliers.
With tariffs surging to a staggering 104%, Chambers now faces a difficult choice: absorb the cost and risk profit erosion, or relocate her supply chain to domestic manufacturers—an option that could quadruple her production costs.
“This isn’t just a slight increase I can work around,” Chambers told ForbesWomen. “My cost of goods could double overnight. But I’m committed to not passing that on to my customers. That’s not how we built our brand.”
When “America First” Hurts Main Street
The latest tariff hike—announced as part of a broader strategy to “rebalance” trade with China—affects over $300 billion worth of goods ranging from electronics to textiles. While big corporations may be able to hedge, delay shipments, or shift production offshore, small and mid-sized enterprises (SMEs) often don’t have that luxury.
One-sentence paragraph: For brands like Nova Essence, built on slim margins and loyal customer bases, even a small shock can ripple into an existential threat.
Chambers’ flagship product line—a suite of botanical-infused body oils and wellness blends—relies on imported glass packaging and specialty components from China. “It’s not just about finding a U.S. supplier,” she said. “It’s about quality, scale, and speed. The ecosystem I depend on doesn’t fully exist here—yet.”
Small Business, Big Dilemma
Chambers said she explored switching to a U.S. contract manufacturer. The quote? More than four times what she currently pays, not including custom tooling or increased lead times. “I’d have to completely redesign my margins, my pricing structure, and probably my entire business model,” she said.
But keeping her existing Chinese supplier means her costs will still double due to the 104% tariff.
Caught between two unaffordable options, she’s choosing a third path—innovation through community.
Crowdfunding and Collaborations
Rather than pass rising costs on to consumers, Chambers is launching a crowdfunding campaign aimed at preserving pricing while funding the shift to more resilient sourcing. She’s also joining forces with other wellness brands to bulk-purchase shared components, unlocking volume discounts that smaller brands often can’t access alone.
“There’s strength in numbers,” she said. “If I can work with three or four like-minded founders, we might be able to negotiate better terms with suppliers—whether they’re in China, Mexico, or even here in the States.”
This kind of collaboration marks a shift in how SMEs respond to macroeconomic pressure—leaning into community capitalism instead of competing in isolation.
Consumer Loyalty vs. Cost Pressure
“We’ve spent years building consumer trust around wellness, quality, and transparency. Raising prices during a time of uncertainty—especially for products people rely on for their self-care—just feels wrong,” she said.
But she acknowledges that might not be sustainable forever. “If this lasts more than a few months, or if tariffs go even higher, we may need to adjust price points strategically—but only as a last resort.”
Broader Impact on the SME Ecosystem
Chambers is far from alone. According to data from the U.S. Small Business Administration, over 28% of U.S. SMEs rely on imported goods or components from China. With the new tariffs, that group could see profit margins slashed by 20–50%, depending on their flexibility and sector.
Industries most vulnerable include:
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Consumer electronics
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Personal care & wellness
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Home goods & décor
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Apparel & accessories
“These tariffs are meant to punish China,” one industry analyst told Forbes. “But they’re ending up as a tax on American entrepreneurs—the very people who create jobs and fuel local economies.”
Policy Response: Too Little, Too Late?
So far, federal relief has been minimal. The Office of the U.S. Trade Representative has proposed limited tariff exemptions for “mission-critical” sectors like semiconductors and defense, but not for wellness or consumer lifestyle goods.
Calls for tariff rebates, SME tax relief, or supply chain relocation credits have surfaced in Congress, but no legislation has passed.
“There’s still a disconnect between Washington and Main Street,” Chambers said. “Big companies have lobbyists. We have GoFundMe pages.”
Looking Ahead: Resilience Over Efficiency
Despite the uncertainty, Chambers remains hopeful. “This moment could force us to build a more sustainable, diversified supply chain. Maybe even revive some domestic manufacturing,” she said.
“If we can make it through this without compromising our mission, it’ll be because we got creative—not because the system worked for us.”
