38 consumer startup founders lobby over Trump tariffs: One faces a surprise $200K bill

Tech Crunch - Apr 11th, 2025
Open on Tech Crunch

A coalition of 38 female-founded consumer product companies has penned an open letter to President Trump and Congress, urging a halt to increased tariffs that threaten the survival of small businesses. Recently, Trump raised tariffs on Chinese imports to 145%, escalating from an initial 20% levy, causing significant financial strain on companies that rely on overseas components due to a lack of domestic alternatives. Allison Luvera of Juliet Wine and other signatories, including Rebecca Minkoff, emphasize the disproportionate impact on small enterprises lacking the resources to absorb cost increases or reconfigure supply chains. They call for exemptions, or at least assistance through grants, tax incentives, or technical support.

The letter highlights the broader economic implications of the tariff hikes, noting these businesses collectively generate $800 million annually and employ thousands. Unlike larger corporations, small businesses struggle with renegotiating supply contracts and absorbing steep cost increases imposed by the tariffs. The founders propose a government-led small business assessment to better understand the impact and push for legislative support. The initiative seeks to mobilize other small business owners and concerned citizens to lobby Congress and demand relief measures that can prevent potential closures or layoffs in the small business sector.

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RATING

6.8
Fair Story
Consider it well-founded

The article provides a timely and relevant examination of the impact of tariff policies on small businesses, particularly female-led consumer product companies. It offers a clear narrative and specific examples to illustrate the challenges faced by these businesses, enhancing reader comprehension and engagement.

However, the article would benefit from a more balanced perspective by including viewpoints from policymakers or economists who might offer alternative insights into the tariff policy. Additionally, verification of specific claims and figures would strengthen the article's accuracy and credibility.

Overall, the article effectively highlights an important economic issue and encourages civic engagement, but it could be improved by providing a more comprehensive analysis of the broader economic implications and potential benefits of the tariff policy.

RATING DETAILS

7
Accuracy

The story makes several claims that are generally verifiable but require further confirmation for complete accuracy. For instance, it mentions an open letter by 38 female consumer product founders urging President Trump and Congress to reconsider tariff increases. This claim aligns with the documentation of the letter but needs verification of the exact number of founders and the letter's content.

The story asserts that Trump's tariffs on China were increased to 145%, including a previous 20% levy, while tariffs for other countries were paused at 10%. This specific detail about the tariff rates and the countries affected requires verification, as it is a critical point of the article.

Additionally, the impact on small businesses is highlighted through examples such as Allison Luvera's $200,000 annual bill due to tariffs and a home-cleaning brand facing an 80% increase in packaging costs. These specific instances need verification to confirm their accuracy and representativeness of the broader issue.

Overall, while the story presents detailed claims, the need for verification of specific details and figures suggests a moderate level of accuracy.

6
Balance

The article primarily presents the perspective of small business owners negatively affected by the tariffs, particularly emphasizing the challenges faced by female-led consumer product companies. This focus provides a clear narrative but lacks balancing viewpoints from policymakers or economists who might offer a broader context or alternative perspectives on the tariff policy.

There is an implicit bias towards the negative impact of tariffs, with little exploration of potential benefits or reasons behind the tariff increases. The absence of comments from government officials or supporters of the tariff policy suggests a one-sided portrayal.

While the article effectively highlights the concerns of the small business community, it would benefit from a more balanced approach by including perspectives from those who support the tariffs or believe they might benefit certain sectors of the economy.

8
Clarity

The article is well-structured and presents its main points clearly, making it accessible to readers. The narrative flows logically from the introduction of the issue to specific examples of its impact on small businesses.

The language used is straightforward and free of jargon, which aids in reader comprehension. The inclusion of direct quotes from affected business owners adds to the article's clarity by providing concrete examples of the issues discussed.

However, the article could benefit from clearer explanations of the broader economic context and potential implications of the tariff policy, which would provide readers with a more comprehensive understanding of the issue.

7
Source quality

The article references an open letter and includes quotes from Allison Luvera, a founder directly impacted by the tariffs. These sources provide firsthand accounts and lend credibility to the claims made in the story.

However, the article lacks citations from independent experts or economists who could provide additional context and analysis of the tariff policy's broader economic implications. Including such sources could enhance the reliability and depth of the reporting.

The reliance on statements from affected business owners is valuable, but the article would benefit from a wider range of authoritative sources to strengthen its overall credibility.

6
Transparency

The article clearly states the main claims and identifies the key figures involved, such as Allison Luvera and other female founders. However, it does not provide detailed information about the methodology or criteria used to assess the impact of tariffs on small businesses.

There is a lack of transparency regarding the sources of specific figures, such as the $200,000 annual bill faced by Luvera or the 80% increase in packaging costs. Providing more context on how these figures were calculated or sourced would enhance transparency.

While the article outlines the demands of the business owners, it does not disclose any potential conflicts of interest or biases of the sources, which could affect the impartiality of the claims.

Sources

  1. https://techcrunch.com/2025/04/11/38-consumer-startup-founders-lobby-over-trump-tariffs-one-faces-a-surprise-200k-bill/
  2. https://20fix.com
  3. https://fortune.com/2025/04/10/trump-tariffs-female-founders-letter-small-business-exemptions/
  4. https://beamstart.com/news/38-consumer-startup-founders-lobby-17444020883474
  5. https://techcrunch.com/2025/04/11/startups-weekly-enjoying-the-reprieve/