Lauren Greenwood, co-founder of YouCopia, is worried about the future of her kitchen organization products company after a significant decline in staff and increasing operational costs.
Founded in 2009 alongside her father Mark, YouCopia has experienced growth over the years, now boasting over 100 products sold through major retailers such as Target and Walmart.
However, the past six months have been challenging. Tariffs imposed on goods imported from China have dealt a heavy blow to YouCopia and similar businesses in the Chicago area, which rely heavily on Chinese manufacturing.
“We started the year with 21 employees, and now have 11,” Greenwood said. “We started the year poised to grow, but everything has changed. I hope we can hang on.”
The rising tariffs on imports from China have not only impacted YouCopia but have also led other housewares companies to express grave concerns about their futures.
A survey conducted in May by the International Housewares Association revealed startling statistics: 87% of respondents reported significant impacts from tariffs, and 90% had to delay or cancel shipments.
Moreover, the survey found that 62% had raised prices for consumers while 27% had cut their workforce. In a small fraction of the surveyed businesses, 8% have shifted their manufacturing back to the United States as a response to the escalating tariffs.
Derek Miller, the president and CEO of the International Housewares Association, emphasized the pronounced challenges faced by companies in the current marketplace.
“Our members are telling us the current landscape is extremely challenging and making it very difficult for their businesses to succeed,” Miller mentioned.
YouCopia imports approximately 100 shipping containers of goods each year from China, and the ongoing tariff situation has caused Greenwood to slow orders from her suppliers.
“After the tariffs peaked at 145%, we paused production. When they were reduced to 34%, we resumed shipments, but the pace remains slow,” she explained.
Previously, the company had only been subject to a 6% tariff before President Donald Trump’s administration increased taxes on imports from China.
In an effort to ease the strain, the United States and China had agreed to lower most of the tariffs in May, declaring a temporary truce.
Under this agreement, the U.S. would reduce its 145% tariffs to 30%, while China would revert its tariffs from 125% down to 10%.
In Crystal Lake, Widgeteer, another household goods company, has similarly scaled back imports due to high tariffs.
Founder Bill McHenry stated that his company has reduced its monthly shipments from two to three containers a month to just one.
“Right now our rate is 60.5% of the value of the goods, so it’s still huge,” he mentioned. “For a container worth $80,000, I’m faced with $49,000 in duties and taxes, which I can’t fully absorb.”
McHenry highlighted that glassware, which constitutes 40% of Widgeteer’s business, is primarily sourced from China.
“The unique craftsmanship of our glassware cannot be replicated in the United States. China is the only option for us, as their factories deliver unmatched quality for certain products,” he remarked.
Prior to the hefty increases under Trump’s administration, Widgeteer generally paid tariffs ranging from 3% to 10%. To mitigate recent cost surges, McHenry resorted to cutting the workweek down to four days for his 12 employees.
Tracey McGhee, founder of Ms. Jetsetter, expressed her concerns about her travel accessories business.
She fears that if tariff rates do not decrease significantly over the next eight to ten months, her company may not endure.
“We don’t have deep pockets,” McGhee stated. “We need every little margin we can get.”
Greenwood noted that relocating production from China is not a feasible option.
“The products we manufacture can’t realistically be made in the U.S. at prices consumers will accept,” she elaborated. “We’ve explored multiple avenues with Midwest factories, and the numbers simply do not align.”
The paramount issue, Greenwood said, is the uncertainty surrounding tariffs.
“This unpredictability halts our ability to plan investments and grow our business,” she declared.
Reflecting on her own experiences, McGhee mentioned missed opportunities.
“During my time at the Inspired Home Show, I engaged with potential partners that could have propelled my business forward.
However, the ongoing tariff discussions forced us to pause those promising talks,” she concluded.
image source from：wbez
