Tariffs hit hard, but queer-owned brands push back with transparency and community
Tariffs hit hard, but queer-owned brands push back with transparency and community
At the start of President Donald Trumpâs second term in January, his administration quickly followed through on his promise to increase tariffs on U.S. trading partners. It began in February with a 10% tariff increase on all Chinese imports and a 25% increase on steel and aluminum products. , with the highest reaching a 145% tariff for Chinese imports.
After a 90-day pause starting March 14, during which tariffs on both countriesâ imports were reduced by 115%, the U.S. and China reached an agreement on June 10. Tariffs on Chinese imports settled at 55%, while U.S. import tariffs settled at 10%. For many U.S. businesses, the damage from the initial rise in tariffs has had a profound effect, especially for those in retail and apparel.
looked at how queer-owned businesses have begun speaking out about the effect of the tariffs and what they are doing to combat rising costs, or at least how to bring consumersâ attention to them.
TomboyX adds a âtariff surchargeâ to impacted products
Queer-owned apparel brand from CEO Leslie Garrand about the tariffs on its social media channels:
âIf youâre uneasy about the whole Tr*mp situationâyeah, same.
âThese are unpredictable times, and we want to be real with you. Trumpâs wild-@ss tariffs are creating serious challenges for small businesses like oursâand starting this May, we now face sky-high tariff costs.
âThe good news: Many of our products (like swim!) are less affected. So go ahead, shop away.
âThe not-so-good news: Products we sustainably produce in China are now hit with tariff rates of + 145%. To help offset just a portion of this cost increase, weâre introducing a temporary âTr*mp Tariff Surchargeâ on those items starting May 1. Youâll see a clear note on the product page and in your cart. (The amount varies by item, and weâll remove the charge as soon as we can.)
âThank you for sticking with us and supporting a small business doing its best to responsibly weather the chaos. Built to endure.
-Leslie Garrard â CEOâ
Since then, items on the tomboyX website that are affected by tariffs now feature a note in red that says âTr*mp Tariff Surcharge.â The additional fees range from around $1 up to $7.
âTomboyX has always done things the right wayâhigh-quality underwear, sustainably made, and inclusively designed,â Garrad shared with News Is Out. âBut the new Trump tariffs put extra pressure on small, values-led brands. These added costs are major and unplanned, and shifting our manufacturing footprint takes time and money. For small businesses, it hits hard. Weâre grateful to our community for standing with us as we adapt.â
Wildfang speaks out on CBS
Queer- and female-founded apparel company based in Portland, Oregon, has also . Wildfang CEO Emma McIlroy on April 9 about tariffs, which heavily impact the company. When asked how the steep rise in tariffs would impact her company, McIlroy shared an example.
âWe had our summer orderâso we make apparel, we make fashionâarrived on Monday this week. If that order had arrived today, it would have cost us $178,000 more to receive it. I donât have that money.â
When asked if those increases could be passed on to customers, McIllory said, âI do think youâre going to see businesses have to pass this on to consumers. If you were trying to maintain the same structure you have right now, it would mean an 83% increase in consumer prices. I donât think youâll see that full price increase, but thatâs how aggressive this would be for consumers.â
However, McIlroy shared that Wildfang is doing everything they can to mitigate the rising costs.
âSo, as a small business, weâre going to try everything in our power not to pass that along,â McIlroy said. âThatâs going to include working with our factory partners, looking at new factories and locations to manufacture, and thatâs going to include cutting our own costs. Every business will try to do that. But as a small business, there arenât that many places to cut. I think a last resort is going to increase prices.â
After speaking out publicly about how Trumpâs tariffs could affect Wildfang, McIlroy said the response from the community and customers has been overwhelmingly supportive.
Weâve had tons of lovely messages of support from our community,â McIlroy told News Is Out. âWeâve also had lots of notes from other business owners sharing their frustrations and fears and thanking us for speaking up and raising awareness about the topic.â
In terms of next steps, McIlroy said Wildfang is working with factories to fast-track orders during the 90-day tariff pause. âAdditionally weâre working with our factories to sample in Vietnam and Indonesia to diversify our manufacturing base,â she said.
Gay Pride Apparel watches and waits
For owners Sergio Aragon and Jesus Gutierrez, the rise in tariffs hasnât hit the business directly, yet much remains to be seen. Gay Pride Apparel does much of its business with American printers, but tariffs could affect them in other ways.
âThere is a lot of uncertainty for us about whether theyâll raise their prices because theyâre being hit with tariffs,â Gutierrez said in a Zoom interview with News Is Out. âAnd itâs also very timely for us, because obviously, itâs about to hit Pride. So weâre trying to figure out: will our production partner raise our prices? Does that mean that we have to raise our prices on our end?â
Itâs not just tariffs giving Gutierrez and Aragon pause, itâs also a challenging economy.
âWe know the economy is a little bit rough right now to begin with,â Gutierrez said. âOur pricing is already pretty high compared to a normal T-shirt. So weâre trying to juggle it all. And I think itâs all been so volatileâjust changing every dayâthat it hasnât really hit us in one way or another. Itâs almost kind of still up in the air for us.â
Gay Pride Apparelâs partners have been working with the company to keep shipping costs down and keep lines of communication open.
âBut the good thing is, our business partners and our suppliers have been really transparent with us and working with us,â Aragon said. âThere are different workarounds theyâre doing to help us avoid it.â
When asked their thoughts on tomboyXâs approach of including a clear note about tariffs, Gutierrez applauded the companyâs transparency.
âI love it,â Gutierrez said. âI mean, as you mentioned earlier, weâre very transparent with our customers, and I think itâs because itâs just us two. We have a two-way conversation with our customer and our community. So seeing tomboyX do that was really fun and felt like something we would do. We actually saw it and were like, âOh, should we consider doing something?â But we donât know how itâs going to affect us yet.â
Gutierrez and Aragon are considering what to do next and if tariffs really begin to negatively impact the company. While some companies are looking at having to pass on increases, Gay Pride Apparel is also looking at an alternative.
âBut as people are raising their prices and responding to this, we were talking about maybe lowering our prices and making less money per sale per product, but becoming more accessible,â Gutierrez said. âBecause truthfully, weâre struggling. Everyone struggles. How do we meet our customers where theyâre at?â
On a positive note as a queer-owned business, Gay Pride Apparel is seeing an increase in consumers supporting the company as an alternative to those that have changed their stances on support for Pride, diversity and inclusion, like and .
âTheyâll straight up call it out,â Gutierrez said. âOn Threads specifically, weâll get tagged randomly in posts that are like, whether itâs a boycott post or itâs a Pride-related kind of âtag your favorite queer business.â And then people are like, âOh, I only shop at Gay Pride Apparel now because the rest of them are abandoning us,â or âI only stick to companies who are here all year, such as Gay Pride Apparel.â Theyâll even say, âIâm trying to support, even if itâs 20% more, 30% more, to buy the shirtâIâll support Gay Pride Apparel over XYZ.ââ
Grrrl Spells faces steep costs and hard choices
While not U.S.-based business, Canadian company does a lot of business with consumers in the U.S. Last year, as one of the queer- and trans-owned businesses when their partnership with Target was drastically reduced and their labels were removed from remaining products.
Creator and designer of GrrrlL Spells, En Tze Loh, as a Canadian brand.
âEven though weâre a Canadian business, the majority of our online customers are from the states,â Loh said. âThe de minimis exemption allowing orders under $800 to enter the U.S. tariff-free was removed specifically for products manufactured in China, now subjecting them to an absurdly high tariff fee regardless of where itâs shipped from. We design all of our own products but get them manufactured both locally and abroad including China, and unfortunately many of our products will now be subject to those tariffs when delivered to U.S. customers.â
As a result, Grrrl Spells has pulled back on shipping certain products to the U.S.
âWe have decided to stop shipping any of our items that were manufactured in China to the U.S. as we donât believe anyone should have to pay these extreme fees, which drastically decreases our sales. Enamel pins, which are our most popular product, do not have any North American manufacturers at all and they are mostly produced in China, so sadly there isnât an alternative.â
During a time that should see the companyâs biggest spikes, Grrrl Spells is preparing for a slower season.
âWe are definitely anticipating a much quieter Pride month and year due to the tariffs and decline of the economy in general as weâve already been feeling the effects of it since the year began. Weâre trying our best to and find alternatives in order to keep going but it has been challenging.â
Looking ahead with resilience and gratitude
Loh also wants consumers and LGBTQ+ people to know how grateful they are for their support.
âWe would like to send so much love and strength to every queer and trans person during these wild times and thank you so much to everyone who has supported us throughout all these years,â Loh said. âWe need the support of each other more than ever right now. While we may not be able to ship many of our current goods to the U.S. at the moment, weâre working on a new collection for Pride with items that we will be able to ship tariff-free, so please stay tuned!â
was produced by and reviewed and distributed by ±ŹÁÏTV.
