How the Tariffs Are Affecting Small Brands
Andrew Chen is the founder of NYC-based menswear brand 3sixteen. It’s one of my favorite brands and a great example of a label built with soul and integrity.
In this reel, Andrew talks about how tariffs are affecting his business. It’s a great explainer for anyone who wants to understand how the tariffs impact small, independent brands.
Andrew keeps his cool on camera, but you can tell he’s frustrated. This is his livelihood after all.
Here are a few key points Andrew makes:
- Increased costs — 3Sixteen imports their denim from a mill in Japan and crafts the jeans in the U.S. They have a shipment of fabric they ordered a month ago that’s expected to arrive in the next few days. Because it arrives after the tariffs were implemented, they are subject to a 26% tariff. This tariff is then absorbed bu the retailer who then passes it to the consumer.
- Uncertainty — Their jersey knits are made in Canada when the 25% in Canada. They weren’t sure whether they were to deal with the 25% tariff or not then it got pulled at the 11th hour. When you sell to retailers, you give them a cost, and because of the pretiabilitu, they don’t know what exactly they’ll be charging.
- Deteriorating overseas markets — If the U.S. imposes tariffs, other countries may retaliate, which overseas retailers may reconsider buying an order because they can get another product from another country with less tariffs. This then hurts American brands.
3sixteen is exactly the kind of American brand these tariffs are supposed to protect—yet Andrew shares multiple examples of how they’re hurting his business instead.