A Founder’s Real-World Take on Tariffs and Small Business Impact

There’s a side of tariffs most people don’t see—the way they quietly ripple through small businesses trying to build something meaningful. I’m Ifen Carlson, founder of Luvons, a woman-owned brand based in San Francisco. We offer stylish, machine-washable slippers that are made with comfort, durability, and shoe-free homes in mind.

As a small business owner, I’ve been asked a lot about how the new tariff on Chinese imports is impacting our business. So I want to walk you through the real-world effects of these tariffs on small businesses like mine.

How Tariffs Are Increasing Costs for Small Businesses

Here’s one real example. Last year, we received a shipment that cost about $24,000 in product alone. 

Shipping added another $3,200. Then once it arrived in the U.S., we were charged around $3,800 in fees: 9% for regular duty, plus 7.5% China-specific tariff on our product category, plus processing.

So just to land that shipment here? Just over $30,000.

If we brought in that exact same shipment today—with the new 145% tariff—it would cost over $62,000.

And here’s what often gets misunderstood: we pay that tariff. Not China. Not the factory. Me, as the U.S. importer.

That would force us to raise our $90 slippers to $120 or more. And we haven’t changed a thing about the product. Same quality. Same packaging. Same people making them. What’s changed is the tariff.

Why Small Businesses Can’t Simply Manufacture in the U.S.

It’s a fair question—and one we’ve often considered.

But here’s the reality: there are very few footwear manufacturers left in the U.S., and producing here would cost 3 to 4 times more than it does in China.

And beyond labor, China has something we simply don’t—local ecosystems of factories. Let me explain: when you're making a pair of slippers, every part has to be sourced from a different place. The velvet upper, the memory foam cushion, the rubber soles—even the shoe box and the logo ribbon on our laundry bags. All of these components come from different factories. In China, many of those are located in the same region—or even the same city. Sometimes, just down the street.

That proximity means we can move fast and stay efficient. We can go from design to production in days or weeks—not months.

In the U.S., we’d have to source from all over: velvet from Korea, rubber soles from New England, logo tags from North Carolina, and shoe boxes from California. That adds time, cost, and complexity.

It’s not just about final assembly. It’s about the entire supply chain—and how interconnected, specialized, and local it needs to be to make a product like ours work.

The Impact of Tariffs on Our Business Today

We’re okay for now. Last year, we placed large orders to meet minimums and launch new colors and designs—not because we predicted the tariff hike, but because we were growing and excited about what was ahead.

The upside is we’re stocked. The downside? The next wave of new designs—ones we were really proud of, and that customers have been asking for—are now on hold.

We had new colors of the Devon in the pipeline. A fresh seasonal palette we couldn’t wait to share. We also had a new style that felt perfect for the warmer months. But all of it’s on hold.

And we know we’re not alone. These tariffs affect every small business that relies on overseas production. We don’t have deep pockets or sky-high margins. We’re building something carefully and intentionally. And when costs shift this dramatically, it makes those decisions harder.

For now, we’re managing. But in the next 6 to 9 months, we’ll have to reassess—whether that means increasing prices or rethinking the business altogether.

We’re staying hopeful. We’re staying resourceful. And like many small businesses right now—we’re doing our best to adapt.