This week, I had a call with Myles (founder of Hello Clio) and Julia, one of our project managers at Colored Byte. Myles runs a small but super beloved brand that makes bags for Kindle readers and she’s facing something that’s becoming all too common for eCommerce founders that import from china right now: tariffs.
If you haven’t been hit yet, you’ve probably at least seen the headlines. New tariffs on Chinese imports could be as high as 245%. That not only impacts her business but threatens its very existence.
We talked through it. And what came out of the conversation were several paths that I think are worth sharing with other founders going through the same thing.
First: You’re Not Alone
This isn’t just a Hello Clio problem. Any brand sourcing from China right now is vulnerable. But it hits especially hard for small, independent founders who don’t have cash reserves or diversified supply chains.
Myles is a great example. Her manufacturer in China is incredible, reliable, high quality, and the relationship has been built over years. But suddenly, everything that’s worked until now is in question.
Here’s What We Explored (and What You Can Try Too)
1. Rethink Pricing (But Be Transparent)
Myles had to raise her prices. She gave her followers a heads-up on Instagram, explained the situation, and the response was full of love. People appreciated the honesty and still supported the brand.
🟢 Takeaway: If you need to raise prices, do it but take your audience with you. Authenticity goes a long way.
2. Diversify Manufacturing (Even If You Don’t Switch Immediately)
She’s now testing suppliers in Mexico and Vietnam. Prices are higher than China, but tariffs are lower (around 10% in Mexico), and building those relationships now gives her options for the future.
🟢 Takeaway: You don’t have to switch overnight, but you do need a Plan B. Start sampling. Start talking. Don’t wait until there are no other options.
3. Use Pre-Orders to Stay Cash-Flow Positive
Myles has successfully run pre-orders before, and she's considering going back to that model temporarily. That way she can wait until she has cash in hand before committing to production.
🟢 Takeaway: If inventory risk is too high right now, pre-orders can give you breathing room. Customers wait a bit longer, but you avoid going underwater.
4. Add Low-Risk, Local Products to the Mix
She’s supplementing her lineup with U.S.-made items like keychains and print-on-demand sweatshirts. Even if they’re not your core products, they can help cover overhead while you navigate the bigger challenges.
🟢 Takeaway: Local products don’t have to replace your hero products but they can help stabilize revenue.
5. Don’t Be Afraid to Ask for Help
We told Myles if you need to pause or reduce our agency fees for a while, we are happy to help and do what we can. We’ll also keep working on her store to help communicate changes in the user experience and avoid conversion rate drops as much as it is possible.
🟢 Takeaway: Talk to your partners, agencies, vendors, suppliers. This isn’t the time to suffer in silence. Many of us want to help however we can.
A Quick Note on Workarounds
There are some creative strategies being discussed, like flying to China, claiming inventory as personal items, and shipping it back under different customs codes. These might work for some, but they’re not scalable or guaranteed to stay legal. Worth exploring? Maybe. Worth depending on? Probably not.
A Final Word
This isn’t just a policy change, it’s a massive operational challenge.
If there’s anything this conversation reminded me of, it’s that small brands are resilient. We figure things out. We shift. We adapt. And when we do it together, it’s a little less terrifying.
So if you’re navigating tariffs right now:
- Communicate with your customers.
- Build a backup supply chain.
- Get creative with your product mix.
- Stay calm, stay scrappy, and lean on your network.
You’ve got options. You’ve got support. And you’ve got people rooting for you. Let us know if we can help during this time.
