In an open letter to President Trump and Congress, 38 female founders of consumer product startups warned that the recent tariff increases will have a devastating impact on small businesses, threatening thousands of jobs and millions of dollars in revenue. The founders, who collectively generate $800 million in annual revenue and employ thousands, are urging policymakers to reconsider the tariffs, which they claim will disproportionately affect small businesses.

The letter, published on Thursday, was written by Allison Luvera, founder of Juliet Wine, a startup that sells upscale boxed wine directly to consumers. Luvera faces a surprise $200,000 annual bill due to the tariffs, as she sources a key packaging component from overseas and has no affordable U.S. alternative. The letter highlights similar challenges faced by other small businesses, including a home-cleaning brand that sources refillable pouches from overseas, which could see an 80% increase in costs due to the tariffs.

The founders argue that small businesses lack the leverage to renegotiate supply chain contracts, the margins to absorb steep cost increases, or the capital to rapidly reconfigure global supply chains. "Unlike large corporations, small businesses are disproportionately affected by tariffs," Luvera wrote. The group is calling for a small business assessment to understand the impact of the tariffs, and ideally, exemptions from the tariff increases. Failing that, they are seeking grants, tax incentives, or technical assistance to help U.S. small businesses mitigate the effects of the tariffs.

The signatories include prominent entrepreneurs such as designer Rebecca Minkoff and Alison Wyatt of the Female Founder Collective. Other notable signatories include Emily Doyle and Mei Kwok of Dune Suncare and Yanghee Paik of Rael. The group is urging other small business owners and concerned citizens to join their lobbying efforts to protect small businesses from the devastating impact of the tariffs.

The tariffs, which were raised to 145% for China, including the previous 20% levy, are part of President Trump's trade policies aimed at addressing the trade deficit with China. While the administration has paused the tariff increases for 90 days for various countries, setting the rate at 10% for now, the impact on small businesses is already being felt. The founders' letter highlights the unintended consequences of the tariffs and the need for policymakers to consider the impact on small businesses and the broader economy.

The implications of the tariffs extend beyond the affected businesses, as they could have a ripple effect on the entire economy. With thousands of jobs at stake, the founders' warning serves as a timely reminder of the need for policymakers to consider the broader consequences of their actions. As the trade tensions between the U.S. and China continue to escalate, the fate of small businesses hangs in the balance, making it imperative for policymakers to find a solution that protects American entrepreneurs and workers.