We’ve received a bunch of emails and DMs in the last week asking how the new tariffs will affect our prices. Rather than answering each individually, I gathered them all up and put my answers in this post.
I know many of you are asking because you are trying to decide whether to buy now or wait, so I hope this is helpful.
For small business owners like me, these new tariffs aren’t just numbers on a spreadsheet, they’re real obstacles that affect our day-to-day survival. When the cost of bringing our products to the US suddenly goes up like it has, we are forced into panic mode. Unlike big corporations, we don’t have deep pockets to weather the storm or the resources to make quick changes. Our small size also means we lack political influence, so exemptions like those that have been given to the tech giants aren’t coming for us. Every extra dollar we spend on a tariff means tougher choices, like raising our prices, cutting back on our team, or delaying new product development. Tariffs may be aimed at protecting industries, but in the end, it’s small businesses that are paying the price.
Q: Are you going to raise your prices because of the tariffs?
Short Answer:
Likely yes, but we are still figuring out what exactly that will look like. As I’m sure you have seen in the news, the tariff rates seem to change weekly. We have a spreadsheet for every possible scenario. As it stands now, raising our prices seems inevitable, but we are not yet sure when or by how much. And we are still very much hoping for a miracle to make it so we don’t have to!
Long Answer:
Using Pakistan as an example—we make our organic cotton products at a small family-owned factory. We have been producing cotton goods with them since 2010 (they made the diapers and wipes we used for the cloth diaper service we used to run). On April 2nd, Trump announced a 39% tariff on all goods coming from Pakistan. I’m embarrassed to say that I DID NOT see this coming. We already had tens of thousands of Inners, Overnighters and Wipe Ups made, paid for, and ready to ship—so you can imagine our panic. We paused the shipments so we could try to figure out what to do. A few days later, we breathed a huge sigh of relief when the President lowered the tariff to 10% for 90 days. Let me be clear, 10% is still problematic for us but when compared to 39%, it feels like a gift!
We then considered trying to expedite all orders for 2025 so they ship before July 8th when the tariff is expected to go back to 39%. But that presented a new problem. Doing this would be mean staffing up at our factory and bringing in new cutters and sewers that have no experience making our products. With little time to train them, this could result in inconsistencies in quality. Then, come July, since we would not be producing anything else for the rest of the year, we would have to lay off not only those newly hired workers, but the experienced workers who have been making our goods for 5 years as well.
This was one of the more difficult decisions I have had to make as a business owner. I decided it was just not right to mess with the livelihoods of these hard working humans. So we abandoned that plan and are just keeping our fingers and toes crossed that the tariff does not go up this summer.
We will absorb the 10% tariff for as long as we can and not raise our prices. But how long that can go on is largely dependent on what other products in our line are affected by tariffs too. And if the tariff jumps higher than 10% in early July? Well, we don’t quite have a plan for that just yet. But we’re working on it!
Q. Will you raise prices on detergent or diaper cream too?
A: These new tariffs won’t only affect the products we make overseas. They will also drive up the cost of our Washing Powder (made in Massachusetts) and skincare products (made in Wyoming). Why you ask? Because 2 years ago we made the switch away from virgin plastic to 100% recycled plastic. And guess what, the best country to source GRS certified recycled plastic containers from is China. So we are currently taking stock of how many canisters, jars, tubes and bags we already have in the US and trying to figure out what the cost of future orders will be for us when accounting for the 145% tariff on goods coming from China. We will also be exploring other countries as potential sources, but please understand that sourcing and sampling is challenging and time consuming and we are a small team.
Q: Why don’t you just make your diapers in the US?
A: This is the million dollar question! And it has 2 answers.
1. Cost
Before I get into the details, I’m going to take you back in time to 2018, when we were finalizing our diaper designs with my dear friend and technical designer, Patti Gilstrap. She and I worked tirelessly in the back of her sewing studio in Brooklyn, NY. There we did fittings with volunteer babies from our diaper service and cut paper patterns into the wee hours of the night. Once I had our final prototypes and tech packs, my partner Sarah and I started looking for factories around the US to produce our products. We reached out to several dozen, but only 6 were even willing to make samples for us given our small size. The samples we received were ok (but far from perfect) and 4 of the 6 did not seem interested in doing a second round. But the biggest issue was not their lack of enthusiasm, it was the cost per unit. They were SO EXPENSIVE! Like these factories were going to charge us per diaper what we were hoping to ultimately set our MSRP at!
The very last thing we wanted was to create an “exclusive” cloth diaper brand for only high income earners. Because while some of you might be able to afford $24 Inners and $36 Outers, most cannot. And it’s those that cannot that benefit most from the savings that come with cloth diapering!
So producing in the US was not an option then, and is still not an option now if we want to keep our diaper prices within reach. We will always continue to try (we put out feelers every year or so), but I have to be honest, I’m not hopeful.
2. Materials
The second reason we cannot make our diapers in the US is the unique material we use. I already mentioned our recycled plastic packaging, but did you also know that our Outers and Wet Bags are made of recycled plastic bottles, too? It’s true! Diaper covers are generally made of virgin polyester, and polyester is basically just plastic. As a brand, we made it our mission to avoid creating any new plastic (our Earth already has plenty of it!). We learned quickly when sourcing materials that China is the leading manufacturer of GRS certified polyester. Not only is their upcycled poly of premium quality (it’s SO soft and stretchy!) but it is also affordable (compared to similar fabrics we tested from India, Germany and the US). Which brings us back to reason #1 - Cost.
I can assure you of this. We are NOT producing overseas and getting rich off the profit. Our margins were just enough to grow a healthy company and take good care of our small team. Those 2 things are now at risk because of the extreme tariff increase.
Q: Are you still going to give discounts and have big sales in the future?
A: I’m honestly not sure. We debated for several days over whether or not to cancel the Big Earth Day Sale that is currently running. Yes, the inventory we are currently selling was brought in before the tariffs hit BUT how could we in our right minds sell that at 25-30% off when we will have to restock it at a much higher price?! In the end, we took a vote and decided that too many of our customers rely on this sale to stock up and size up and it felt wrong to cancel it with no notice. Having said that, we will likely have to be more conservative with discounts in the future if tariffs in place.
Q: I keep hearing that the tariffs are not just going to cause prices to go up, but that lots of companies will be out of stock of things because of shipping delays to the US. Is this going to be the case with Esembly too?
A: We have always done our very best to make sure all products and colorways remain in stock, but sometimes things sell at a faster clip than we forecasted. What we have historically done when that happens is rush produce a replenishment order and have it expedited to us. I’m afraid that will no longer be an option because the tariffs leave us with no margin to absorb the high cost of the quick turnaround. So if things sell out, we will have to wait on standard production timing and shipping.
Q: I’m only 4 months pregnant and wasn’t planning to buy any baby stuff for at least a few more months. Do you think it’s a bad idea to wait? Not just on diapers but on everything else we will need too?
A: I absolutely hate writing this answer because I never want anyone to feel rushed to make a purchase they are not excited and ready to make (especially expecting parents who are having to make so many product decisions all at once!) BUT, I am in a founder group with a dozen other baby brands like ours. We are all staring at the same reality, and it is very, very likely that the cost of everything from diapers to car seats will be going up in the coming weeks/months. If I were in your shoes and was in the financial position to do so, I would go ahead and buy the products you know you will want/need for baby—even if it’s a few months earlier than you were planning to.
Some other tips:
- Invest in the best quality you can afford so that you can either use it for future babies OR resell it when you no longer need it (I predict that the second hand baby goods market is going to be hot!).
- Opt for reusable whenever possible. And I don’t just mean for diapers and wipes. Think breastmilk storage bags, nursing pads, baby food storage containers, etc. The cost of ALL of those single use products will be rising due to tariffs as well.
Q: One very kind person asked us on social: How are you all doing in the wake of the tariff news?
A: Thank you so much for even thinking about us! The answer is, we’re not so great. I’m scared of what this means for our business when we have no ability to pivot quickly. I’m scared of what this means for my partners and me when we have invested so much of our lives and money into Esembly. I’m scared of what this means for the 5 incredible women on our team. At the risk of being too transparent, there are 8 of us at Esembly and half are the primary breadwinners in our families. My partners and I have always aimed to be as generous as possible with raises and bonuses and time off and all of that is in jeopardy if these tariffs prevent us from running our business with a healthy margin. I couldn’t be more proud of what we have built in the last 5 years and I will do absolutely everything I can to ensure Esembly remains a high quality and affordable diapering option for families for decades to come, as well as a happy and healthy place to work. ❤️❤️
That’s it for the Q+A portion of my program. I’ll close with this…
I promise to you right here and now that we will ONLY raise prices after we have absorbed as much as we can without impacting the quality of our products and the livelihood of our hardworking team. And I also promise that this will not be a permanent change if it doesn’t have to be. If in the future tariffs go down or we figure out another way to make our goods that is more affordable, we will lower our prices accordingly. We will NOT use this as an excuse to make a higher profit at the expense of our Esembly families.
Want to learn more?
If you are interested in hearing more about how these tariffs are affecting small business like ours, check out THIS INTERVIEW with my friend Beth Benike of Busy Baby. Beth is a total badass. She’s an Army vet, mom of 3, and a dedicated business owner. She and I did a business accelerator program together a few years ago, and I was in awe of her passion and “can-do” attitude. Please share with anyone you know who is skeptical of the impact these taxes are having on small businesses.
Thank you for taking the time to read this and for your continued support as we navigate this new and uncertain reality.
Wishing you all the best,
Liz Turrigiano
Co-founder and CEO
