Tariffs Are Causing Brands to Back Away From the US and Expand Abroad Instead

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Matthew Hassett, the founder of lamp and clock brand Loftie, realized he couldn’t depend on the U.S. market like he had in the past. Ninety-five percent of Loftie’s sales were from U.S. customers, but the company was stuck paying tariffs of up to 180% to bring in products from China. 

Loftie needs components from abroad, and while it looked into operating a factory in Thailand, that turned out to be even more expensive than operating in China. “Until there’s some finality on these tariffs, it’s too risky to bet on being able to even sell here [in the U.S.],” Hassett told Modern Retail in an interview.

Read about Hassett's new plan here.