Tariff Confusion and Recession Fears: What It Means for Handmade Brands Like Mine (And Maybe Yours, Too)

Cheri Tracy
Apr 21
3 min read

Global chaos? Recession whispers? Tariff hikes out of nowhere? Yep, welcome to the 2025 small biz economy.

Whether it’s a minor tweak or a major shake-up, staying informed is half the battle. And trust me, if you’re a handmade brand like mine—or just someone who touches packaging, production, or inventory in any way—these tariff shifts aren’t just headlines. They hit home. They hit margins. And they hit fast.

ICYMI: What Happened Last Week

Things got wild on the global trade stage, so here’s a quick recap:

China’s 245% Tariff?! The White House dropped a confusing statement that sent the stock market into a tailspin. Was it a new 245% tariff? Nope. It’s still 145%, but now they’re lumping in past tariffs to make the numbers look... creative. (Thanks for the stress, I guess?)
WTO’s Warning: The World Trade Organization issued a big, red “this is bad” flag, saying the ongoing U.S.-China trade war will shrink global trade and create “far-reaching consequences.” Spoiler alert: handmade brands like ours are on the front lines.
China’s New Trade Envoy: Li Chenggang is stepping in to try and ease U.S.-China tensions. We’re cautiously optimistic, but let’s just say we’re not holding our breath over here.
Two Lawsuits in One Week: California and a group of U.S. businesses are suing the Trump administration over “illegal” tariff hikes. Honestly, they’re saying what many of us are thinking—this isn’t sustainable.
Electronics + Auto Tariffs Paused: A small break? Maybe. The Trump administration delayed some electronics tariffs and hinted at temporary relief for the auto industry. That’s cute, but what about the rest of us?

Tariffs Are Real. And They’re Rough.

If you’ve followed my journey, you already know I own several handcrafted brands—made with love, intention, and yes, here in the U.S. But even with products made stateside, my packaging? That’s a whole other story.

Like many makers, I rely on U.S. suppliers... who source from China. Most glass bottles, droppers, sprayers, and specialty packaging? Yep, made in China.

So when the new tariff numbers hit, I braced myself. But I still wasn’t prepared for the email that made me spill my iced lavender matcha latte.

Real Numbers from a Real Handmade Brand Owner

I placed my usual fall packaging order early this summer. Here's the breakdown:

$8,000 in bottles (standard for our seasonal launch)
$8,000 to ship (normally $1,800—so yes, my jaw dropped)
$9,000 in tariffs and fees

Grand total? $27,000.

I wish I was kidding.

That's a 3X jump—on packaging alone. Not a new product line, not a marketing push, not payroll. Just. Packaging.

I stared at the invoice and honestly? I wanted to crawl back into bed. With my dog. And a weighted blanket. And maybe a good John Hughes movie playing in the background.

What This Means for the Rest of Us

If you’re running a small business, or even thinking of scaling one, you need to factor in volatility like this. It's not just “oh, prices are going up”—it's what the heck do I cut without cutting quality?

Do I:

Raise prices? (And risk losing customers)
Order less? (And risk running out of stock)
Switch packaging? (And lose brand consistency)

There are no easy answers. But here's what I do know:

3 Things You Can Do Right Now

1. Audit your supply chain. Ask your suppliers exactly where their materials come from—even if they’re U.S.-based. Transparency is key.

2. Get quotes early. Don’t wait. Ask for current and projected rates, including tariffs and fees. Build in that buffer now.

3. Consider domestic options. Yes, it might cost more upfront. But with the shipping and tariff chaos, “Made in the USA” is looking more attractive than ever.

The Silver Lining?

More brands are actively seeking out made in the USA perfumes, beauty products, and packaging solutions. There’s a growing demand for small-batch, artisan-crafted, local goods. At Wicked Good, we proudly offer a massive fragrance library and love helping brands —big and small— bring their custom scents to life right here in the States.

So while the world might feel a little upside down right now, handmade still has heart. And we’re not going anywhere.

Got questions about sourcing, tariffs, or wholesale workarounds? Drop them in the comments—I’ve probably cried over the same spreadsheet you have. :(