🔥 How Tariffs Are TAXing Emerging Brands—and What They're Doing to Survive 🧨
- Kyle Frazier
- May 14
- 6 min read
Why This Matters
Let’s be real—most people don’t want to read another article about tariffs—at least not from me. This article isn’t about the stock market or politics. It’s about what happens when global economics crashes into local business—and how a new wave of entrepreneurs is responding by showing up with transparency, grit, and creativity.
Across the country, founders are turning complex challenges into teachable moments, pulling back the curtain on rising costs, fragile supply chains, and why prices are going up. What’s remarkable isn’t just the impact—it’s the way they’re communicating it: through vulnerability, clarity, and……connection.
In this piece, I highlight how two leaders—Andrew Chen of 3sixteen and Haley Pavone of Pashion Footwear—took control of the narrative and turned potential backlash into community-building moments. Their stories are more than case studies—they’re a playbook for how modern brands can respond when the rules of business suddenly change.
BRAND LINKS:
3sixteen - (LINK)
Pashion Footwear - (LINK)
🔥 A Viral Call to Action: When Small Business Meets Big Policy
Haley Pavone, founder and CEO of Pashion Footwear, recently lit up social media with a viral video that struck a nerve far beyond her own customer base. Shared by none other than Mark Cuban, the post wasn’t just a clever skit—it was a visceral glimpse into the mounting pressure entrepreneurs are facing as they try to navigate the realities of global manufacturing and unpredictable U.S. trade policy.
VIRAL VIDEO: (LINK)
“A HUGE thank you to Mark Cuban for sharing my tariff commentary with his following on X.” (LINK)
🧨 Tariffs are TAXing Emerging Brands: The Tipping Point
For emerging brands, margins are everything. Tariffs don’t just inflate prices—they destabilize entire business models. Pavone’s message cuts through the noise: she’s not choosing overseas production out of convenience—she’s doing it out of necessity. But instead of support, founders like her are facing punishment.
“If there were viable options here, I’d use them. But they don’t exist at scale—for footwear or most apparel.”
The video became more than just a viral moment. It became a rallying cry for the small business community—one that laid bare a hard truth: you can’t onshore manufacturing if the infrastructure isn’t there to support it. And asking founders to absorb massive, immediate cost increases?
That’s not just unrealistic—it’s unsustainable.
⚠️ A System at Risk
Pavone’s tone—equal parts sarcastic and exhausted—mirrors the broader sentiment in the entrepreneurial space. Small businesses have already weathered pandemic-era pivots, supply chain breakdowns, recessions, and the last round of trade wars. This latest wave of tariffs feels like another blow in a series of policy decisions that don’t take their reality into account.
Her reel didn’t go viral because it was entertaining—it went viral because it was true. And if policymakers and consumers don’t start listening, we risk crushing the very innovation, creativity, and growth that small businesses bring to the economy.
🎥 Speaking Out: How 3sixteen Took the Lead
In a recent video that went viral within the menswear and streetwear communities, Andrew Chen, co-founder of the New York-based label 3sixteen, broke down how new tariffs are affecting his business. Speaking candidly to the camera, Andrew didn’t spin a narrative—he spoke from the heart.
His message resonated: people care. Customers wanted to understand why prices were rising, and fellow brand owners nodded in quiet solidarity. It was a moment that turned a complex economic policy into a human-centered message.
I decided to write about Andrew because it’s rare to see brand founders speak this plainly—and vulnerably—about the pressure they’re under. Andrew didn’t just explain the issue; he created space for dialogue, accountability, and awareness in a time when many are still trying to wrap their heads around what tariffs actually mean. For me as a brand strategist and a fellow founder, this wasn’t just about economics—it was about leadership. And right now, our industry needs more of that.
VIRAL VIDEO: (LINK)
📉 The Real Impact of Tariffs on Small Brands
1. Increased Costs Across the Board
Tariffs add significant cost to importing raw materials—especially from countries like Japan, India, and Portugal. For brands like 3sixteen that rely on specialty Japanese denim, a 24% tariff increase means that a $10 raw material bump can result in $40–$50 in retail price hikes.
This inflation cascades across wholesale and direct-to-consumer channels. For small brands, there’s often no buffer—every extra cost counts. (LINK)
“Somebody has to pay the cost. It’s going to be either the brand, or it’s going to be passed down to the customer.”
2. Uncertainty in Pricing and Production
Tariffs often hit with little notice, causing havoc in planning. Brands commit to pricing months in advance, especially when selling to retailers during market week. If tariffs kick in mid-production, brands are stuck with a financial gap they didn’t budget for. (LINK)
“It’s very hard to pre-sell a garment at a certain price and then have to accommodate additional tariffs when the garment is arriving.”
3. Deteriorating International Markets
Retailers overseas are now more hesitant to stock U.S. brands. Fluctuating costs and retaliatory tariffs make it harder for stores to invest in American-made or American-designed products. (LINK)
“Even if they love the brand, buying from Japan might just be the smarter business move.”
4. Tariffs Don’t Lead to Domestic Reshoring
One common misconception: tariffs will encourage local production. But for niche or heritage products like selvedge denim, the infrastructure simply doesn’t exist domestically in the same way.
“What tariffs do not do is guarantee a move back to domestic manufacturing.”
“Brands don’t outsource (outside of the US) to cut corners—they source where the craftsmanship is. That’s what customers expect. The market has to listen to the demand for quality.”
📣 How Brands Can Communicate About Tariffs Without Losing Their Voice
Yes, tariffs are technical—but your community cares about why your price went up, not just that it did. Here are four ways to weave the impact into your brand storytelling:
1. Turn Transparency into Content
Break down cost changes with visuals, short videos, or carousels. A Reel that explains how a $10 tariff turns into a $50 retail increase goes a long way in building understanding.
2. Document the Journey
Let people in. Share updates on shipment delays, customs issues, or sourcing pivots in real-time. Your audience respects vulnerability, especially when paired with purpose.
3. Feature the Global Partners Affected
Introduce the makers, mills, and factories feeling the impact alongside you. This honors their craft and builds emotional equity in the product.
4. Use Tariffs as a Launchpad for Bigger Conversations
Whether it's about sustainability, conscious consumption, or economic equity, connect tariffs to your larger brand ethos. Host lives, write blogs, and create conversation.
🔍 Final Thoughts
Tariffs may seem like an abstract political tool—but for small brands, they are TAXing emerging brands. As the global trade landscape continues to shift, it’s more important than ever for emerging brands to advocate for themselves, educate their communities, and build resilience through transparency.
Founders like Andrew Chen and Haley Pavone are showing us what real-time leadership looks like. Whether it’s Andrew breaking down complex cost structures or Haley using sharp wit and sincerity to call out flawed trade logic, both sparked moments that transcended product and policy. They reminded us: speaking up isn’t just brave—it’s brand-building.
When brands are transparent and share not just their wins—but the struggles they face—the connection deepens, and the impact builds brand loyalty.
Brand Loyalty is a win—and the goal!
📣 Let's Keep This Conversation Going
This story is just the beginning. If you’re a founder, maker, or creative navigating rising costs and changing rules—your voice matters. Share your experience, amplify others, and help push the narrative forward.
✅ Have a tariff story or creative workaround worth spotlighting? DM me. Let’s build a thread of real stories and strategies.
🔁 Found this valuable? Share it. Comment with your take. The more we talk about this, the more pressure we apply to rethink how policies impact real people behind the brands we love.