The handmade marketplace Etsy is facing significant challenges as new tariffs imposed by the Trump administration may lead to increased prices or the potential disappearance of beloved products. Small business owners like Kellie Abernethy, who found success creating jewelry to commemorate lost children, are grappling with the financial implications of these trade policies.
In March 2020, after enduring a miscarriage, Abernethy turned a moment of grief into creativity by crafting a necklace that featured preserved baby’s breath, a symbol of everlasting love. This personal project blossomed into her business, Rest of the Nest, which has since become a full-time venture. However, the recent introduction of a 30 percent tariff on imports from countries like China, where she sources her rose gold, threatens her ability to continue producing her bestselling item.
The new tariffs, part of a broader trade policy aimed at boosting domestic production, have placed small businesses in a precarious position. With the de minimis exemption—which previously allowed for tax-free imports valued under $800—now eliminated, sellers face even steeper costs. Abernethy expressed her concern, stating, “If I raise prices, I risk pricing myself out of the market. If I cut the necklace entirely, it would mean ending sales of my bestseller.”
Women entrepreneurs, who make up approximately 40 percent of U.S. businesses, are particularly vulnerable. Statistics from the U.S. Small Business Administration reveal that about 90 percent of women-owned businesses operate without employees, making them reliant on personal investment and loans. This financial strain is exacerbated by the changing trade landscape, with tariffs reaching as high as 50 percent on goods from countries such as India, a key supplier for jewelry and apparel.
Many Etsy sellers are feeling the weight of uncertainty as they navigate these new tariffs. Carley Zuercher, an Etsy seller and business consultant, noted the stress among her clients, many of whom are mothers seeking flexible business opportunities. “Everyone is pretty nervous,” she said, reflecting the collective anxiety of small business owners who feel as though they are “holding their breath waiting for the next shoe to drop.”
The situation is further complicated by fluctuating tariff rates and legal challenges. In late August, a federal appeals court ruled against some of Trump’s tariffs, including those affecting imports from China, Canada, and Mexico. Although the ruling is not set to take effect until mid-October, the uncertainty surrounding the outcome leaves sellers in a difficult position.
Zuercher highlighted the logistical challenges of sourcing materials domestically, which often come at a higher price. She pointed out that simply because a product is made in the United States does not guarantee it meets the quality standards that customers expect. Sellers must also account for the potential need to photograph and market new products, adding to their workload.
The impact of these tariffs extends beyond small business owners to American consumers as well. In the United Kingdom, where a 10 percent tariff is currently in effect, Etsy sellers are struggling to adapt to the new pricing structures. Lauren Keating, a Manchester-based Etsy seller, described the confusion surrounding who is responsible for paying these tariffs. Many of her clients rely on U.S. customers for a substantial portion of their sales and are concerned about losing business due to increased prices and potential shipping delays.
As larger corporations may have more resources to manage these challenges, the plight of small businesses illustrates a larger issue. The handmade goods market, which has been significantly influenced by women entrepreneurs, faces an uphill battle in maintaining consumer interest when prices rise. Nicole Arnett Sanders, a marketing expert and former Etsy seller, emphasized that these policy changes are forcing sellers to choose between absorbing unsustainable costs or losing customers to cheaper, mass-produced alternatives.
For Abernethy, owning a small business represented the chance to pursue her passion while balancing family life. As she reflects on her journey, she worries that the benefits of entrepreneurship are being overshadowed by the complexities of government policies. “At the core of it, it feels like small business owners are getting lost in the shuffle,” she said.
The ongoing tariff changes present a significant challenge for Etsy sellers and other small business owners, particularly women, who have found creative outlets and financial independence through their crafts. As they confront rising costs, the future of their beloved products—and their businesses—hangs in the balance.
