DTC762: How Brands Are Preparing for Trump’s Tariffs

Good morning,

Here’s what you’ll find in today’s DTC:

😬 Surviving Trump’s Tariffs  
Solutions for brands impacted by tariffs.

🔒 Secure Your Meta Account!
Avoid getting hacked with these expert tips.

🫒 Graza’s New Drop
The viral olive oil brand expands its lineup.

You’re reading this newsletter along with new subscribers from: Gemcore Health, Happy V, and Saltbox. 👋

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😬 Brands Brace For Upcoming Tariffs

With Trump’s tariffs and inflation, DTC brands are facing a challenging year ahead.

Companies are restructuring operations, offloading assets, and adjusting supply chains to stay competitive.

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How brands are responding:

• Blume: CEO Taran Ghatrora shared how she was mitigating tariff risks, including mapping supplier impacts, exploring logistics alternatives, and revising pricing strategies if needed.
• Canadian Tire: Sold its activewear brand Helly Hansen for $1.3 billion to create financial flexibility ahead of U.S. tariffs.
• Temu: Shifted its supply chain model, requiring factories to bulk ship directly to U.S. warehouses instead of relying on Temu to manage shipping and pricing.

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For brands impacted by tariffs, here are some next steps:

1️⃣ Audit Supply Chains: Identify tariff-exposed suppliers and explore alternative manufacturing locations.

2️⃣ Reevaluate Pricing and Margins: Adjust pricing strategies to maintain profitability while staying competitive.

3️⃣ Diversify Logistics: Work with shipping partners to find cost-effective routes and avoid tariff-heavy regions.

4️⃣ Secure Financial Flexibility: Consider offloading non-core assets or raising capital to withstand volatility.

5️⃣ Adapt Business Models: Like Temu, brands may need to adjust fulfillment strategies to offset increased costs.

2025 will test DTC brands’ ability to stay agile, but those who plan strategically can navigate the challenges ahead.

We want to hear from you. What are some tactics your business is implementing to combat tariffs?

📉 RedNote’s Growth Slows Down

The Chinese social media app RedNote saw a mass migration of ‘TikTok refugees’ last month during the U.S. TikTok ban, but it looks like downloads of the social app have slowed significantly.

Downloads have plummeted 91% since TikTok was relisted on the Apple and Google Play app store.

✨ Ready to Make Things Easier? Simplify Tax Compliance Across All Sales Channels

😵‍💫 Managing tax compliance can be complex, especially when selling across multiple channels. But there’s no need to stress.

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They’ve put together a handy infographic that lets you discover how Avalara tools can help you:

• Ensure more accurate tax rates across all sales channels
• Simplify tax recalculations upon product return
• Handle exemption certificates seamlessly
• Scale tax compliance to meet growing demands

Say goodbye to tax headaches.

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🌟 Discover how to enhance efficiency and improve compliance across all channels.

❗ Secure Your Meta Account and Avoid Getting Hacked!

Whether you’re new to the space or a seasoned veteran, ensuring your Facebook account and Business Manager are secure is crucial.

The Pilothouse Meta team regularly reviews security to ensure no funny business in their accounts.

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These are a few things to look into and lockdown:

• Turn on 2-factor authentication for all users in your Business Manager account. This is a quick way to ensure you and your team members are less likely to get hacked.

• Check the security tab within Business Manager for any flags or new recommendations from Meta.

• Do a sweep of users and pages connected to your BM. If you no longer work with an influencer partner, for example, it’s a good idea to disconnect your BM from theirs in case of any issues.

• Limit admin access to team members who truly need the highest level of access available and set others up as employees.

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👉 It is recommended that you have two backup admins in your BM, so try to find a balance between having enough admins but not too many.

• Double-check active third-party integrations. Disable anything that you’re no longer using.

• Verify your domain in Brand Safety. Here’s more information on Domain Verification.

• Double-check ad spend limits. If someone were to hack your account, having a spend limit would ensure they can’t spend an outrageous amount.

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Spend limits can be set up in the Payment settings. Find more information here.

Implement these security tips right away so your accounts stay secure. 🔒

🫒 Graza Adds ‘Frizzle’ To Its Line Up

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Attention foodies: Graza just launched a new product named Frizzle.

The disruptive olive oil brand debuted their new high heat cooking oil, which is perfect for baking, grilling, and frying.

The product is available in three formats: their signature squeeze bottle, a spray bottle, and a 2L jug (a first for the brand).‍

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💸 MERGERS & ACQUISITIONS

• Patlytics raises $14 million for its patent analytics platform.
• Raise secures $63 million in funding to build a blockchain-backed gift card program.
• Photo-sharing app Yope raises $4.65 million on a $50 million valuation.

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⚡ QUICK HITS

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📅 EVENTS

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Million Dollar Sellers Inspire - This conference brings together 500+ high-achieving ecommerce entrepreneurs. Speakers include successful entrepreneurs like Brez, Lee Assoulin, Matt Greene, and many more, sharing proven tactics and insights.

🗓️ Mar 24-25, 📍 Las Vegas, NV 💰 Register To Attend

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📥 Got a B2B Biz?

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Have you heard our latest podcasts?

• 🧠 TWBERP 22: Cognitive Biases Every Marketer Should Know
• 🥂 How Soberish Built a $1M+ DTC Brand Without Ads
• ⚡ AKNF 484: How To Track Customer Lifecycles Metrics
• 💡 TWBERP 21: What’s Next for Email and Retention?
• 👞 Scaling Portland Leather Goods to a 9 Figure Brand
• 🛍️ AKNF 482: Optimize Amazon Merchandising To Maximize Sales

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Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)

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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

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