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Good morning,
OOPS! I guess we planned our own April Fools’ campaign a few days too late… 🤪
In all seriousness, you may have noticed an extra email in your inbox from us on Friday afternoon. Our mistake, your gain. Enjoy your double dose of DTC content! ♥️
Here’s what you’ll find in today’s DTC:
📦 Tariffs Hit
How different types of brands are feeling the tariffs.
📱 Ban or Buyout?
Trump gives TikTok more time—here’s who’s still bidding.
🎨 This Trending Color Is Taking Over
How brands are using it in spring drops.
You’re reading this newsletter along with new subscribers from: Beltane Ranch, LeagueApps, and Petstock. 👋
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Tariff Tsunami: How 2025 Trade Policies Are Shaking Up Ecommerce
📦 Tariff Tsunami: How New 2025 Trade Policies Are Shaking Ecommerce Supply Chains
Overview of the Tariff Situation (Post-April 2, 2025)
On April 2, 2025, the U.S. introduced sweeping new tariffs as part of an aggressive new trade policy: a 10% baseline tariff on nearly all imports, with higher rates targeting countries like China.
Crucially, the U.S. also eliminated the de minimis exemption for parcels under $800 from China, meaning every small package now faces customs duties and full inspection.
These changes have direct implications for all ecommerce businesses in one way or another, especially those who rely on complex international supply chains.
Methodology
To illustrate the real-world impact, we examined three types of hypothetical T-shirt brands across different U.S. ecommerce models to show how different models are being impacted.
We used:
Each scenario includes a before-and-after breakdown of unit economics and highlights who will bear the cost, along with strategies for adapting.
Let’s get into it!
1️⃣ US-Based T-Shirt Brand Importing Goods from China
Example: A DTC apparel brand based in California selling graphic tees manufactured in Guangzhou, China.
Strategic Implications:
1. Import Duty Shock
2. Retail Pricing Pressure
3. Margin Compression Risk
🛠 Response Tactics
TL;DR Summary
A 54%+ effective tariff rate on Chinese-made goods pushes landed unit costs up nearly 30%, forcing U.S. brands to raise prices and accept margin compression. Sourcing alternatives, smarter product redesigns, and transparent pricing communication are key to staying competitive.
We also did this breakdown for: 👇
👉 To view the additional breakdowns, click here.
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By signing up with Walmart Marketplace, Luxe Weavers opened a new network of customers, tools for scale, and technical support that helped them grow. 🤝
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🔎 Trump Extends TikTok Ban Deadline by 75 Days Amid Ongoing Deal Talks
U.S. President Trump has signed an executive order extending the deadline for a TikTok ban by 75 days, just one day before it was set to take effect.
In a Truth Social post, Trump said his administration is making “tremendous progress” on a deal to keep TikTok operational in the U.S.
A proposal led by U.S. investors including Oracle, Blackstone, and Andreessen Horowitz is reportedly a top contender, though other bidders like Amazon, Walmart, and AppLovin remain in the mix.
The Chinese government would still need to approve any final agreement, and ByteDance has yet to indicate a willingness to sell. The extension follows Trump’s recent 34% tariffs on China—measures he suggested could be eased to help facilitate a TikTok deal.
Find more information in our news section below. 📰
📈 SEARCH SURGE
Why is this trending? Searches for butter yellow have been rising steadily since Timothée Chalamet arrived at the Oscars in a butter yellow suit and has quickly been declared as the color for spring.
Pinterest describes the color as “a pinch of playful and a dollop of whimsy.”
Brands like KitchenAid are celebrating the upbeat color and incorporating it in their latest product drops.
⚡ QUICK HITS
🧠 Wanna pick the brains behind your favorite brands? Attend 50 talks, panels, and workshops at GROW LA this April 23-24. Speakers from Dr. Squatch, Liquid Death, Fabletics, and more will be there! Apply for a complimentary ticket here. *
📰 NEWS
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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.
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