An Atlanta tariff tale, told through a towel company
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Illustration: Sarah Grillo/Axios
The ripple effects of President Trump's sweeping new tariffs will touch nearly every company you can think of. And maybe some you don't.
The big picture: The Trump administration is betting that high tariffs will resurrect the U.S. manufacturing industry, creating jobs and increasing investment at home.
- But domestic manufacturing isn't always a viable alternative for companies currently relying on overseas producers.
Driving the news: Weezie, an Atlanta-based textile company that makes luxury towels, shower curtains, slippers and bath products, says the proposed tariffs could dramatically reshape its supply chain and pricing strategy.
Catch up quick: Founded in 2018, the woman-owned primarily bootstrapped company represents a new generation of nimble, digital-native brands.
- Weezie has 55 employees, most of whom live in Atlanta, and revenue has increased 40% every year, CEO and co-founder Lindsey Johnson told Axios.
Threat level: The majority of Weezie's suppliers are based in the European Union, which is facing a 20% tariff under Trump's trade plan on top of a current 9% duty, she said. The company's signature towels are made in Portugal.
- The company was expecting tariffs, Johnson said, but "we were not prepared for the magnitude."
- Johnson said they discovered at the time of the company's launch that U.S. textile mills lacked the quality and capacity Weezie needed to make its products.
State of play: In the days since Trump's announcement, Johnson and her team have spent their time analyzing each individual product — they have hundreds, if not thousands of variations, she said — for potential price adjustments and game-planning scenarios.
- In addition to raising prices, she said, possible approaches include renegotiating supplier deals, revising growth plans and even overhauling their entire manufacturing strategy.
What's next: Johnson hopes that the U.S. and other countries can strike deals to reduce tariffs. If not, they'll consider shifting suppliers to countries with lower rates and comparable quality.
- And in regards to higher prices, Johnson said, "my hope is that our customers understand and come along with us."