Tariffs, Supply Chains & the Big Slow Down

Now that we’re starting month 2 of the shelter-in-place requirements, plus news that it’s extended at least another month, and probably longer, I’ve been spending a lot of time checking in with all my suppliers. I’ve been trying to get a better idea about what is likely to be out of stock, or delayed, back-ordered, not available, etc. Planning ahead is going to be key to keeping the business running smoothly, that much is clear.

The first casualty, not surprisingly, is some of the accessories, which come from China. The short handled body brush, the soap sacks, even the soap dishes, have been out of stock for months now, and when I checked in about their timeline, the news was grim. This is directly due to the trade tariffs put in place by our government. Contrary to what they keep saying, the tariffs are paid by the US consumer, not by China. The importers here who buy the products and bring them here to sell in the US are the ones who pay the extra fees, and those are passed on to us, the people buying the products - with much higher prices. The company who imports these here have stopped their orders with the manufacturer in China because the cost of goods would be so high that it’s not feasible as a resale item. Nobody would buy them at that price.

Their business is grinding down slowly with the inventory they had in place, and there is no end in sight for these tariffs, especially as the two countries are contentiously navigating the pandemic now. That means that I will also be out of stock of a few items. I have small-ish amounts of some things, no longer have soap sacks or the larger curved groove soap dishes.

I’ve adjusted the website accordingly, removing those items, plus those options from gift sets as well. Even if tariffs are lifted tomorrow, it’s a months-long process to begin manufacturing again, plus the timeframe of shipping cargo and customs. There is no foreseeable future. We’re all just winging it day by day.

The supply chains for my basic soap making ingredients seem to be intact, at least for now. Rumors of the Post Office not making it past June is a new worry. But we’ll save that for another day . . .