The controversial new surcharge already being added to receipts after Trump's tariffs
Companies have begun to strike back at President Donald Trump's tariffs by adding a new surcharge to shoppers' online carts making it all too clear who they think is responsible.
Because using Trump's name could alienate some customers, some businesses are simply calling it a 'tariff surcharge.' Others are not afraid to possibly incur the wrath of MAGA supporters.
Jolie, a New York-based skincare brand that creates showerhead filters, announced that it would be putting in a 'Trump liberation tariff' fee at checkout on all orders starting next week.
'We think transparency is the way to go here and I am giving Trump full credit for his decision to add this Tariff to all US consumers,' said Ryan Babenzien, the founder and CEO of Jolie.
'Technically WE are not raising our prices, but the Tariff will make it more expensive for American consumers to buy a Jolie,' he added.
Babenzien told Bloomberg that he is still calculating what the fee will be on top of the cost of a $150 showerhead.
Jarrad Berman, partner at the New York private equity firm, told the outlet that these kinds of surcharges are most appealing to small businesses with customers that often only buy one or two items. He also said most customers will only tolerate a fee of less than $10.
'Everyone is discussing tariff surcharges,' Berman said. 'It's just not one size fits all.'
Ryan Babenzien, the founder and CEO of Jolie, a skincare brand that makes showerhead filters, announced that he'd be putting a 'Trump liberation tariff' fee at checkout on all orders starting next week
Dame, a sexual wellness brand that makes sex toys, has put a $5 'Trump tariff surcharge' on all of its vibrators, which are imported from China
Dame, a sexual wellness brand that makes sex toys, has put a $5 'Trump tariff surcharge' on all of its vibrators, which are imported from China.
The fee is accompanied by an image of Trump's unique and enduring hairstyle.
Although the White House initiated a three-month pause Wednesday for reciprocal tariffs on dozens of nations, the United States is still very much in a trade war with China.
Effective tariffs on Chinese imports are now 145 percent, and it has likewise slapped the US with 125 percent levies. This is the result of months of tit-for-tat escalations.
Dame CEO Alexandra Fine told CNBC her $5 fee won't cover the manufacturing costs, but she said its more about signaling that businesses like hers are being affected negatively.
'So we've made the tough call to adjust prices to be able to keep bringing you the quality, body-safe products you love,' Dame captioned an Instagram post about the surcharge.
'We're adding $5 for now—which doesn't cover the full cost as we hate to put the brunt of this on you—while we figure out what to do next.'
'We are renegotiating again with our manufacturers. We are adjusting our logistics. We are changing our inventory,' Fine said.
Fine said she couldn't add the surcharge as a percentage on Shopify, where Dame runs its website, so she instead had to use a flat fee.
Dame CEO Alexandra Fine has taken the most aggressive approach when it comes to laying the blame for price hikes on Trump
President Donald Trump announced reciprocal tariffs on dozens of nations on April 2, which he deemed 'Liberation Day'
A week later, he announced a 90-day pause after days of turmoil in the stock market and US bonds
Labucq, which sells high-end shoes made in Italy, said a 20 percent US tariff on imports from the European Union, which Trump announced on April 2 before pausing them, would require the company to raise prices by 10 percent starting on April 15, CBS News reported.
Labucq hasn't addressed the pause on EU reciprocal tariffs, but had said there would be another 10 percent price on May 7 to so it would 'remain sustainable.'
Larger companies are also scrambling to make adjustments in the new tariff-heavy trade environment.
In early March, Honeywell Building Automation, which designs safety systems for buildings, began applying a 6.4 percent tariff surcharge on all of its building management systems, excluding software and subscription services.
The move was in response to Trump's tariffs on China, but also Canada and Mexico, countries that now enjoy a carveout for goods imported through the USMCA trade deal.
Honeywell also said it would eliminate the extra duty 'as soon as such tariffs are no longer in force.'
Last month on a quarterly earnings call, a senior executive with US chip maker Micron said that some of the company's products will be affected by the tariffs on China, Canada, and Mexico. The plan is to 'pass those costs along to our customers.'
Some firms are trying to capitalize on the tariffs now that they've been paused by running limited-time-only sales telling consumers to lock 'pre-tariff' prices.
Burlap & Barrel, a company that imports spices from all around the world, just announced a 'spring cleaning-turned-impromptu Tariff sale' and lowered the prices for all its products by 20 percent (Pictured: The company founders pose with their spices)
'The tariffs are injecting uncertainty into the marketplace and when there is high uncertainty, consumers tend to overestimate their losses, so they try to hedge their losses as much as possible in a very irrational way,' Denish Shah, professor of marketing at Georgia State University's Robinson College of Business, told CBS News.
Shah added that since consumers are 'very price-sensitive' they are likely to 'react very strongly to sales that companies are promoting.'
Burlap & Barrel, a company that imports spices from all around the world, just announced a 'spring cleaning-turned-impromptu Tariff sale' and lowered the prices for all its products by 20 percent.
'When we planned this sale, we thought it'd be a routine springtime promotion, but in the last few days it has turned into something very, very different,' the company wrote in an Instagram post.
'We can already see that the new tariffs will be bad for our business. How bad remains to be seen,' it said, citing the fact that American trade policy has been subject to many sudden changes.
Another company, Freewrite, sent an email to customers on Friday urging them to buy its digital typewriters before it has to raise prices on its China-made products.
'Everyone, including our contract manufacturing partners, is helping us explore our options, but the truth is that it is incredibly difficult to move factories. It takes careful planning, huge expense and much more time than we have,' Freewrite CEO Adam Leeb wrote in the email.
'On Monday, we will be raising prices. Not because we want to, but because we have to,' he added.
