The landscape for small business owners on Etsy is shifting dramatically as new tariffs threaten to increase costs and complicate operations. For many sellers, like Kellie Abernethy, the changes may force them to rethink their products or even cease operations altogether. Abernethy, who launched her jewelry business, Rest of the Nest, during a difficult personal time, now faces a 30 percent tariff on the rose gold she sources from China.
In March 2020, following a miscarriage, Abernethy created a necklace to memorialize her loss, which became a bestseller. Five years later, she has turned her passion into a full-time job. However, the recent imposition of tariffs has left her at a crossroads. The Trump administration’s trade policies have raised tariffs significantly, including the termination of the de minimis exemption, which previously allowed shipments valued under $800 to bypass tariffs. The cumulative effect of these changes has left many sellers grappling with the reality of increased costs.
Women-owned businesses have flourished on platforms like Etsy, with approximately 80 percent of sellers being female. Yet, the current situation is particularly precarious for these entrepreneurs. According to the Small Business Administration, women own about 40 percent of all U.S. businesses, with around 90 percent operating without employees. Many of these businesses struggle with access to capital and often rely on loans from family or friends.
Abernethy expressed her frustration, stating, “I feel frozen in fear a little bit. I’ve never done this to be rich. I just want to make a decent living doing something I feel deeply passionate about — that’s my American dream.” The looming tariffs have put that dream in jeopardy as she must weigh raising prices against losing customers.
The impact of the tariffs is not limited to sellers in the United States. In the United Kingdom, where a 10 percent tariff is now in effect, sellers are struggling to navigate the evolving trade landscape. Lauren Keating, an Etsy seller based in Manchester, noted that many sellers rely on American customers for a significant portion of their revenue. The rapid implementation of tariffs has created confusion regarding payment responsibilities and pricing adjustments.
As sellers like Keating work to adjust, they face additional challenges including potential delays at customs, higher shipping costs, and the risk of negative reviews due to customer dissatisfaction. Keating emphasized, “For lots of small businesses, the risk feels too high, so they’re choosing to stop selling to the U.S. altogether.”
The uncertainties surrounding tariffs have created a climate of anxiety among small business owners. Carley Zuercher, another Etsy seller and coach for small businesses, described the overwhelming pressure many entrepreneurs are under. “Everyone is pretty nervous,” she said. “I get this feeling that we are all collectively holding our breath waiting for the next shoe to drop.”
The inability to predict future costs complicates planning for these small businesses. Zuercher pointed out that sourcing materials within the U.S. may not be feasible for many sellers due to higher prices. This situation forces them to consider whether to absorb increased costs or risk losing customers to cheaper alternatives.
As the trade landscape continues to evolve, the downstream effects on the marketplace of handmade goods could be significant. Nicole Arnett Sanders, a former Etsy seller and marketing expert, remarked that the changes threaten to undermine a sector largely dominated by women. “Consumers love the handmade, but they don’t want to pay those prices when they go up,” she explained.
For Abernethy, her journey as a small business owner was meant to provide a balance between pursuing her passion and being present for her children. As she contemplates the future of her business, she reflects on how small business owners are often overlooked in broader trade discussions. “At the core of it, it feels like small business owners are getting lost in the shuffle,” she stated.
With the current climate posing significant challenges, the future for many sellers on Etsy remains uncertain. As they navigate these turbulent waters, the resilience and creativity that characterize these entrepreneurs will be put to the test.