Podcast Summary: The Journal – "How One Business Owner Is Getting Ahead of Trump's Tariffs"
Introduction In the December 3, 2024 episode of The Journal, hosted by Kate Linebaugh and Ryan Knutson in collaboration with Jessica Mendoza, listeners delve into the intricate world of tariffs and their tangible impact on small American businesses. This episode spotlights Jason Juno, the entrepreneurial force behind Bare Botanics, a skincare company navigating the choppy waters stirred by former President Donald Trump's tariff policies.
Background on Jason Juno and Bare Botanics Jason Juno, the founder and owner of Bare Botanics, has a rich history of entrepreneurship that dates back to his childhood. As a fifth-grader, Jason began flipping iPod touches on eBay, showcasing his innate business acumen from a young age. "I have been selling online since I was the age of 10," Jason shares (00:58). This early start laid the foundation for his later ventures, including the creation of his own products like a travel pillow, affectionately dubbed his "schemes" by his parents.
Bare Botanics specializes in natural skincare products, including scrubs and body brushes. Jason's passion for skincare was ignited during his college years when he battled severe eczema. Dissatisfied with existing products, he ventured into creating his own, leading to the birth of Bare Botanics in 2020. "We made 5,000 units in my apartment... it was mania," Jason recounts (04:48), highlighting the grassroots beginnings of his now-thriving business.
Impact of Trump’s Tariffs on Jason's Business The episode zeroes in on the challenges faced by Bare Botanics amidst the looming threat of tariffs imposed by Donald Trump, who campaigned heavily on the promise of utilizing tariffs to bolster American manufacturing. Trump’s rhetoric on tariffs resonates in the podcast, quoting him directly: "If you screw us, we screw you," emphasizing his hardline stance (00:32).
Jason expresses his concerns: "There’s a real chance here of tariffs going up, and, yeah, we would be totally impacted," (01:07). The primary source of anxiety stems from the importation of body brushes from China, a product category heavily reliant on Chinese manufacturing. With Trump advocating for increased tariffs—potentially up to 60%—Jason anticipates significant cost escalations. "It makes that much of a difference. So to have a product that's now getting hit with a 60% tariff and to raise prices accordingly, that's really scary," he explains (07:12).
Jason's Response to the Tariffs Faced with the imminent threat of higher tariffs, Jason took proactive measures. On election night, sensing the shift in political winds, he immediately placed a substantial order with his Chinese suppliers to stockpile inventory. "I started messaging my suppliers... place a big order," Jason details (01:42). This strategic move aims to secure a year's worth of inventory, allowing Bare Botanics to navigate the tariff-induced price hikes without immediate disruption to their supply chain.
However, Jason remains wary of the long-term sustainability of this approach. "I did what I could do as a business owner and I stocked up. It's not going to last forever, but it gives me a little bit of reprieve," he reflects (15:47). The possibility of having to raise product prices—from $9 to $12 for body brushes—introduces concerns about consumer response and potential hyperinflation in low-priced goods (13:43).
Broader Implications for Other Small Businesses Jason's predicament is emblematic of the broader challenges faced by small American businesses amid shifting trade policies. While some companies diversify their manufacturing bases or move production domestically, Jason finds himself constrained by the non-existence of domestic suppliers for specialized products like body brushes. "The dry brush industry does not exist here... it's just a brush," he laments (11:21), underscoring the limitations small businesses face in adapting to sudden policy changes.
Moreover, the blanket tariffs across multiple countries diminish the feasibility of switching suppliers without incurring exorbitant costs. "China is offering a consistent quality product at a consistent price. What's the point of switching?" Jason questions (12:05), highlighting the economic deterrents to altering established supply chains.
Conclusion The episode paints a vivid picture of the ripple effects that national trade policies can have on individual entrepreneurs. Jason Juno's experience with Bare Botanics serves as a case study on resilience and strategic planning in the face of uncertainty. As tariffs loom, Jason's story underscores the delicate balance small business owners must maintain between operational sustainability and adaptability. The broader takeaway emphasizes the need for nuanced policy-making that considers the diverse landscapes of American businesses, ensuring that the pursuit of economic nationalism does not inadvertently stifle grassroots entrepreneurship.
Notable Quotes with Timestamps
- Donald Trump (00:32): "If you screw us, we screw you."
- Jason Juno (01:07): "There’s a real chance here of tariffs going up, and, yeah, we would be totally impacted."
- Jason Juno (07:12): "It makes that much of a difference. So to have a product that's now getting hit with a 60% tariff and to raise prices accordingly, that's really scary."
- Jason Juno (13:43): "And so I fear hyperinflation with low priced goods like these."
- Jason Juno (15:47): "I did what I could do as a business owner and I stocked up. It's not going to last forever, but it gives me a little bit of reprieve."
This summary is crafted to provide a comprehensive overview of the podcast episode, capturing the essence of Jason Juno's journey and the broader economic implications of tariff policies on small businesses.