In this episode of Seven Figures and Beyond, host Greg Shuey welcomes Greg Shugar—founder of The Tie Bar and owner of Beau Ties of Vermont—for a timely and eye-opening discussion on how newly imposed tariffs are threatening the future of small and mid-sized DTC brands. With tariffs on Chinese imports surging to as high as 145%, Shugar explains that these aren’t just duties—they’re effectively embargoes, crippling supply chains and forcing business owners to rethink how and where they manufacture. For brands relying heavily on Chinese factories for soft goods, the financial impact is immediate and significant, with very few straightforward solutions.

Shugar shares tactical insights from his own playbook, such as ordering excess inventory ahead of Chinese New Year, stockpiling under the de minimis import threshold, and experimenting with quiet, incremental price increases. He also warns of a looming crisis similar to the COVID-era supply backlog, where halted shipments could create a future bottleneck that drives up shipping costs and fuels broader inflation. While some brands are experimenting with emergency strategies like routing containers through countries with lower tariffs or temporarily pausing production, none of these options come without tradeoffs in time, money, or quality.

Beyond tactics, Shugar critiques the broader policy environment, arguing that the U.S. government has failed to offer a thoughtful or realistic roadmap for businesses to follow. If reshoring manufacturing is truly the goal, he believes it should be supported with tax credits, clear timelines, and exemptions for U.S.-based brands that rely on imported raw materials. Without that structure, brands are being asked to navigate an unpredictable landscape on their own. The big takeaway: unless something changes, this is not just a temporary disruption—it’s a structural shift that could reshape e-commerce and retail as we know it.

Episode Links

Greg Shuey LinkedIn: https://www.linkedin.com/in/greg-shuey/

Greg Shugar LinkedIn: https://www.linkedin.com/in/gregshugar/

Beau Ties of Vermont: https://www.beautiesltd.com/

Carrie Amber Intimates: https://www.carrieamber.com/

https://www.stryde.com/tarrifs-what-every-ecommerce-brand-needs-to-know/