The Cost of Doing It Right: How Tariffs Are Undermining Small U.S. Manufacturers

At Peridot Clothing, we proudly design and manufacture every garment in our Michigan studio. From festival outfits to performance wear, each piece is handcrafted by a small, dedicated team committed to ethical production, artistic expression, and keeping jobs in the United States.

But despite doing everything “right,” we’re being hit from all sides—by rising tariffs, shrinking margins, and an increasingly unstable economy. And it’s threatening the future of small, American-made brands like ours.

Imported Fabric, Made-in-USA Product

Even though we produce locally, the specialty fabrics we use—like holographic foils, 4-way stretch spandex, glitter mesh, and metallic velvets—are rarely manufactured in the U.S. These materials are niche, high-performance, and fashion-forward. Domestic mills have either shut down or shifted their focus to other sectors, leaving us with no real alternative but to import.

And now, due to tariffs, the price of those imported materials has increased by 30% or more. That cost hits us directly—before we even cut or sew a single garment.

Labor Costs Are Rising (As They Should)

Our employees are talented artists and technicians. They deserve to be paid fairly—and we’re proud to compensate them in a way that reflects their skill and the growing cost of living. As inflation affects every aspect of daily life—from rent to groceries to childcare—it’s more important than ever to invest in the people who make our business possible.

But rising labor costs, combined with inflated material costs, create a difficult balancing act. We want to keep prices fair for our customers—but we also need to remain sustainable for our team.

Sales Are Slowing

Understandably, many customers are pulling back. With inflation and economic uncertainty, people are rethinking their spending. That caution is valid—but it’s also devastating to small businesses. Our material and labor costs are going up, while sales are slowing down. That gap leaves very little room to breathe.

Tariffs Don’t Just Hurt Big Business

Tariffs are often framed as tools to protect domestic industry—but what happens when the raw materials we need simply don’t exist here anymore? For businesses like ours, tariffs don’t promote reshoring—they punish small-scale manufacturers who are doing their best to build something locally and ethically, using the only resources available.

Behind every order is a real person who patterns, cuts, sews, and finishes each garment by hand. When you support a small business like ours, you’re not just buying clothing—you’re sustaining jobs, fueling creativity, and helping a community survive in an increasingly difficult economy.

Why This Matters Beyond Our Business

This isn’t just about one clothing brand. It’s about the larger ecosystem of American makers, artisans, and independent businesses who are trying to do things ethically and sustainably. When we talk about reviving American manufacturing, small businesses like ours should be at the heart of that conversation. But current tariff policies are making it harder for us to stay in business—let alone grow. If the system keeps working against the people trying to build something better, the result will be fewer local jobs, fewer creative brands, and fewer real choices for consumers who want to shop with intention.

How You Can Help

If you love what we do and believe in supporting small American businesses, here are a couple of ways you can make a big impact:

✨ Shop small whenever you can. Every order helps keep our team employed and our craft alive.
✨ Share our story. Tell a friend, repost our content, or tag us when you wear your pieces. Visibility matters more than ever.
✨ Let policymakers know that small businesses deserve support. Tariffs shouldn’t punish the makers who are trying to build locally and sustainably.

We’re not going anywhere — but we need our community more than ever. Thank you for standing with us. 💛