New "These Tariffs Aren't Our Fault" Surcharges Appear On Consumer's Bills

Rather than raising prices and assuming customers understand that the reason is increased tariffs on imported goods, many businesses, especially consumer-oriented companies- are adding an explicit 'Trump Tariff Surcharge' to their bills. 

This strategy is intended to recoup some of the financial impact that increased tariffs are having on cost of goods while making it clear that the new tariff policy rather than corporate greed is the reason for the price increase. JL

Natasha Khan reports in the Wall Street Journal:

From bathroom-fixture makers to toy shops, companies are starting to tack tariff surcharges onto invoices as a separate line item. Some are a $5 flat fee, while others represent as much as 40% of the subtotal. The tactic is a way to pass on at least some tariff costs to consumers—especially on Chinese-made goods, with levies totaling 145% since January—while passing the buck to President Trump. “It doesn’t cover the full cost—not even close—but it felt better than pretending everything’s fine. I’m not sure the average person truly understands that this (tariffs) is going to cost them more money."

An extra fee is showing up on more shopping bills lately, and it carries a not-so-subtle message: These tariffs weren’t our idea.

From bathroom-fixture makers to toy shops, companies are starting to tack tariff surcharges onto invoices as a separate line item. Some are a $5 flat fee, while others represent as much as 40% of the subtotal. The tactic is a way to pass on at least some tariff costs to consumers—especially on Chinese-made goods, with levies totaling 145% since January—while passing the buck to President Trump.

“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 American consumers,” said Ryan Babenzien, chief executive of Jolie, which sells high-end filtered shower heads. He plans to add a “Trump Liberation Tariff” to online orders in the coming weeks. Just how much, he said, depends on how the trade war develops and on Jolie’s tariff-cost calculations.

Dame, a sexual-wellness company, has added what it calls a “Trump Tariff Surcharge” of $5 to customer orders. It decided on the flat fee earlier this month when the Trump administration had imposed a 54% tariff rate on goods from China—about a third of the current total. To make extra clear who is responsible for the additional cost, the line item includes a tiny image of a hair piece that resembles President Trump’s swept-over style.  

“It doesn’t cover the full cost—not even close—but it felt better than pretending everything’s fine,” said Alexandra Fine, Dame’s chief executive. Dame’s vibrators are made in southern China, and Fine said she would need to consider raising the tariff surcharge if the Chinese-import tariffs remain at 145%.

“It’s about the statement,” she said. “We want to let people know how these policies are impacting all of us.”

Alexandra Fine is the chief executive of Dame, which added what the sexual wellness company calls a flat 'Trump Tariff Surcharge' of $5 to customer orders.Dame (2)

U.S. businesses with suppliers in China have deployed an array of moves to navigate the escalating trade war, front-loading inventory before the tariffs took effect, pressuring suppliers to absorb cost increases, and raising retail prices on products with bigger margins. Some, such as Jolie’s Babenzien, say it is important to spell out to consumers how tariffs will affect their budgets.

“I’m not sure the average person truly understands that this is going to cost them more money everywhere,” Babenzien said, adding that he is urging other business leaders to do the same. 

Jolie’s shower heads and filter refills are made in China, and the tariffs have raised the company’s costs substantially, he said. Trump has said the new tariffs will spur more manufacturing in the U.S. and boost the economy.

 

Among consumers, the reaction has been mixed. Some users on a Reddit discussion board hailed the surcharge tactic as an upfront way to show the cost of tariffs to companies and consumers. “That way there is no doubt what is going on. Hopefully people will wake up,” a commenter wrote. Others wondered whether explicitly tying the cost to Trump’s trade policy would alienate customers who support the president.

Some business leaders—such as BigBadToyStore’s founder and president, Joel Boblit—are emailing detailed letters to their customers explaining how the tariffs will affect their supply chains. On Wednesday evening, after Trump paused most tariff increases but not for China, Boblit told customers that the Wisconsin company would apply a tariff-related fee to preordered items.

“I absolutely hate increasing prices to you, but the tariff situation is beyond our control,” he wrote, pledging to reduce or remove the charge if the tariffs declined. 

He told customers they could cancel if they didn’t want to pay the additional fee. The charges would be 15% to 40% of the preorder price, he estimated.  

About 90% of the action figures and collectibles that Boblit’s company sells are made in China and Vietnam. The White House said this week that its tariffs on Vietnamese imports would remain at 10%.  

Chief Executive Scott Mencken says LittleMachineShop.com is considering its tariff pricing options. Photo: Thomas Williams

Scott Mencken, CEO of LittleMachineShop.com in Pasadena, Calif., is still weighing his tariff pricing options, including adding a specific surcharge to orders. In 2018, when the first Trump administration imposed Chinese-import tariffs of 25%, he ran a banner for months on the company’s home page explaining why and how it was raising some prices, while absorbing the remainder of the tariff costs. The company sells benchtop lathes and machines to researchers, hobbyists and other customers; nearly all are imported from China.

For now, as Mencken thinks through the tariffs’ effect, the company is sticking to its existing pricing.

“We’re going to keep our eyes closed, our fingers in our ears, and turn the music up even louder for another week,” the company wrote in an email to customers this week. “Our oblivion is your bliss with this month’s SALE items!”