MillyRose Crafts Tariff Updates: Navigating the Shifting Sands of US Trade Policy and Its Impact on You

MillyRose Crafts Tariff Updates: Navigating the Shifting Sands of US Trade Policy and Its Impact on You 

At MillyRose Crafts, we believe in transparency and keeping you, our valued customers, informed. The world of international trade can be complex, and recent shifts in US trade policy, particularly concerning tariffs, are impacting businesses like ours that source and ship craft products globally. This post provides an update on the situation, explaining how these changes are affecting our operations and what it means for you. 

Our aim is to strike a balance: to maintain the economic health of MillyRose Crafts while continuing to offer you high-quality craft supplies at prices that remain competitive and affordable. We understand that changes to our pricing or shipping policies can be frustrating, so we want to clearly explain the reasons behind them. 

The End of an Era: Saying Goodbye to Free Worldwide Shipping (For Now) 

For the past four years, we've been proud to offer free shipping to all our customers worldwide. This was a commitment we were able to make thanks to relatively stable base product costs and consistent shipping rates from our suppliers in various countries. We were able to absorb minor cost fluctuations and maintain consistent pricing, which we knew was a cornerstone of customer satisfaction. 

Unfortunately, the landscape has shifted dramatically in the last three months. The increasing tariffs being levied on goods entering the US, while primarily aimed at China, are creating ripples across the global supply chain, impacting our suppliers and our ability to maintain that previous level of pricing consistency. 

Why Direct Shipping Matters and Why It's Being Challenged 

MillyRose Crafts has long favoured direct shipping from our suppliers to you, the customer. This decision wasn't made lightly. We chose this route for two key reasons: 

  • Minimize Shipping Times: By shipping directly, we aimed to get your orders to you as quickly as possible, bypassing lengthy warehousing and redistribution processes. 

  • Mitigate Shipping Costs: Direct shipping allowed us to cut out intermediary warehousing and handling costs, translating into savings that we could pass directly on to you in the form of lower product prices. 

This direct-to-customer model has been beneficial for both us and you. However, this strategy is now being challenged by the evolving and often unpredictable tariff landscape. 

The Impact on Our Key Suppliers and Products 

Understanding the specific impact on different regions is crucial to grasping the challenges we face. While we work with suppliers in the EU and UK, a significant portion of our products, especially in categories like cross-stitch kits and 3D puzzles, come from designers based in China. Therefore, the US-China trade situation has a particularly strong influence on our business. 

The US Tariff Situation: A Breakdown of the Issues 

The US market is incredibly important to us, which is why we are so intently focused on how these tariffs will affect our relationship with our American customers. Here's a detailed look at the issues we're currently facing: 

  • Suppliers Increasing Base Prices for US Orders: Our suppliers are reacting to the tariffs by increasing the base prices of their products specifically for orders destined for the US. This price increase reflects the increased cost of doing business for them due to the tariffs levied on goods they export to the US. 

  • Higher Shipping Costs for US Customers: In addition to higher base prices, suppliers are also adding increased shipping costs specifically for US orders. This is likely due to increased scrutiny and potential delays at US customs, leading to higher overall shipping rates. 

  • The Elimination of the $800 De Minimis Clause: Previously, goods valued under $800 entering the US were exempt from import taxes under the de minimis rule. The removal of this exemption has major implications for us. It means that all craft orders, regardless of their value, are now potentially subject to import taxes and duties. This adds another layer of cost and complexity to the process. Previously, customers rarely incurred extra fees on products as they were below this value. 

  • New Customs Tariffs, Potentially Doubling Product Costs: Perhaps the most concerning development is that some suppliers are now implementing a new tariff explicitly designed to cover customs charges and duties. In some extreme cases, we've seen this tariff potentially doubling the overall product cost. This dramatically impacts our ability to offer competitive pricing. 

The Uncertainty at US Customs: A Significant Hurdle 

One of the biggest difficulties we face is the inherent uncertainty surrounding how these tariffs will be applied and collected at US customs. While our suppliers, and thereby us, may attempt to prepay a tariff based on their understanding of current regulations, we cannot guarantee that this prepayment will be sufficient to cover all charges. 

This means that, in some cases, a tariff may not have been prepaid by our supplier. In these situations, we can only assume that US customs will likely require payment directly from you, the customer, in order to release the shipment into the US. This creates a frustrating situation where you may face unexpected charges upon delivery, charges that we would have no control over.  We continue to manage this element closely and welcome all feedback from customers regarding their individual experiences which will help us to forward plan and adapt. 

The Ripple Effect: Slower Delivery Times 

The impact extends beyond just increased costs. These tariffs are also affecting delivery times. We're seeing orders leave our suppliers in a timely manner, but then experiencing significant delays once they reach US customs. These delays can range from a few days to a week or even longer, causing frustration and inconvenience for our customers. We understand how important it is to receive your crafting supplies promptly, and these delays are something we are actively trying to mitigate. 

Navigating the Storm: Our Approach to Minimising the Impact 

Given this climate of uncertainty, we are actively exploring various strategies to minimize the negative impact on you, our customers. We want to avoid higher and potentially unknown charges for you, while also ensuring the continued viability of MillyRose Crafts. 

Our primary challenge is to manage these escalating costs while ensuring that our products remain good value for money, based on current global market conditions. We are committed to finding the best possible solution for our customers. 

Our Options: A Look at the Strategies We're Considering (and Rejecting) 

We're carefully considering all options to find the best approach for our customers. Here's a breakdown of some of the strategies we've considered, and our rationale for either pursuing or rejecting them: 

  • Simply Increase Our Base Price for Everyone (Rejected): This would be the simplest solution for us administratively. However, it would be highly unfair to our UK and EU customers, who are not directly affected by many of the US tariffs. We are firmly committed to avoiding this approach, as it would penalize customers who are not impacted by the US trade policies. 

  • Create Separate Listings for US and UK/EU with Different Prices: In situations where suppliers are offering vastly different base prices for US and UK/EU orders, but haven't adjusted their shipping costs accordingly, we may consider creating separate product listings with different prices for each region (US only vs. UK/EU). This would allow us to accurately reflect the increased costs for US customers while maintaining lower prices for our UK and EU customers. This approach allows us to tailor pricing based on the specific costs associated with each region.  This would only be done on new products going forwards as the task of retrospectively creating additional listings isn't tenable at this time. 

  • Removing "Free Shipping" from Existing Products: For some existing products, we may temporarily remove the "Free Shipping" option. This allows us to re-evaluate the pricing structure to ensure that we accurately reflect the current costs of shipping to different regions. This is a temporary measure that we will review as the situation stabilizes. 

We understand that these changes are unwelcome, and we sincerely apologize for any inconvenience they may cause. The current situation is entirely out of our control, but we are committed to doing everything we can to mitigate the impact on you, our valued customers. 

Looking Forward: Proactive Refunds 

We will undertake, once each order is processed, to look at the actual order cost (including shipping and supplier costs). If the actual cost is less than what you were charged, due to lower-than-expected shipping or supplier costs, we will issue a refund for the difference. We have done this in the past and are happy to pass any small savings back to you. This proactive approach is our way of ensuring that you always get the best possible price, even in these turbulent times. 

We thank you for your understanding and continued support of MillyRose Crafts. We are committed to navigating these challenges together and continuing to provide you with the high-quality craft supplies you love. We will continue to monitor the situation closely and provide further updates as needed.