4월 09, 2025
Tariff Update: Wednesday, April 9, 2025.
Hello everyone,
As we all know, the current tariff situation is unfortunate. It is disheartening that two countries with a strong trade relationship are now facing difficulties. Avoiding the impact of these tariffs will be a challenge for us.
The United States-Korea Free Trade Agreement (KORUS FTA), officially known as the Free Trade Agreement Between the United States of America and the Republic of Korea, has been beneficial for both countries and has strengthened our economies. This trade agreement aimed to eliminate tariffs and barriers to trade in goods and services between the United States and South Korea.
However, given the current circumstances, the trade deal we have maintained since 2012 is no longer viable. We are now facing tariffs that will likely force us to increase our prices at some point.
We prioritize transparency with our clients and firmly believe that the final decision is yours to make. However, it is our responsibility to help you in the decision-making process when you work with us, so we will always be upfront about the challenges we encounter. We place a greater emphasis on the process rather than just the results, which means we do not want to rush into anything that might lead to complications or confusion for all parties involved. Therefore, we will keep you informed and guide you whenever there are updates or changes that need to be communicated.
We receive multiple pallets of shipments every month or, at the latest, every two months. Although we have a significant inventory in our California warehouse, it sells out quickly. With our current stock, the longest we can manage is two months. Recently, we faced our first 10% tariff on our latest delivery. After many sleepless nights and meetings, we decided to adjust our special offers, including the free gifts and samples we provide. As a result, you may have noticed that many gifts that were previously available for free with a purchase of $500 have now increased to $1,000, and a similar pattern applies to other gift tiers as well. We wanted to clarify this change to ensure you are not confused about the adjustments.
As of today, Wednesday, April 9th, there is a 90-day pause in effect. However, we are still covering an additional 10% that wasn't included before, and all of our carriers have raised their prices by at least 10% due to these changes affecting everyone.
We promise you we will only resort to a price increase as a final option when no alternative solutions are available. If a 25% tariff is imposed in the future, it will be unavoidable. However, we understand that once prices increase, it will be challenging to reduce them again, even if conditions improve. Therefore, we are approaching this situation with caution and have chosen not to make any public announcements, despite receiving frequent inquiries regarding comments due to price increase statements from other companies.
We want to assure you that we are fully aware of the situation and have plans in place. While we do not wish to instill fear, we believe we can navigate this situation together wisely.
Our next shipment is scheduled for two months from now, and we are hopeful that conditions will improve before then, allowing us to avoid a 25% tariff and the subsequent price increase.
Our hearts are heavy, knowing that other small businesses are likely facing similar challenges. We understand that this situation goes beyond just the cost of goods; it also involves supply chain challenges affecting every business. Our shipping suppliers, delivery carriers, and, most importantly, our customers—who are small business owners—are all impacted by these issues.
We will keep all of you in our thoughts and prayers.
We would like to end this lengthy blog with some positive news. We are excited to announce that we will soon be launching several amazing new products from HOP+ that we believe you will love, and that will help boost your sales. Additionally, we are working closely with our manufacturers on various promotions and exploring the possibility of introducing a new brand for our U.S. customers that we have been loving in Korea!
Thank you! We truly appreciate each one of you!