Brands Briefing: Tariff ruling leaves brands in the lurch as bills pile up

To avoid locking in inflated duties, Bergman considered paying demurrage fees — costs that can range from $200 to over $5,000 per day — to stall his containers at port. For a few short hours, it seemed worth it to wait and see how the tariff situation unfolded, including whether U.S. Customs and Border Protection would issue new guidance on import duties.

But within 24 hours, an appeals court stayed that ruling, reinstating the duties while the case proceeds through the legal system — likely all the way up to the Supreme Court. When it became clear that the trade landscape wasn’t going to change immediately, Bergman scrapped his plan. Now, he and other brand owners are back at square one. 

“The biggest issue is that we have no idea what tariff rate we’re going to get charged,” Bergman said. “Do I get charged the original rate? The illegal one? The new one they might invent next week?”

The trade environment remains volatile. On Monday, China accused the U.S. of “severely undermining” the 90-day trade truce struck last month, calling President Trump’s allegations of bad faith “baseless.” Trump, for his part, claimed Beijing wasn’t holding up its end of the deal. Meanwhile duties on foreign steel and aluminum are set to double to 50% on Wednesday, adding new pressure to importers.

Tariffs on Bergman’s incoming shipments from China could push his total expenses into the low- to mid-six-figure range. Jool Baby has already shelled out six figures to date due to sky-high duties on its predominantly Chinese-manufactured goods.

Bergman isn’t alone. 

Chuck Gregorich, the owner of Net Health Shops, an outdoor goods brand, said he’s already out close to $1 million due to tariffs. If the ruling is upheld, importers may be eligible to claim refunds — a process already handled routinely by CBP. But brands could be left waiting a while. Gregorich applied for a $40,000 refund about 18 months ago and still hasn’t received it. For small companies with limited cash flow, that kind of delay could be financially crippling.

Tariffs are already weighing on brands’ earnings. The unpredictability has even impacted product decisions. Matthew Hassett, CEO of smart home company Loftie, said his company had just begun shipping again after holding off for months due to 145% tariffs. “The reduction to 60% gave us enough relief to send a container,” he said. But the brand still had to raise prices to help absorb the costs of tariffs. Loftie’s May sales were down 80% compared to the five months prior.

“There’s ambiguity every day,” said Kevin Sides, president of fulfillment firm ShipMonk. “Things are very fluid — one day the duties are this, the next they’re that.”

To help brands manage the uncertainty, ShipMonk opened its own bonded warehouse facility in Texas. Bonded warehouses allow companies to defer duties and tariffs for up to five years, providing cash flow relief. The service is relatively new — ShipMonk launched the bonded warehouse side of its business in January — but demand has been “really strong,” Sides said. Currently, it makes up about 10% of ShipMonk’s total business.

For importers already grappling with tariffs as high as 145%, the momentary ruling sparked a burst of hope. For some, like Luke Barkley Young, CEO of home goods brand Outlines, it spurred immediate action. “I called, emailed, texted, WhatsApped all my suppliers in China yesterday and begged them to ship everything ASAP,” Young said. “They told me every customer is asking them for this.”

Most companies are pressing ahead with long-term pivots. “A lot of brands are sticking with plans to diversify their supply chains,” ShipMonk’s Sides said. “Even if the tariffs go away, they don’t trust they’ll stay gone.”

Until the courts offer more clarity, Gregorich said he’s proceeding cautiously. His company has already pulled much of its manufacturing out of China, but he’s ordering only the bare minimum from other countries like Vietnam and India.

Bergman said his team is still reviewing where to manufacture key items and whether it makes sense to continue reshoring or reroute shipments. Still, frustration remains. 

“Companies can’t make decisions,” Bergman said. “You make a decision today, you think it’s rational, but then something else changes.“ –Allison Smith

3 Questions With: Oura Chief Marketing Officer Doug Sweeny

Last week, wearable health tech company Oura launched its latest multichannel campaign, “Give Us The Finger,” that leans into longevity as a wellness trend. The campaign includes media buys on linear TV, podcasts and paid social, plus global out-of-home ads in places like Los Angeles, New York, Miami and London. Modern Retail spoke with Oura’s CMO, Doug Sweeny, ahead of the campaign launch. 

What was the genesis of the “Give Us the Finger” tagline?
“One thing that is very unique to our product is where it sits on the body. There is this thing where people talk about Oura and they ask, ‘Is that an Oura, how do you like it?’ Or the member would just say, ‘I want to tell you about this,’ and they’ll spark up a conversation. That just happens to be a very unique part of our product that you don’t find in a lot of other products. The line we’re using is ‘Give us the finger’ — it’s playful, fun, a little edgy. But it reflects that natural exchange between members. There’s a head nod, a sense of community. And we think that’s really powerful.”

How did you incorporate themes of wellness and longevity in the campaign? 
“In wellness and sports and even among our competitors in the wearable space, the convention is usually to feature very young people doing lots of sweaty and athletic things. It’s tried and true to do that or even use professional athletes. We’ve intentionally cast a diverse range of individuals in their 40s through their late 70s. And the concept is that these people have a cheat code. They’re living their absolute best lives, and they’re all Oura wearers. It’s very fun and playful, but it has a very specific message and, in a lot of ways, we think it repositions aging. It’s not about going into an old folks home; it’s about really living your life, and it’s about vitality and that age has no limits.”

How has Oura’s focus evolved as wellness culture has shifted in recent years?
“Historically, up until the last couple of years, it was all about just activity. It was all about just pushing yourself. I think the genesis of Oura was very early in this [wellness trend]. Some of this comes from the birth of the company being in Finland, a country of balance and wellness, with a different approach to health. We’re not a company or product that was born in the U.S., and you see that reflected in the mission and vision. I think we’ve just expanded on the heritage of the company, but it really started in a way that was about balance and letting your body lead the way.” –Melissa Daniels

Job openings to watch

Bubble, the buzzy, Gen Z-focused skin-care brand, is focused on building its reach via marketing channels and influencer relationships. In recent weeks, it posted openings for an influencer marketing manager, a director of social media, a vp of brand, and a senior creative and experiential producer. Job descriptions on LinkedIn cite goals like “drive genuine engagement,” “develop a social commerce strategy” and “expand reach across global markets.” The postings come at a pivotal point of growth for Bubble, which expanded into Target in January 2025 and cited a 250% rise in revenue in September 2024. Its founder, Shai Eisenman, previously told Modern Retail that the company has grown an avid fan base thanks to TikTok and brand ambassadors. –Julia Waldow 

By the numbers: Nonalcoholic beer

Unlike most of the stagnant zero-proof beverage category, NA beer is growing rapidly. According to projections from IWSR, which were reported on by CNBC, nonalcoholic beer is projected to overtake ale as the second-largest beer category worldwide this year. Most prominently, the category is being fueled by celeb-led entrants like Tom Holland’s Bero brand and Dwyane Wade, who co-founded Bud Zero with AB InBev. Here are some more numbers to know about the category’s growth:

• 8%: Nonalcoholic beer’s projected annual growth through 2029, according to the latest IWSR data. It’s especially noteworthy compared to the 2% decline ale beer is expected to see in the same period.
• 19%: Athletic Brewing’s NA beer market share in the U.S., per NielsenIQ. The startup’s growth is currently outpacing big players like Heineken 0.0 and Budweiser Zero.
• 2%: The volume that NA beer accounts for among overall global beer sales, meaning it’s still a relatively small segment. –Gabriela Barkho

What we’re reading

• Williams-Sonoma has scooped up Dormify’s IP, nearly six months after Dormify filed for bankruptcy. Williams-Sonoma said in a press release that it plans to relaunch Dormify in 2026.
• What E.l.f’s Rhode acquisition means for the future of celebrity beauty.
• Why Hoka’s business is slowing while On’s keeps on growing.

What we’ve covered

• Why candle brand Siblings dropped its Meta spend by 56% and plans to eventually shut off its spend on the channel completely.
• Hands-free shoe startup Kizik has a new CEO: Gareth Hosford, who spent over a decade at Nike before helping launch fitness apparel startup Omorpho.
• A breakdown of the changes that Babbel, BattlBox and ButcherBox are making to retain customers at a time when more shoppers are cutting back on subscriptions to save money.