The company was already dealing with pretty thin profit margins before the tariffs, which—at 145%—make doing business in the US far too expensive at the moment.
Realistically you have to pay to have a batch of your product manufactured, when your margin shrinks the break even goes up.
A lot of companies are seeing it effectively mean to continue ordering a product they have to sell much higher volume, but at higher prices which is where it’s infeasible.
They don’t want to order a bunch of products they don’t expect to sell and to take a loss, even if they increase the price.
Realistically you have to pay to have a batch of your product manufactured, when your margin shrinks the break even goes up.
A lot of companies are seeing it effectively mean to continue ordering a product they have to sell much higher volume, but at higher prices which is where it’s infeasible.
They don’t want to order a bunch of products they don’t expect to sell and to take a loss, even if they increase the price.