Operations Update: The Impact of Tariff Regulations

Dear Stylists,

Please see our update as of today, April 7, 2025, on the impact of the United States Government’s new tariff regulations.

Government Rules

Based on the new tariff rules, effective April 5, orders leaving the exporting country will be subject to a 10% tariff increase. Effective April 9, orders leaving Thailand will be subject to an additional 26% (for a total of 36%), and orders leaving Vietnam will be an additional 36% (for a total of 46%).

Shipment Expectation

Currently, garments from Thailand (Suits, Sportcoats, Trousers, and Outerwear) are grouped together and shipped to the Dallas warehouse and then individually shipped out from the Dallas warehouse to the Client.  Today, all Vietnam-made products are shipped directly to the Client (and do not go through the Dallas warehouse).

There are complicated permutations that can allow us to reduce duty/shipping costs.  We have calculated that the most efficient way is for the majority of shipments from Thailand (Suits, Sportcoats, Trousers, and Outerwear) to be sent directly to the Client (i.e., not through the Dallas warehouse).  In addition, for some orders, we will need to split shipments.  For instance, if one order is placed for multiple products, the Client may receive the multiple products in separate packages.

We will continue to review the best ways to improve the Client delivery experience as we navigate the complex rules.

What Are We Going To Do?

The company will absorb these new tariff costs for all orders already placed. This ensures no price changes for your Clients on orders already submitted.

Our business model differs from that of traditional retailers because we do not carry finished products in the U.S. Instead, our products are all made on demand. Traditional retailers typically have existing stock in U.S. warehouses or stores before new tariffs take effect. They will eventually raise prices, but not right away—only when newly shipped products (on or after April 9) arrive in the U.S. (which may take over a month by sea).

At this point, every new order we (J.Hilburn) receive from you will incur a substantial loss due to the extra duty imposed when it leaves the factory. We cannot sustain such losses, so we will be increasing prices on the majority of garments.

New Price Effective Date

The new prices will take effect for orders placed on or after Friday, April 11, at 12:01 a.m. Central Time.

We considered raising prices sooner to reduce losses, but we recognize many of you have already discussed potential orders with clients and need time to finalize. Therefore, we are allowing an additional three days for you to submit orders at the current (lower) prices. Any orders placed before Friday, April 11, 12:01 a.m. Central Time, will not be impacted by the new tariff-related price increase.

Pricing Structure Changes

While closely monitoring this situation, we are developing a new product pricing structure for suits, jackets, and outerwear, effective April 11th. We have reviewed our current pricing relative to key competitors and have analyzed our sales in detail. Our goal is to distribute the necessary price increases in a way that protects more price-sensitive garments (with lower percentage increases) while placing slightly higher increases on items where we remain comfortably within market value. We do not plan to impose a single flat percentage increase across all garments and tiers.

Please see the Frequently Asked Questions (FAQ) guide below to address common questions in more detail. We are also working closely with Stylist Support to ensure you receive the assistance you need during this challenging time.

By the evening of Wednesday, April 9, we will communicate the new pricing structure to you. The company will continue to absorb the increased tariff costs on all orders placed before Friday, April 11, at 12:01 a.m. Central Time.

We appreciate your understanding, patience, and support.

FAQs

Why are we increasing our prices at J.Hilburn?
  • The price increases directly result from the tariff increases imposed by the U.S. government. To maintain the company’s financial health and growth, we need to pass these costs on to the Client.

  • The majority of garments will be affected by these changes.
  • These changes will affect orders placed on or after Friday, April 11, at 12:01 a.m. Central Time.
  • We will announce the new pricing structure by the evening of April 9. The company will continue to absorb the increased tariff costs on all orders placed before Friday, April 11, at 12:01 a.m. Central Time.
  • No. The tariffs affect the company’s operating costs, but your commission percentage remains the same.
  • No. The PSVB is unaffected. In fact, higher prices mean each sale will contribute more to your total sales volume, helping you reach your bonus thresholds sooner.
  • No. We remain committed to delivering the same high-quality products, service, and experience to you and your Clients.
  • Keep it simple. These increases result from government-imposed tariffs that directly increase our import costs.
  • Consumers who purchase any imported products will likely see similar price increases in the next few months.
  • Yes, as long as the order is placed before Friday, April 11, at 12:01 a.m. Central Time. The company will absorb the new tariff costs on all orders submitted before that time.
  • We encourage you to contact them immediately to inform them of the upcoming tariff and price increases, as well as the deadline to submit orders before prices go up.
  • Again, please follow up promptly to advise them about the upcoming tariff increases, the price changes, and the deadline to place orders before the new prices take effect.
  • Same as above: reach out immediately and let them know about the deadline to avoid higher prices.
  • Explain that you do not control the company’s standard pricing. Reassure them you will continue to provide exceptional service and quality.
  • We are still in discussion on how to handle this.  We will provide an answer by April 11th.
  • Contact Stylist Support right away if orders have not been completed. We’ll do our best to help you place the remaining orders before the new prices take effect.
  • Please reach out to Stylist Support immediately if you have a committed program. We will see if we can suggest alternatives within the agreed-upon price or otherwise align with new pricing.
  • There are many unknowns, so we cannot make a definitive commitment at this time. We will reassess if or when tariffs are reduced, with the goal of providing outstanding service and value at any price point.
  • We do not anticipate shipping delays specifically related to these tariffs. You can stay informed about shipping dates through the Stylist App and Green Room. If you have any concerns, please let us know.

We appreciate your patience and understanding during this challenging time. If you have any additional questions, please contact Stylist Support.