Where the tariffs land

At Julianna Rae in Burlington, Massachusetts, Bill Keefe and Juli Lee design silk robes, pajamas and nightgowns that are manufactured in China. These photographs were made on February 27, 2025, for The New York Times. In the paper’s March 1 report, a new 10 percent tariff on Chinese imports had left the company weighing difficult choices about shipments, suppliers and prices.

The company had brought in a large amount of inventory before the tariffs took effect, in preparation for Christmas and Valentine’s Day demand. Lee was considering delaying later shipments in case the tariff policy changed. But waiting carried risks: customers could be left without products, while suppliers in China would have to hold inventory longer. Lee had worked with those suppliers for more than a decade. “The uncertainty is really hard on both sides,” she told The Times.

Higher prices were another possibility. Keefe told The Times that a popular silk pajama set priced at $300 might rise by $15. Moving production was no easy alternative. Although silk manufacturing facilities existed in other countries, Keefe said China offered the strongest combination of machinery, expertise, quality and price. The company’s dependence on China involved specialized manufacturing capabilities as well as the cost of making its garments.

Julianna Rae’s choices reflected a wider problem in the paper’s reporting from nearly 100 companies importing from China. American businesses were shouldering the tariff costs, and many expected to pass at least part of the expense on to customers. Domestic factories could be difficult to find, while rebuilding a supply chain elsewhere required time and money. For businesses considering a move, the possibility of tariffs on another country made that investment harder to plan.

Julianna Rae is one of those medium-sized businesses that has a niche and knows its customers.