Grace Loves Lace forced to hike prices for US customers amid turmoil cause by Trump tariffs

A renowned Gold Coast bridal business has been forced to deliver tough news to some of its customers amid global turmoil rocking markets.

US President Donald Trump’s trade war has claimed another Gold Coast victim, with Burleigh bridal business Grace Loves Lace now facing a ‘worst case scenario’.

The homegrown label and largest independent bridal brand in the world posted a shock notice on social media that all orders shipped to US customers, a ‘hugely’ important market in terms of revenue, would be subject to additional duties due to tariffs imposed on Australia and other countries by President Trump.

It comes after Trump this week authorised his commerce department and trade representative to immediately institute a 100 per cent tariff on all movies made in other countries, described by Mayor Tom Tate as a “kick in the guts” to our local screen industry.

Grace Loves Lace CEO Wade Ziems said the company, which ships to more than 80 countries and includes celebrity fans like Margot Robbie, Audrina Partridge and Chloe Fisher, had been forced to increase prices by 10 per cent for American customers, but the tariffs actually amounted to a 25 per cent increase for Grace Loves Lace.

“We offer a broad range of products, some Australian made, some offshore made,” said Mr Ziems.

“The tariff is determined based on where it was made, for how much and the RRP (recommended retail price), on our current product mix we have determined the likely impact is a 25 per cent increase in delivered cost.

“This position has changed weekly, so to combat uncertainty for our US customers we have changed our model to include all payable duties and taxes in our RRP. The downside is we have been forced to pass on part of the duties and taxes by way of a 10 per cent price increase.

“The US market is already price sensitive so to be forced to increase prices for that customer is a worst case scenario, but we don’t know of any business that could afford to insulate the US customer entirely from the tariffs for a sustained period of time.”

Burleigh-based bridal business Grace Loves Lace is the biggest direct to consumer wedding dress brand in the world. Model Zasha wearing Grace Loves Lace on Burleigh Beach. Picture: Luke Marsden.

Mr Ziems said the price increase would be immediately removed if tariffs were reversed, but that the goalposts were consistently moving and causing confusion.

He said Grace Loves Lace became aware in April that their goods would be subject to tariffs, and he was concerned but optimistic about the impact.

“The goalposts since (April) have been moved consistently, the best sources of information have been our global freight partners. It was a surprise given that apparel and textiles were already being heavily taxed on entry to the US,” he said.

“As a brand committed to integrity and service, we immediately moved to ensure we protected our customers’ experience as much as possible … we agreed that this was our company’s problem, not our customers. (But) we had obviously hoped that the tariffs would be rolled back before 6 May.

“The US is a hugely important market for Grace Loves Lace, making up a significant portion of our global revenue. However, we’ve built a loyal and passionate community of brides across the world – and we’ve weathered many storms before.

“Like many industries, bridal went through an incredible period of upheaval during Covid, but we also saw innovation, community, and brand loyalty grow stronger. What we’re experiencing now is another chapter of that resilience.”

Grace Loves Lace has built a successful global business. Picture: Luke Marsden.

Mr Ziems said he had not been contacted by any government representatives or agencies to provide aid or advice during this crisis, and the company was attempting to find a long-term solution.

He said despite the trade war, Australia would always be home for the brand although the company could continue to expand its operations internationally.

“We have not heard from any government agency and we believe there’s an opportunity here to open up a broader conversation about how to support Australian-born fashion and lifestyle brands who are making their mark internationally,” he said.

“We’re exploring several avenues, from fulfilment efficiencies to adjusting product flow, to find smart, long-term solutions that protect both our customer value and our business health.

“Being a proudly independent brand gives us the flexibility to act fast, and our global footprint is an asset in these moments.

“(But) our Australian roots are at the heart of everything we do – from our design philosophy to our craftsmanship. We’re incredibly proud of our heritage. While we may continue to expand our operational capabilities globally to better serve key markets, Australia will always be home.”

Originally published as Grace Loves Lace forced to hike prices for US customers amid turmoil cause by Trump tariffs