‘Really tough’: RAQ Apparel founder shares tariff consequence
A young Aussie who has built her business from the ground up has revealed the harsh reality of tariffs that left her with no choice.
Small Business
Don't miss out on the headlines from Small Business. Followed categories will be added to My News.
Sophia Argropoulos has built her size-inclusive bikini brand from the ground up, and last week, she decided to shut down her US online store due to tariffs.
The 33-year-old founded her swimwear brand RAQ Apparel after struggling to find swimwear that fit perfectly and made her feel confident as someone with a bigger bust.
It’s been a real joy for the young business owner to watch Australian women discover her size-inclusive brand that offers over 60 sizes, and gain confidence from wearing swimwear that fits properly and flatters.
Ms Argropoulos said expanding her brand into the US was a dream come true because her ultimate goal is to reach as many women as possible.
“The goal has always been to share it with as many people as possible,” she told news.com.au.
MORE: Aussies to get $5k back amid US tariffs
Then President Donald Trump announced the tariffs, and her US business went from being responsible for 20 per cent of her brand’s entire revenue to being unprofitable overnight.
“As a small business to pivot it is really tough,” she said.
The RAQ Apparel founder was immediately in a difficult situation because her swimwear products are made in China.
MORE: $115bn wiped: Trump’s rich listers hefty fall
When the US announced a 10 per cent base import tariff and a 125 per cent tariff on Chinese goods, she knew she was in trouble.
“When tariffs went over 100 per cent on Chinese made goods, I was like ‘well we literally can’t make any money’,” Ms Argropoulos said.
The 33-year-old explained that if she were to send a $100 bikini to the US, the business would have to cover the tariff, which would cost $125. This would mean the business would lose $25 for every order.
The maths didn’t make sense, and Ms Argropoulos, who has a background in finance and economics, crunched the numbers quickly to work out that out.
“I’ve been following it quite closely, and with the weather getting colder, this is when we focus on the US,” she explained.
Ms Argropoulos said that as soon as she heard about the tariffs, she knew “straight away” that her profitable US website would now be impossible to run.
She made the call to close the US website only because there was no other logical choice.
“It was a no-brainer,” she explained.
‘We weren’t going to make any money, and we were going to be running at a loss. It was going to cost us money and I immediately made that choice.
“The more you leave the website open the more orders come through. That is going to add up and I didn’t want to wait and sit in that uncertainty.”
Not only would she lose $25 on every bikini she sold, but that $25 adds up, and her business could be losing thousands quickly.
The business owner is pragmatic and she wasn’t prepared to wait and watch as tariffs kept chopping and changing.
She took control of the situation, but that doesn’t make it any less upsetting.
Over the years, Ms Argropoulos has found a loyal US customer base, and every year, she loves shipping out her orders and hearing back from women.
She hears from customers who claim that her swimwear makes them feel more confident or share that this is the first bikini they’ve ever bought that fits them, or that now, for the first time ever, they actually feel confident going to the beach.
“I’m not able to share that with the world now,” she said.
“I also feel sad for Australian businesses that are finding it really hard to navigate these changes. It is really complicated.”
Originally published as ‘Really tough’: RAQ Apparel founder shares tariff consequence
‘Do today’: Text reveals wild request for $200
Tony Griffs paid more than $13,000 to this company to help his business, for little benefit. He finally cut ties — then came another request.
Trump tariffs to destroy iconic Aus tradition
The new tariffs being introduced by Donald Trump could lead to more of our meat being shipped offshore, pushing up local prices.