- Canadian-Australian business pays 24-26% tariffs due to manufacturing in Japan/India
- 80% of revenue comes from US customers
- Historic customs paperwork errors suspected in tariff assignment
- Island’s 2,000 residents face outsized trade policy impacts
When Jesse Schiller and Rachel Evans launched their plastic-free hair accessory brand Kooshoo 15 years ago, they never imagined becoming collateral damage in international trade wars. The couple’s sustainable business now faces 29% US tariffs – triple Australia’s standard rate – due to what experts call a customs documentation oversight.
Four out of every five Kooshoo sales originate in the United States, making these tariffs particularly devastating. Industry analysts note small Pacific businesses often bear disproportionate impacts from trade policy errors. “This situation reveals how automated tariff systems penalize remote entrepreneurs,” explains Melbourne trade lawyer Amanda Chen.
Regional case studies show similar challenges. In 2022, Vanuatu’s organic coconut oil producers faced 18% EU tariffs meant for Indonesian palm oil conglomerates. Like Kooshoo, resolution required months of bureaucratic appeals.
Three critical insights emerge from this crisis:
- Sustainable material choices don’t exempt businesses from trade disputes
- Digital customs systems frequently misclassify island territories
- Micro-businesses need contingency plans for policy shocks
Schiller confirms Kooshoo will absorb 60% of tariff costs temporarily while negotiating with suppliers. “Our plant-based packaging gives pricing flexibility that petroleum plastics don’t,” Evans notes, highlighting sustainable advantages.
Norfolk Island’s unique history complicates matters. As a former British penal colony turned self-governing Australian territory, its trade status remains ambiguous in automated systems. Local officials are now lobbying Canberra for clearer customs identifiers.
Despite challenges, Kooshoo’s story offers hope. Their commitment to zero-waste manufacturing aligns with growing consumer demand – US eco-friendly beauty sales grew 14% last quarter. By emphasizing ethical sourcing, the company aims to turn trade barriers into marketing opportunities.
