Tariff tutorial: This Canadian company nailed communications with U.S. customers

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By Marcy Medina | for The SKUpe

Like many retailers abroad, Understance, a Canada-based bra company, has been grappling with the effects of Trump’s tariffs whiplash. With half its customers based in the U.S., the company had to act fast when import duties were first announced — and again when the de minimis exemption (which allowed orders valued at $800 or less to be duty-free) was eliminated. Director Jiayi Lyu shares how the e-commerce brand, which has physical stores in Canada, has maintained its customer-first approach during the chaos.

How has U.S. trade policy affected your operations and U.S. sales?

The removal of de minimis in February was announced about two days before it was implemented. We did not have enough time to revise our workflow to comply with the new regulations, so we paused U.S. shipping. We sent an email to our subscribers informing them of the changes; we worked with our customs broker to coordinate tariff collection and remittance and made changes on our website to ensure compliance. The removal of de minimis was implemented on Feb. 2 and reversed on Feb. 5. As soon as the reversal was announced, we resumed U.S. shipping. As a response to the instability in the U.S. market, we shifted our operations away from it. We paused ad spend in the country and diverted retail store openings to the domestic market. Up until February, about half of our customers were based in the U.S. In the following three months, under 40% of our customers were based in the U.S.

What is your communication strategy amid the constant changes? 

Our top priority is being transparent with our customers. We're closely monitoring the situation and keeping our community informed about potential changes that may affect them as the regulations evolve. Our commitment, now and always, is to provide high-quality undergarments at an affordable price.

How have customers responded?

Our customers have been very supportive and understanding throughout this process. We’ve had the occasional customer who conflated our tariff compliance with taking a political stance, but most understand that tariffs are a government regulation that businesses have very little say in. One of our customers has organized a protest at the White House to advocate for small businesses. In times like this, we are surprised by how much our customers would do for us—it’s just bras after all—but we are grateful for the reminder that support is bigger than a garment.

What in particular has worked well for Understance, and what would you recommend for other retailers facing similar issues?

We've found that breaking down the complexities of the tariffs in a clear and concise manner has helped our customers understand the situation. Specifically, we've used social media and email newsletters to keep our community informed, providing regular updates and explanations of how the tariffs are impacting the price points of our products. Our recommendation is to always prioritize transparency and open communication with customers. A few tips include:

Be proactive. Don't wait for customers to ask questions—anticipate their concerns and address them upfront.

Use clear language. Avoid using jargon or technical terms that might confuse your customers. Instead, use simple, straightforward language to explain the situation.

Choose the right channels. Use the channels your customers are most active on to communicate with them. For us, social media and email newsletters have been effective.

Empathy. Show that you're committed to finding solutions that work for them.

Thanks for reading.

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The SKUpe is curated and written  by Marcy Medina and edited by Bianca Prieto