Trump’s Tariffs Hit Local Denver Dog Businesses

For a city so obsessed with its dogs, it might seem like Denver’s pet supply companies are thriving at first glance. However, due to President Donald Trump’s tariffs on international goods, some local businesses are under pressure.

Luke Johnson, owner of Luke & Company off Broadway, has been selling pet supplies to people for nine years. After Trump’s tariffs were announced, Johnson posted a sign on his company’s door, warning that prices would have to increase as a result.

“There’s going to be a lot of indirect effects on our business [from the tariffs],” Johnson said. “What people don’t realize is that a lot of the stuff we sell, even if it’s produced in North America, comes from all over the world.”

Specifically, Johnson said that many of the dog foods sold by pet suppliers will be hit significantly by Trump’s tariffs because ingredients are sourced internationally.

“Most of your duck and your rabbit generally come from France,” Johnson said. “You’ve got lamb that almost entirely comes from New Zealand. You’ve got beef that often comes from South America. And you’ve got fish that come from all over the world.”

Since the tariffs will be affecting popular products sold at Luke & Company, Johnson has opted to be transparent about the effects on his business and potential price increases as a sign of respect towards his customer base.

“These last two years, I think people’s pocketbooks have gotten a lot tighter and people are more price conscious,” Johnson said. “We want to be respectful of that, and we want to make sure that they know that we’re here to give them recommendations if something becomes out of their budget or price range. And most of all, we just wanted them to know that we’re not trying to gouge them. Some of these things are just out of our control.”

Despite the tariffs and price increases being a touchy subject, Johnson says that his customers have had a mostly positive and understanding response to his transparency.

“Customers are generally pretty understanding,” Johnson said. “We’re not doing this for any other reason except to just be transparent. And some folks are okay with it, and some folks don’t say anything. Some folks make a lot of political comments about it at the register, and it just kind of runs the gamut. Our goal is not to be political. We don’t care who you are [or] what you are, but we just want you to know we’re not trying to gouge you.”

While Johnson understands that the tariffs are intended to help American companies, it’s undeniably making things harder for his business.

“I certainly would love to see more American manufacturing and jobs in the US,” Johnson said. “I think that’s a wonderful thing. I’m also a businessman, and there’s different factors that affect why there are and are not jobs here in the US. Labor is one of them, and that’s a big one, and it’s going to be a hard one to overcome.”

In contrast to Luke & Company’s business model, built on importing products, American Dog, owned by Tina and Hayley Clark-Johnson, is a Denver-based pet supply company that has sold exclusively American-made products since its inception in 2014. For a company that only sells products made in the USA, the tariffs may seem like a slam-dunk success at first sight.

“We were initially excited about the demand for American-made products, and not only pet products, as we are also a soft-sewn manufacturing company and can make any number of fabric-based products,” Tina said. “So we had high hopes for both our brand and our manufacturing business, but it feels like we are on a bit of a roller coaster.”

Clark-Johnson says that the tariff’s impact on their business is more nuanced, as the roller coaster that was initially designed to help their company has thrown them for a loop.

“[The tariffs are] good and bad,” Tina said. “In theory, the tariffs would be positive for us, as it would elicit companies to want to make products here at home and encourage people to buy American-made products, and we have seen an uptick in American Dog sales. However, the volatility of this administration has created a ripple effect, which we have yet to see how that plays out for us.”

Specifically, Tina says Trump’s 90-day pause on tariffs being put on international products has squashed much of the positive momentum that American Dog gained when they were first announced.

“When the tariffs were at 145%, companies that were making products in China were desperately seeking new manufacturers,” Tina said. “We offer co-branding and private label design and production, so we were locking down some great production opportunities.  However, since the 90-day hold on tariffs has been declared, most of these companies we were negotiating production with have decided that they no longer need our help. These companies now possess the ability to find alternative manufacturers in other countries.” 

Clark-Johnson says that the tariffs that were designed to help businesses like their own will likely hurt their profitability.

“Even though American Dog is manufactured in the US, the tariffs could still affect the bottom line,” Tina said. “Our raw goods costs could potentially go up, and that would cause us to potentially have to raise prices.”

Going forward, American Dog shares that it will continue putting a large emphasis in its marketing on the fact that its products are American-made, just like it always has. However, Tina says that they plan to make their local manufacturing an even greater selling point from now on.

“American Dog has always emphasized its US manufacturing in its marketing materials,  pushing our quality and support for jobs in the US,” Tina said. “This hasn’t changed, but we are putting that fact in a greater spotlight.”

When it’s all said and done, American Dog and the Clark-Johnsons will continue to brace for the unforeseen impact that the tariffs will have on their business, both positive and negative.

“For American Dog, the tariffs are likely a double-edged sword,” Tina said. “They can be helpful in terms of marketing and highlighting the value of US-made goods. But it sounds like we are in a holding pattern for now because of the current stay.”

To both Johnson and the Clark-Johnsons, Trump’s tariffs are an obstacle, but not one that can’t be overcome.

“I do [think we can overcome the tariffs],” Johnson said. “The only saving grace is that all of us retailers, whether you’re Amazon, Target, Petco or an independent shop like us, we all have the same tariff headwinds.”

At the end of the day, Johnson thinks his business can weather the storm but knows that there could be some tough times ahead.

“I think we are going to be okay,” Johnson said. “It’s just going to be turbulent for the next six to 18 months.”