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NYC-based baby brand "hoping for a miracle" to avoid raising prices amid tariff whiplash

Despite the recent pause on Chinese tariffs, small online businesses say the uncertainty around future rates is making it almost impossible to plan ahead.

CBS News New York's Natalie Duddridge spoke with the co-founder of a Brooklyn-based baby brand struggling to keep prices stable.

"We don't even know what to expect"

Liz Turrigiano co-founded Esembly in 2009 with a simple idea – to create sustainable cloth diapers. Today, it's become a full line of eco-friendly baby products sold exclusively online.

But Turrigiano says the recent tariff whiplash has been extremely challenging.

"We have a spreadsheet for every possible scenario. If it's 10%, if it's 39%, if it's 145%," she said.

Even with the temporary China-United States truce lowering tariffs on Chinese products to 30% for 90 days, she has no idea what happens next.

"As a company we're absorbing as much as we can. I mean, the tariffs are changing daily. Like, we don't even know what to expect," she said.

"We don't have that kind of cash sitting around"

Esembly manufactures some of its products in the U.S.

"Skin care is made in Wyoming, and all of our laundry products are made in Massachusetts," Turrigiano said.

But they depend on global supply chains. The company's packaging, made from 100% recycled plastic, comes from China.

"The best source of anything made of recycled plastic is China," Turrigiano said. "So that tariff is going to impact the cost and ultimately the price that we have to charge of even the products that are made here."

Their diaper line, made with organic cotton, is sourced from Pakistan. Turrigiano said they had already paid for an order that was ready to ship when Pakistan was hit with a 39% tariff in April.

"On top of that, that we would have to pay when the order arrives in the U.S., and we don't have that kind of cash sitting around," she said.

"There's so much uncertainty"

Esembly says, like many U.S.-born companies, they tried to go completely U.S.-made, but the cost just wasn't sustainable.

"The cost to make them in the U.S. was higher than that. So we're looking at, like, $30, $40 diapers," Turrigiano said.

Turrigiano says while a pause might bring relief, it still leaves them in limbo and uncertain about the future.

"We have personal money invested. We have 15 years of our time," she said.

She added, "There's so much uncertainty, which is really hard to run a company around that. But we're telling our customers that yes, the likelihood that we will be raising prices in the coming months is very high. We're hoping for some miracle to make it so we don't have to."

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