Astrohaus, the team behind Freewrite, is an American company. Like many American companies, and virtually all consumer electronic brands, our cost base is global. We work with contractors in Europe, in South America, and in Asia. We purchase components from a global supply chain and assemble our product in China, but make no mistake, we are an American company. The majority of our costs, including goods, services, and payroll, are from the United States. Most of our team lives in the Midwest. I founded this company in Detroit, Michigan, and am still here. I am proud to have built an American company that supports 10+ Americans and their families.
But now we are caught in a trade war that threatens our very existence. A war that was building up over time but has crescendoed to a point that no business owner could have prepared for. As I write this today, we have to pay an additional 145% of the cost of any product made in China as a tax to the U.S. Government.Yesterday it was 104%, up from 54%. In March it was 20% and in February it was 10%. Tomorrow?
Astrohaus is an importer because there is no consumer electronics industry in the U.S. China has emerged over the decades as the world's factory. At first, as a low-cost solution, but in 2025, they are undeniably the best in the world.
Now we are in a pickle because we have established relationships with our contract manufacturing partners that go back to when we started in 2014. Yes, some of the folks we work with today have been with us since the very beginning. They took a chance on us and helped us get off the ground. I have personally spent months on the ground in Hong Kong and China working closely with these folks, whom I now call friends.
Everyone, including our contract manufacturing partners, is helping us explore our options, but the truth is that it is incredibly difficult to move factories. It takes careful planning, huge expense, and much more time than we have.
Unfortunately, we can’t wait to let the trade war resolve itself, nor do we have the advantage big companies like Apple have with a diversified supply base in various countries. We must work with our existing supply base in China, and that means adjusting prices to cover some of our new costs. That's assuming a trade deal gets done, because 100%+ tariffs are simply untenable long term.
On Monday, April 14, we will be raising prices. Not because we want to, but because we have to.Thank you for standing by us over the years. We aren’t going anywhere.
Write on,
Adam
Freewrite Founder & CEO
