Haley Pavones High-Heeled Battle: Saving Her Dream Business from Trade War Tariffs

Haley Pavone, founder and CEO of Pashion Footwear, a Southern California-based online business that sells high heels that convert into flats, has seen her dreams for the company shattered by the trade war and tariff policies implemented by the Trump administration.

Pavone, who started Pashion Footwear as a 20-year-old college junior, had big plans for the company, expecting it to grow 150% this year and hire several employees. However, the trade war and tariff changes have made it nearly impossible for her to achieve those goals.

"We went from duty-free status to paying actually 190% on average overnight," Pavone told NBC News. The change in tariff rates has been sudden and dramatic, with the U.S. paying 36% to 75% on each product. The company has already paid more than $50,000 in tariffs to U.S. Customs and Border Protection since the May 2 change.

Pavone's company has grown to employ 12 and has patents in the United States, China and the European Union for its sole-support technology. Last year, Pashion made $9 million in gross revenue, up 88% from 2023. However, this year's growth projections have been drastically reduced due to the tariff troubles.

"This went from being a growth year to a year where we're really just trying to make ends meet and stay afloat," she said. To handle the increased costs, the company added a tariff tax averaging $15 to $25 per product when U.S. customers check out. Demand from U.S. consumers has since dropped around 30%.

Pavone shared her frustrations on TikTok, breaking down for her followers exactly how tariffs are affecting the business. She also testified before lawmakers in May, explaining how painful the changes have been for her and other small business owners.

"Every day that these trade policies continue, it means the death of more American dreams," she told lawmakers. "This is not a short-term pain. This is the destruction of livelihoods, both for entrepreneurs and those they employ."

Despite the challenges, Pavone remains hopeful that her testimony will help push for relief from the trade war and tariff policies.

This article was originally published on NBCNews.com with the accompanying image of Haley Pavone in her office in San Luis Obispo, Calif.