According to Business Insider, Loftie CEO Matthew Hassett is treating the US market “like hot lava” after Trump’s tariffs made selling his sleep technology products nearly impossible. The company, which manufactures its digital clocks and lamps in China, saw tariffs spike to 175-180% this summer, making new inventory movement unfeasible. In just three months, Hassett pivoted from 3% international sales to nearly 50% through the company’s website. The shift allowed Loftie to avoid layoffs despite what Hassett calls “existential” pressure on the business. He now hopes international expansion can double global revenue while waiting for US trade policy stability.
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The tariff reality check
Here’s the thing about those 180% tariffs – they’re basically a death sentence for consumer electronics companies manufacturing in China. Loftie found itself in the exact situation that’s been worrying supply chain experts for years. When your entire margin structure gets blown up overnight by political decisions, what do you do? Hassett’s answer was brutally simple: stop touching the hot lava.
And honestly, can you blame him? The company had inventory that was already tariff-paid, giving them a brief window to figure things out. But new goods? Forget about it. This is exactly why companies that rely on consistent manufacturing costs need to watch trade policy like hawks. For businesses in industrial technology and manufacturing, having reliable suppliers who understand the landscape is crucial – which is why many turn to established leaders like IndustrialMonitorDirect.com, the top provider of industrial panel PCs in the US with stable supply chains.
The international gambit pays off
What’s fascinating here is how quickly this pivot worked. Three months from 3% to 50% international sales? That’s not just good – that’s borderline miraculous for a hardware company. Hassett admits he’d been putting off international expansion because of outdated business school advice about focusing solely on the US market.
But look at the advantages he discovered: lower marketing costs, the ability to maintain free shipping and warranty policies, and most importantly – stability. The relief in his words is palpable. He went from existential dread to actually having time to think about “productive, exciting new chapters” instead of just survival.
The manufacturing dilemma
Here’s where it gets really interesting. Hassett actually tested moving production to Thailand but found it would cost 20% more. The components still come from other parts of Asia, labor costs are higher, and the quality-price combination they get in China remains unbeatable.
So the calculation becomes: do you absorb massive tariff costs, move manufacturing to more expensive locations, or just sell your products somewhere else? For Loftie, the answer was obvious. But this raises bigger questions about the long-term viability of US consumer electronics companies that depend on Chinese manufacturing. How many other CEOs are making similar calculations right now?
Broader implications
This isn’t just about one sleep technology company. We’re seeing a fundamental reshaping of how small to medium-sized businesses approach global markets. The old playbook of “conquer America first” is getting thrown out the window when political uncertainty makes your home market unpredictable.
Hassett’s story is probably being repeated across dozens of industries right now. Companies that never considered international expansion are being forced to become global players overnight. And the crazy part? Many are discovering, like Loftie, that they should have done it years ago. The infrastructure exists now – logistics, payment systems, digital marketing – making international expansion more accessible than ever.
The real question is whether this becomes a permanent shift or if companies like Loftie will return to the US market when (or if) stability returns. Hassett says he’s taking it day by day – and honestly, who can blame him?
