In the cutthroat world of coffee gadgetry, Fellow, a San Francisco-based startup, is facing a caffeinated crisis that’s more bitter than their darkest roast. The company’s CEO Jake Miller is watching his meticulously planned espresso machine launch get steamrolled by escalating trade tensions between the U.S. and China.

When Tariffs Attack

Import taxes have skyrocketed 70-fold, transforming a $10 import cost into a wallet-crushing $25. For Fellow, this means warehouses full of products stuck in limbo and production lines grinding to a halt. “Since these tariffs, we have not brought a single item into the U.S. We’re just sitting on our hands,” Miller lamented.

Silicon Valley’s Latest Startup Struggle

The impact goes beyond just one company. Fellow’s situation represents a microcosm of how geopolitical drama can torpedo innovative tech businesses. With plans to diversify manufacturing in Mexico, Vietnam, and Indonesia, Miller is playing a high-stakes game of global chess.

The Human Cost

Smaller competitors are already throwing in the towel, offering to sell their businesses for pennies on the dollar. Miller knows he’s fortunate: “Thank God I’m 13 years into this. Thank God we’ve got a strong brand, balance sheet, and a team to weather it”. But not everyone will be so lucky in this economic thunderstorm.