FT News Briefing How a small US business navigated Trump’s tariffs
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Apr 1, 2026 
Rebecca Melsky, Princess Awesome co-founder, and Eva St. Clair, the quirky kidswear entrepreneur behind the brand, unpack the chaos Trump’s tariffs brought to a small clothing business. They talk customer messaging, lawsuits, inventory strain and tough pricing calls. Chris Giles, FT economics commentator, explores the ECB’s choices as Europe wrestles with an energy-driven inflation jolt.
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Why The ECB Faces A No Win Energy Shock
- Chris Giles says an energy shock leaves the ECB choosing between tolerating temporary inflation and proving it still controls prices.
- Lagarde outlined three cases; Chris says Europe is currently in scenario two, implying a couple of quarter-point rate rises.
Princess Awesome Survived By Constantly Reworking Supply Chains
- After Trump's tariff announcement, Princess Awesome rushed production into the three-month pause and rebuilt sourcing across multiple countries.
- Eva St. Clair said the year felt like battleship because switching tariffs forced duplicate factory development and wasted money.
They Chose Customer Transparency Over Immediate Price Hikes
- Rebecca Melsky and Eva St. Clair told customers tariffs were paid by their company, not foreign exporters, then chose not to raise prices.
- They cut salaries and production instead, leaving Princess Awesome at its lowest inventory level in 10 years.