The quirky concept of “dog beds for humans” has proven a surprising hit for startup Plufl, but a steep tariff on Chinese imports is now forcing the company to consider a significant shift in its manufacturing strategy.
Co-founders Yuki Kinoshita and Noah Silverman, who envisioned their plush, snuggly, memory foam beds being made in China and retailing for $299 in the U.S., are now exploring domestic production.
Their innovative idea first gained national attention in 2022 when they pitched their prototype on Shark Tank. The appearance secured a joint investment of $200,000 from Mark Cuban and Lori Greiner for 20% of the company, which went on to make over 1 million in sales in 2023 through Amazon and their own website.
However, the company’s original production model was disrupted after U.S. President Donald Trump imposed a substantial 145% tariff on items imported from China in April. This significant levy prompted Kinoshita and Silverman to re-evaluate their supply chain.
In response, the entrepreneurs have begun investigating the feasibility of manufacturing their human-sized pet beds within the United States. While a domestic production shift might lead to a higher retail price, the co-founders believe a “made-in-the-USA” label could serve as an attractive selling point and alleviate concerns among U.S. retailers regarding the impact of ongoing China tariffs.
Silverman and Kinoshita had previously toured a factory in Las Vegas that could make the memory foam beds for $150 per unit compared to the $100 overall cost to make the beds in China. But that $150 manufacturing cost didn’t include the faux fur lining for the cover, which would still need to be imported from China—adding another $100 per unit.
They pitched a sub-$500 made-in-the-USA version to Costco, which it turned down, saying it couldn’t stock the product this year and might revisit the idea next year. Costco did not respond to a request for comment.
The duo behind Plufl are among tens of thousands of American small and midsize manufacturers facing the choice between paying steep tariffs on Chinese imports or taking on significantly higher domestic production costs. Even those willing to pay more to make goods in the U.S. are confronting another reality: retailers set prices for consumers and have been largely unwilling to budge in the face of tariffs.
On June 11, when Trump announced a deal to lower tariffs on Chinese goods to 55%, Kinoshita and Silverman decided to stay the course manufacturing their human dog beds in China and maintain the $299 retail price.
“We’re absorbing costs in a number of ways, such as finding shipping efficiencies by shrinking the box down more and also taking some hit on our margin,” Kinoshita said.
White House spokesperson Kush Desai said the Trump administration remains committed to reviving U.S. manufacturing, citing provisions in the Big, Beautiful Bill, which passed on Tuesday with a slim majority in the Senate, such as allowing businesses to fully expense equipment investments.
“These complementary policies will turbocharge growth and drive investment throughout the supply chain,” he said in an emailed statement.
Similarly, Aisha Chottani, another “Shark Tank” veteran, found that tariffs threaten her ability to sell her products in grocery stores.
Chottani, CEO-founder of Moment, makes her healthy, stress-reducing carbonated beverages in Wisconsin, but her packager, CanWorks imports pre-formed aluminum from China, and is thus subject to aluminum tariffs which raised the price of cans from by 20%.
