This week, Treasury Secretary Scott Bessent, who serves under President Donald Trump, revealed a temporary trade arrangement between the United States and China. As part of the 90-day agreement, designed to facilitate ongoing discussions, tariffs on Chinese imports to the U.S. will decrease from 145% to 30%. In exchange, China will cut its tariffs on American products from 125% to 10%.

This temporary relief is positively received by sectors that heavily depend on Chinese manufacturing. One such sector is the adult toy industry—especially vibrators—most of which are manufactured in China. As previously reported by Mashable, the ongoing trade conflict had posed a threat to significantly increase prices for these items.

In reaction to the prior tariff increases, sex toy company Dame implemented a “Trump tariff surcharge” for its customers earlier this year. The surcharge commenced at $5 when tariffs reached 54% and subsequently increased to $15 when the rate escalated to 145%. With the introduction of the new trade deal, Dame has now eliminated the surcharge.

“We made our point,” said Alexandra Fine, co-founder and CEO of Dame, in an interview with Mashable. “The tariffs aren’t as high now, and the surcharge resulted in a negative and confusing experience for customers.” Fine also shared the update on her LinkedIn profile.

Initially, the surcharge appeared during checkout, reflecting the unanticipated costs incurred by Dame while importing products from China. Fine stated that she wanted customers to feel the same shock she experienced when facing elevated expenses. She compared the situation to informing employees they had to work on a holiday like Columbus Day—now frequently referred to as Indigenous Peoples’ Day—only to realize she was unintentionally cast as the “Columbus” in this context.

Despite eliminating the surcharge, Dame chose to maintain the product price at $15 higher (without charging customers the extra amount) to ensure transparency regarding the impact of tariffs on the business. However, this strategy also caused confusion.

Now, with tariffs lowered to 30%, Dame has opted to absorb the additional expenses instead of passing them on to consumers. “It doesn’t make sense to revert prices entirely because there’s still a 30% tariff,” Fine stated. “That being said, we will be lowering our prices pretty much back to normal. That’s really exciting.”

When asked if Dame would possibly increase prices again in the future, Fine replied, “Mostly no… We’re going to absorb most of it.” She highlighted the company’s dedication to remaining competitive and providing quality products at affordable prices.

In anticipation of the steep 145% tariffs, Dame undertook proactive measures, such as boosting inventory in China and establishing a warehouse there. Now that tariffs have eased, the company is no longer dividing orders between the U.S. and China but intends to keep the Chinese warehouse running.

While customers generally appreciated Dame’s openness about the surcharge, it did not lead to increased sales. In fact, Fine pointed out that the checkout completion rate fell by 33% on the first day the surcharge was introduced compared to the prior week.

The fluctuating tariffs also complicated Dame’s retail relationships. Adjusting prices becomes more challenging when collaborating with third-party distributors than when selling directly through the company’s website.

Despite the recent alleviation, Fine remains vigilant. “I am certainly relieved from a cash perspective,” she stated. “But from an operational or broader viewpoint, am I happy? No. This is still not ideal.” She intends to persist in advocating for more stable and transparent trade policies.