Etsy Leans In On Local To Assuage Tariff Fears

As new tariffs raise concerns about supply chains and rising prices, Etsy is leaning into its network of local sellers to boost user and investor sentiment.

CEO Josh Silverman addressed the issue in a company blog post, explaining that Etsy is helping buyers “shop with confidence” and empowering sellers to manage their businesses “with as little disruption as possible” during turbulent times.

“We know that the recent shifts in trade policies and tariffs between the US and many countries around the world have raised questions about global supply chains, pricing and the general availability of goods,” Silverman said. “As these changes unfold, we remain committed to delivering a seamless experience.”

Silverman says Etsy "uniquely positioned" to meet shoppers in this moment, with millions of special items from sellers in their country - giving examples of more than 60 million items that ship domestically in the US, as well as over 800,000 sellers in the UK, 300,000 in Canada, 300,000 in Germany, and 100,000 in France.

To make shopping domestic even easier, Etsy is now surfacing new ways for buyers to discover businesses in their countries across the website and app with curated shopping pages, local seller spotlights, and more.

Etsy is also continuing to keep an eye on the global trade and tariff situation, providing sellers with tools, guidance and education for understanding tariffs and mitigating the potential impact to their businesses and elevating seller voices to advocate for public policies that reflect the unique needs of small businesses.

The reassuring message isn't meant just for buyers and sellers - Silverman is also looking to assuage investor fears that Etsy will be negatively impacted by the tariff updates, compounding concerns about the company's already lackluster growth and financial performance in recent quarterly earnings reports.

In their latest proxy statement, released this week ahead of the annual shareholder meeting to be held on June 17, both Silverman and Etsy Board Chair, Fred Wilson, acknowledged 2024's disappointing results.

Silverman said,"At Etsy, we hold ourselves to the highest standards as the market leader for special. While we made progress in many areas, our overall 2024 performance did not meet those high standards. We understand your disappointment, and we share it."

"That said, I firmly believe that the steps we took in 2024 were pivotal to strengthening Etsy’s foundation—key to our long-term success—and, over time, will further cement Etsy’s place as the home for creativity in commerce—and, ultimately, return Etsy to delivering strong value to our stockholders."

Wilson echoed that acknowledgement but also made it clear that the Board still stands behind Silverman's leadership of the company.

"While 2024 top line results were disappointing, Etsy's efficient operating model delivered very healthy financial performance. The Board of Directors has high conviction in the company's future, hence our stewardship over a large buyback program which reduced the outstanding share count by over 12 million shares over the course of 2024, and the authorization of a new $1 billion share repurchase program."

"We remain confident in the leadership of our Chief Executive Officer, Josh Silverman, and his refreshed leadership team, which started 2025 with a strong plan to invest in areas which we believe will increase buyer engagement, drive more sales, and return the Etsy marketplace to GMS growth over time."

While tariffs and larger macroeconomic concerns will likely be used by many companies to explain lagging performance in the coming quarters, the problems at Etsy go back much further, cut much deeper and will need more than a few dedicated landing pages focused on local shopping to meet that goal of returning to GMS growth over time.

How are tariffs and trade war tensions impacting your Etsy business? Let us know in the comments below!