Tariff Concept graphic

Editor's Note: This article was written for Promo Impressions. For more content on the promotional products industry and decoration, subscribe to the biweekly newsletter at PromoImpressions.com. 

Tariffs have been the talk of many industries across the globe since President Donald Trump started imposing them on various products and countries in February. No matter what side of the aisle you sit on, one question remains: How will tariffs impact promo?

With the latest tariff news, Promo Impressions wanted to get a gauge on how promotional products suppliers are handling the situation and its impact on business.   

From the 25% flat-rate tariff on steel and aluminum products to rates as high as 145% on some imports from China and the 10% baseline rate for most other countries, tariff updates have been changing frequently in the last several weeks. 

Championing Transparency

“We’re definitely feeling the impact, and while we’re doing everything we can to absorb some of the increases through tighter operational efficiencies and long-term planning, reality is there’s only so much we can offset,” Michelle Chen, sales director for Fossa Apparel, shares with Promo Impressions. “We’re trying to avoid blanket price hikes by reviewing categories case by case. We want to be transparent and fair, especially with our key distributor partners.”

As tariff news changes from day to day, Fossa Apparel isn’t alone in pushing for transparency. This was one of the major themes from ASI’s most recent tariff webinar featuring ASI President and CEO Tim Andrews, three suppliers, and one distributor.

“I think it's all about education and communication,” Heather Smartt, global head of Goldstar, shared in the webinar. “Offering good, better, best solutions and those different types of price SKUs is imperative, and then in terms of communication. We're going to continue to be open about the changes that we're making. Our communication has been super helpful to our clients who want transparency, especially when it comes to the tariffs and potential delays. I just ask clients to keep an eye on their inboxes. We are sending out updates, educational tools, and videos to keep everyone informed.”

In addition to keeping communication open and transparent, suppliers are figuring out ways to minimize cost increases, maintain margins, and mitigate customer impacts.

What Does the 90-Day Reciprocal Tariff Pause Mean?

  • 90-Day Pause on Reciprocal Tariffs: President Trump’s higher tariffs on 57 countries (like the EU, Japan, and South Korea) are paused for 90 days, reverting to a 10% rate during this period.
  • 10% Baseline Tariffs Stay in Place: A 10% import tariff on goods from most other countries (including Brazil, Australia, Britain, and Colombia) remains active for the 90-day window.
  • China Tariffs Increased to 125%: President Trump raised tariffs on Chinese imports to 125%. This combined with a 20% fentanyl tariff, could mean some imports see a levy of 145%.
  • No Change for Canada and Mexico: Canada and Mexico are exempt from the new tariffs — if goods comply with USMCA rules of origin. Non-compliant goods still face a 25% tariff due to fentanyl-related measures.

* This summary was created with support from ChatGPT, content published by Reuters and the New York Post. 

That includes several actions like negotiating prices with manufacturers and exploring alternate supply chain structures. Jose Gomez, president and CEO of Edwards Garment, says his company has been able to negotiate and hold prices on certain products.

“We are negotiating with our vendors and working with our distributors to keep them informed,” Gomez stated in the webinar. “We want to push for the lowest possible price increase, but obviously there will be some price increases in some categories within our catalog.”

For Chen, she says production differentiation is key during this time. “We’re leaning into innovation, making sure we’re offering unique, high-quality items that can’t just be price-shopped,” she says. “We’re also trying to be smarter with inventory planning and streamlining logistics to cut back on unnecessary costs. Relationships still matter too —people stick with you when they know you’re adding real value.”

While price adjustments and education are part of most supplier strategies, some are also reevaluating their global sourcing strategies.

Shifting Supply Chains

Just as differentiation in product is important, it’s also important when sourcing. Some suppliers are exploring shifting production to countries where tariffs may be lower. While President Trump did put a 90-day pause on reciprocal tariffs, higher levies beyond the 10% baseline remain a possibility. And for those working with vendors in China, the up to 145% tariff hike has them considering alternatives.

Chris Anderson, CEO of HPG Brands tells Promo Impressions: “HPG continues to be focused on the matters that are within our immediate control, while seeking to mitigate the real time, customer-facing impacts of the day’s tariff news — which includes such tactics as item substitutions from within our deep stock of USA and Canadian inventory, or rerouting order fulfilment from one HPG facility to another — as we produce and ship from USA, Canada, and Mexico.”

For SanMar, ceasing production in China is the goal, according to an April 10 letter penned to customers from President and CEO Jeremy Lott. The company entered 2025 with less than 7% of its products sourced from China. In addition to a supply chain shift, it plans to implement a "modest" price increase on all private label and retail brands on June 1 to offset the current 10% base tariff – except for its Volunteer Knitwear brand, which is made in Tennessee.

“After the 90-day pause, we’ll decide if we need a second price increase,” Lott states. “I realize this contradicts what I said before, but circumstances have changed. We are hopeful that countries can come to an agreement with the U.S. and additional price increases are not needed.”

At Vantage Apparel, a diversified supply chain has been a reality since 2018, when it began expanding into other countries like India, Pakistan, and Bangladesh. This move has helped enhance its inventory pipeline, manage costs, and maintain prices for customers, states CEO Rob Watson in a statement emailed to customers.

While the 90-day pause on reciprocal tariffs is in effect, Watson says it leaves things in a state of uncertainty. How long will the pause last? What will follow?

“Despite the cost-saving measures we’ve implemented over the past several years, they may still fall short in offsetting ongoing volatility,” Watson states. “We expect to learn more in the days ahead, but I wanted to give you a heads-up on what we know now and how it could potentially impact pricing moving forward.”

Effective June 1, prices for Vantagel Apparel products and decoration will increase and customers can expect details of that starting on May 1. “This gives you time to have pricing conversations with customers before they take effect, or to place orders prior to the price increase,” he adds. Redwood Classics Apparel pricing will not see an increase, as it's made in Canada and qualifies under the USMCA agreement as exempt from tariffs.

Blockchain-backed logistics abstract concept vector illustration.

“We recognize that this is an evolving situation, and trade negotiations remain fluid,” Watson continues. “Vantage Apparel is actively monitoring these developments and working closely with our factory partners to assess the ongoing impact and look for ways to ease the burden to our partners like you. We will continue to keep you informed as changes unfold.”

For Goldstar, Smartt says the company had also already shifted some product out of China to countries like India and Vietnam, but it doesn’t plan to make any additional supply chain changes at this time.

“I think we're going to stay the course. We put a lot of effort into building up our supply chain in those countries,” Smartt stated in the ASI webinar. “And again, because things are so new, we don't know how long this will be in effect, or what the long term play is, but I think when we invested so much in these countries that it wouldn't make sense to just move out overnight, not that you could even, to lower tariff impact countries.  It's going to take a long time, and it's all about playing a long game and making sure that we have an effective supply chain and be able to get product to North America.”

Weathering the Storm

As Smart states, moving production overnight isn’t realistic, and that’s especially true for U.S. production. Jeff Schrimmer, owner of Brighter Promotions, says any kind of mass promotional product production in the U.S. isn’t feasible due to lack of infrastructure, skilled labor, and economies of scale.

While the promotional products industry weathers the storm and waits to see what’s to come, suppliers agree that transparency is key – whether it’s about sourcing, price increases, or product availability. Being transparent keeps conversations open and allows distributors and customers to stay informed during a time of uncertainty.

“Customers are asking more questions about origin, tariffs, and future pricing,” Chen tells Promo Impressions. “We’re spending more time educating and collaborating. Some are shifting toward lower quantities or more budget-friendly styles, but we’re also seeing a move toward better quality and long-term wearables, which plays to our strength and our sustainability belief.”

By staying nimble and transparent, suppliers and promotional products decorators can best serve their customers. Even as the 90-day pause leaves the future of tariffs uncertain, suppliers are proving that adaptability and transparency are powerful tools in weathering the storm.