Tariffs have always influenced global trade, but today’s imported merch tariffs are creating unprecedented challenges for the promotional products industry. As highlighted in the PPB Magazine article “The Tariff Effect” by Tina Berres Filipski, the ongoing tariffs on goods imported from China are forcing suppliers, distributors, and clients to rethink how they plan, price, and communicate.
Filipski notes that these tariffs “are adding a new layer of complexity to doing business,” and she’s right. With such a large portion of promotional merchandise sourced from China, even small tariff adjustments can ripple through the entire supply chain.
The result is a fast‑moving landscape where pricing, timelines, and sourcing strategies must be more flexible than ever.
What Imported Merch Tariffs Mean for the Future
The imported merch tariffs are more than a temporary disruption—they’re accelerating long‑term changes in the promotional products industry.
We’re already seeing:
- More diversified global supply chains
- Increased interest in domestic manufacturing
- Better forecasting tools and communication systems
- A shift toward value‑driven product selection
While tariffs have introduced challenges, they’ve also sparked innovation and collaboration across the industry.
Why Imported Merch Tariffs Are Creating Industry-Wide Confusion
The imported merch tariffs have introduced uncertainty at nearly every stage of the promotional product lifecycle. The confusion stems from several overlapping factors:
Constantly Changing Tariff Lists
Product categories move on and off tariff lists with little warning. This makes forecasting difficult and forces suppliers to adjust pricing on the fly.
Unpredictable Cost Increases
Depending on the product category, tariffs can raise costs by single‑digit or double‑digit percentages. These increases often occur mid‑project, creating challenges for both distributors and clients.
Communication Bottlenecks
Suppliers must explain price changes to distributors, who then must explain them to clients—sometimes multiple times during a single order cycle.
Supply Chain Delays
As manufacturers shift production to avoid tariffs, temporary bottlenecks and longer lead times become unavoidable.
The imported merch tariffs have essentially created a moving target for everyone involved.
How Industry Leaders Are Responding To Imported Merch Tariffs
1. Prioritize Clear Communication
Suppliers and distributors are having more open conversations with clients about:
- Potential price fluctuations
- Extended lead times
- Alternative product options
- The importance of early planning
This transparency helps clients understand that the imported merch tariffs are an industry‑wide issue, not a vendor‑specific one.
2. Exploring Alternative Sourcing
To reduce dependency on China, companies are:
- Partnering with manufacturers in other countries
- Increasing domestic sourcing
- Stocking high‑demand items before tariff changes hit
While not always perfect, these strategies help minimize risk.
3. Creative, Cost‑Effective Solutions
Distributors are getting more creative by:
- Recommending lower‑tariff product categories
- Suggesting alternative materials
- Bundling items to maximize value
Creativity has become a competitive advantage in the tariff era.
4. Educating Clients
Many clients don’t fully understand how tariffs work or why they affect promotional products. Industry professionals are stepping in to explain:
- What tariffs are
- How they influence pricing
- Why flexibility is essential
This education empowers clients to make informed decisions.
In The Tariff Effect, several industry leaders—including our own Tom Goos, President of Image Source—share how they’re navigating this new reality. Their strategies reflect a broader shift toward transparency, agility, and proactive planning.
The Bottom Line on Tariffs
The imported merch tariffs have reshaped the promotional products landscape, but they’ve also pushed the industry to become more resilient, transparent, and strategic. As PPB Magazine highlights, suppliers and distributors are adapting, rethinking their sourcing, strengthening communication, and helping clients navigate uncertainty with confidence.
Read The Original Article
This article was published in PPB Magazine in July of 2019, to view the digital magazine version, click the link below.
