Planning for Tariffs

The promotional products industry has been closely monitoring the impact of import tariffs, a concern that dates back to the first Trump administration’s imposition of new duties on certain Chinese goods. Now, with the President-elect's second term confirmed, the prospect of broader tariffs has once again come to the forefront.

This likely means one thing: higher prices for your branded merchandise.

Businesses are already taking steps to address the challenges these new tariffs could bring, as highlighted in a recent New York Times article.

At OmniSource, we believe in staying ahead of the curve. That’s why we’re encouraging you to plan ahead now to avoid potential price increases and ensure your projects stay on track and within budget.



The Impact on Your Promotional Products

During the first Trump administration, tariffs were introduced on a range of Chinese goods, including various categories of promotional products. These tariffs, which ranged from 10% to 25%, effectively acted as an additional tax on imports.

The initial tariffs were strategically targeted at specific product categories and items where alternative sourcing options were available, meaning many products that were exclusively manufactured in China remained largely unaffected. Under the Biden administration, some of these tariffs were reduced, but the majority have stayed in place, indicating that while the tariffs created some disruption, their overall impact didn’t justify a full reversal.

In today’s interconnected global economy, most companies rely on international trade in some capacity. The promotional products industry remains highly vulnerable to market volatility and supply chain disruptions, as much of the production process depends on overseas manufacturing.



The Risk of Broader Tariffs

Former President Trump has proposed implementing a 10% or 20% tariff on all imports to the U.S., with a more drastic 60% or 100% tariff on goods coming from China. Such moves could lead to significant price increases across multiple industries, particularly for products, components, and materials sourced from China.

The National Retail Federation (NRF) warns that these tariffs could result in double-digit price hikes on raw materials, finished goods, shipping, and logistics.

These potential tariffs could have an immediate and profound economic impact. Since there is no legal requirement for advance notice or congressional approval, tariffs could be imposed suddenly, leaving businesses little time to adapt.

For businesses that rely on domestic suppliers and manufacturing, price hikes may not have an immediate effect. However, if the cost of foreign imports rises across the board, price increases are likely to affect nearly all consumer goods eventually.



Proactive Planning for 2025

OmniSource has taken steps to mitigate as much risk as possible, but unfortunately, the global situation remains unpredictable. Therefore, to ensure the best possible pricing and timely delivery, we recommend placing orders and arranging shipping as early as possible to minimize your risk of potential cost increases in January 2025. We will continue to carefully observe as more details are made public about the proposed tariffs and will continue to provide updates as necessary. 

Contact your OmniSource sales rep today to discuss your needs and secure your orders. Our team is ready to assist you with order placement, shipping arrangements, and any questions you may have.