UPDATE April 2, 2025 4:55 PM Eastern 

President Donald Trump on April 2 announced a new round of tariffs that stand to impact the promotional products industry.

In a speech at the White House Rose Garden, the president said he’d be instituting country-specific import levies on certain nations based on tariffs and trade barriers they have in place against the United States. He also said he’d be implementing a baseline tariff rate of 10% on all imports.

According to a chart the president displayed during his speech, reciprocal tariff rates for key nations from which the promotional products industry and other industries import would be: China, 34%; Vietnam, 46%; India, 26%; Taiwan, 32%; Thailand, 36%; Malaysia, 24%; European Union 20%; Japan, 24%; and Bangladesh, 37%. 

Trump said the tariffs would help usher in new era of prosperity for the United States, bolstering domestic manufacturing, enhancing national security and making “America wealthy again.” He said today marked America’s “declaration of economic independence.”

However, critics say the tariffs are going to spike inflation and disrupt the economy. For instance, promo products industry leaders have said these and other tariffs the president has implemented will affect everything from product pricing, sourcing practices, inventory and cash flow to end-client willingness to invest in merch and the types and quantities of items they buy. Promo imports the vast majority of products sold in the United States, particularly for nations in Asia, China especially. Vietnam, Bangladesh, and India, among others, have increasingly hosted apparel production for promo and the clothing industry more broadly in recent years, meaning the new tariffs there could drive up garment pricing.

“All businesses in North America are taking a second look at headcount, capex investment and marketing spend plans – due to tariffs, threats of tariffs and rumors of tariffs to come, which is impacting spend across all categories of promotional products,” said Chris Anderson, CEO of Counselor Top 40 supplier HPG (asi/61966).

Tim Andrews, president and CEO of ASI, called the tariffs a “gut punch to the promotional products industry. We’re talking about real businesses, real jobs, and real economic impact – not just numbers on a spreadsheet. Our $26.6 billion industry relies heavily on global trade, with 90-95% of hard goods coming from China alone. Higher tariffs mean higher costs, tighter margins, and tough choices for distributors and suppliers who are already navigating economic uncertainty.”

Andrews said the tariffs announced April 2 are much more significant than expected and will have a far-reaching impact on promo and the entire economy. “Tariffs on many countries where suppliers have moved since the original Trump tariffs -- Vietnam, India and Thailand for instance -- will be especially difficult,” Andrews said. “Beyond promo, what is basically a national sales tax of 30% and more will lead to inflation and a marketplace climate that isn’t conducive to business.”

Despite the challenges, Andrews said promo isn’t going anywhere. “The smartest businesses will adapt – negotiating harder, finding efficiencies and proving to clients that branded merchandise delivers ROI that outperforms other marketing channels,” he said. “ASI is here to help, whether it’s through expert panels at our trade shows or breaking news coverage at asicentral.com/tariffs. The road ahead won’t be easy, but our industry has been through challenges before, and we’ll get through this one too.”

The below story has industry reaction from earlier in the day on April 2, prior to the tariff announcement. It adds further context on how levies already in play and market anxiety over tariffs have been affecting promo.

The world is watching the White House this Wednesday.

President Donald Trump is expected to announce his latest round of import tariffs – a development that stands to affect the promotional products industry regarding everything from product pricing, sourcing practices, inventory and cash flow to end-client willingness to invest in merch and the types and quantities of items they buy.

Press reports and information from Trump’s administration on just what the tariffs will be has varied, changed quickly and sometimes conflicted. As of this early Wednesday writing, the particulars of the plan remained a mystery to the public.

Still, given indications from Trump, the April 2 announcement is likely to be the president’s broadest, most sweeping tariff action yet.

For weeks, the administration and mainstream media were framing the tariffs as “reciprocal” – a type of tit-for-tat approach in which the president appeared keen to place import tariffs on countries based on import levies and what he deems to be related trade barriers each nation places on the United States.

ASI Fort Worth 2025: Promo Pros Talk Strategies To Prepare for Tariff Impacts https://t.co/0LxuuXz6OP

— Chris Ruvo (@ChrisR_ASI) April 2, 2025

There’ve been indications that the administration could focus especially on what U.S. Treasury Secretary Scott Bessent has called the “Dirty 15” – the 15% of countries that account for the bulk of trade with the U.S. and impose tariffs or other rules that put U.S. firms at an alleged trading disadvantage. These include major U.S. trading partners like Brazil, Canada, China, Mexico, India, Vietnam and the European Union.

However, of late, some reports have indicated that Trump was considering a blanket tariff rate – 20% on all imported goods from everywhere. “You’d start with all countries,” Trump told reporters on Sunday. “So, let’s see what happens. There are many countries … Who told you 10 or 15 countries? You didn’t hear it from me.”

Banking and financial experts have offered additional insights into what may be coming. "Our base case, and our understanding of the market consensus, is for tariffs averaging around 10% announced on roughly 50% of U.S. goods imports," economists at Citi told clients.

Trump is expected to make the tariff announcement today at 4 p.m. in the White House Rose Garden. He’s called April 2 “Liberation Day” for U.S. trade policy, as he has stated he believes tariffs are a powerful means for ultimately strengthening the United States economy and security, bolstering domestic manufacturing and reducing reliance on foreign nations. 

Clarity, Please

Business leaders in the promotional products industry are hoping, at least, for clarity today on what the tariffs will be, followed by stability in approach from the White House – something that could allow them to better plan and adapt to the new trade reality the levies may usher in.

“The ongoing scenario is so fluid with so many peaks and valleys,” Yuhling Lu, co-owner of Counselor Top 40 supplier Ariel Premium Supply (asi/36730) and a member of Counselor’s Power 50 list of promo’s most influential people, told ASI Media. “Tariffs have become a daily conversation. Information changes constantly and we are spending considerable time looking at how so many different scenarios will impact our business.”

So far in 2025, Trump has placed additional tariffs of 20% on goods imported from China – levies that built on the tariffs he set on hundreds of billions of dollars in China-made products during his first term as president (2016-2020).

“Tariffs have become a daily conversation. Information changes constantly and we are spending considerable time looking at how so many different scenarios will impact our business.” Yuhling Lu, Ariel Premium Supply (asi/36730)

Trump has also removed duty exemptions and increased tariff rates on imported steel and aluminum, while hitting Canadian and Mexican-made goods with import tariffs of 25% on products not covered by the United States-Mexico-Canada Agreement (USMCA). It’s possible the USMCA exclusion could even be abolished April 2. The administration is also moving forward with tariffs on products such as foreign cars and imports of important automotive parts.

Complicating things further: The White House is considering charging China-based shipping companies and shipping companies that use China-made ships potentially millions of dollars every time one of their vessels enters a U.S. port – something that could exponentially increase importing/exporting fees, damage the economy and cause supply chain disruption on levels experienced during the COVID-19 crisis, critics from across industries have warned.

The Office of the United States Trade Representative held public hearings last week on the fee proposals in which it heard widespread opposition to the plan. No announcement on the proposed port fees is expected April 2.

The Industry Impact

Tariffs are essentially taxes on imports. U.S. importers, not foreign companies or governments, pay them. The promotional products industry imports most of the products it sells in the United States.

As such, tariff actions to date, particularly on China and steel and aluminum, are compelling suppliers to raise the prices they charge distributors for products – with price jumps expected to become much more widespread through the industry in the second and third quarters. If more tariffs were placed on countries around the globe, that could inhibit the strategy of importing from countries either not affected or less burdened by tariffs, something suppliers (and distributors who import directly) use to mitigate levy costs when bringing foreign-made products stateside.

“We are closely evaluating product manufacturing locations to identify sourcing opportunities in regions that may be less affected by tariffs,” Chris McKee, chief revenue officer at Counselor Top 40 distributor Geiger (asi/202900), told ASI Media. “However, if the administration implements a broad, across-the-board tariff policy, the impact of these efforts may be limited.”

Uncertainty in the marketplace over tariffs and their potential to hurt the economy is already negatively affecting promo products' sales, some suppliers and distributors said. For instance, some are seeing average order value declines.

“All businesses in North America are taking a second look at headcount, capex investment and marketing spend plans – due to  tariffs, threats of tariffs and rumors of tariffs to come, which is impacting spend across all categories of promotional products,” said Counselor Power 50 member Chris Anderson, CEO of Counselor Top 40 supplier HPG (asi/61966). “For instance, even for products that are 100% manufactured in the USA, we are seeing average order values decline in the first quarter of 2025 – even as order counts remain strong.”

Counselor Power 50 member Craig Nadel said tariffs and anxiety over what’s to come with the levies has muddied the marketplace waters and stifled business. It's also likely nixed certain orders, he said.

“All businesses in North America are taking a second look at headcount, capex investment and marketing spend plans – due to tariffs, threats of tariffs and rumors of tariffs to come, which is impacting spend across all categories of promotional products.”Chris Anderson, HPG (asi/61966)

“Costs are higher, and I suspect we’ve lost some orders to fruit baskets, gift cards and non-industry products,” said Nadel, CEO/president of Counselor Top 40 distributor Nadel (asi/279600). “The on again and off again nature of tariffs has also made business more complicated. We have to go to the clients and say ‘The price is X, now it is Y, now it is X again.’  The clients are pretty understanding and of course this is not unique to our industry but it is a hassle.”

Trevor Gnesin, a Counselor Power 50 member and CEO of Counselor Top 40 supplier Logomark (asi/67866), said already-in-play tariffs and those poised to come will affect supplier cash flow and possibly inventory levels. Suppliers will, he noted, have to find significant additional financing to hold the same levels of stock.

“If a company is holding $25 million inventory, to hold the same amount of units they normally carry, they will need to find an additional $5 million to $7 million to finance that inventory in the short term,” Gnesin told ASI Media. He added that under current marketplace conditions, some banks are reducing lending, making it more difficult to find the necessary additional cash.

“If companies do find the cash, it will be at a higher cost,” Gnesin said. “Most companies have had huge increases in costs this year and with sales flat or down, it’s hard to generate profits to finance the increase. This is worse than tariff increases, because if suppliers wait too long to adjust their prices, they will find themselves in a dire situation in six months, not being able to maintain inventory levels, which will eventually lead to the same stock gap situation we saw during 2020/21 with COVID.”

Tariffs were a hot topic at the ASI Show Fort Worth, held March 29 to March 31, with multiple sessions and around-the-floor discussions focused on them. Check out the sidebar below for some tips with dealing with tariffs from an ASI Fort Worth Education session that featured Andrews and fellow industry leaders: Power 50 member Lori Bauer, CEO of Counselor Top 40 distributor iPROMOTEu (asi/232119), and Power 50 member Dan Jellinek, chief revenue officer of Counselor Top 40 distributor The Magnet Group (asi/68507).

3 Ways You Can Stay Prepared for Tariff Impacts

READ MORE

1. Shorten Your Quote Windows (USAID), which has provided billions in funding to colleges over the years for research and the like. U.S. District Judge Theodore Chuang this week ruled that the Department of Government Efficiency (DOGE) likely violated the constitution when it clamped down on USAID, though the Trump administration has promised to appeal. Chuang blocked DOGE and its head Elon Musk from additional USAID cuts, among other orders. However, Chuang’s ruling doesn’t reinstate previously axed USAID work, including humanitarian and development assistance programs. Furthermore, despite Chuang’s ruling on DOGE, Trump administration officials now in charge of USAID wouldn’t necessarily be running afoul of the constitution if they initiated more cuts in the organization, according to the Associated Press.

2. Focus on Relationships

The promotional products industry is built on relationships, Jellinek said, and when times are tough and confusing, those relationships become more crucial than ever.

Andrews recommended spending some quality time with customers and prospects – time that’s not focused on pitching products but instead on understanding clients’ business goals and biggest challenges.

“Don’t try to solve the problem by pulling 15 things out of a bag,” Andrews said. “It’s listening. It’s taking notes and being really thoughtful. And then, going back in a few days with some ideas that are actionable.”

*Pulled $400 million in federal grants and contracts from Columbia University. The administration warned that other universities could experience similar penalties as part of a stated crackdown on alleged anti-Semitism on campuses.

3. Stay Informed – And Keep Your Clients in the Know

Bauer said she’s focused heavily on making sure iPROMOTEu affiliates are educated on the latest news as it relates to tariffs – and isn’t shying away from having those affiliates share information with end-buyers. In fact, it’s the opposite.

“That’s really the key – to get in front of it,” Bauer said. “That’s where we’re seeing a lot of our affiliates have success, not hiding behind the topic, but rather addressing where we are.”

You can find ASI Media’s comprehensive coverage of how tariffs are affecting the promo industry at asicentral.com/tariffs.