Tariffs Are Here. What Does That Mean to YOU?

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how tariffs will affect promotional products

One of the most talked about topics in the last few months in the promotional products world has been Tariffs.  It’s been talked about because it can and WILL affect your marketing.

Our goal at Hasseman Marketing is to keep you up to date with what you need to know…so let’s dig into what this means for you and your marketing budget moving forward.

Previously, I wrote a blog post about how tariffs will affect your marketing. You can find that post Here. 

Just as a reminder, at my most recent visit to the PPAI Expo in January, tariffs were the talk of the show. When it comes to branded merchandise, a huge percentage of the items that are sold in the industry are imported from China. I mentioned in the previous blog post that the “pricing could change.”

And that price IS changing.

David Nicholson from PCNA (one of the largest suppliers in the Promo industry) released a statement on Wednesday, May 15, 2019. Currently, this is what we know.

  • Tariffs on the existing $200 Billion of Chinese imports will increase from 10% to 25% effective June 1st (for shipments made prior to May 10th).
  • The 25% tariff impacts the product categories originally included in the 10% tariff regulations that were enacted last September. The major categories relevant to our industry are: Bags and Stationery products, and portions of Drinkware, Technology and other Accessory categories.
  • The US Trade Representative announced Monday that the US has begun the formal process to expand the 25% tariff to all other imports from China (i.e. those currently not subject to tariffs).
  • This represents an additional $300+ billion of imports from China and would cover a large majority of product categories sold in our industry. The public hearing and comment period end June 24th – so the expanded range of tariff categories would not be imposed until after that date.

As I said, we at Hasseman Marketing want to be a great source of information for you and your team.  Whether it be a great idea for posting on social media, tips on video or the trends and news of the day, we want to be a resource.

So what does this mean to you?

It means, quite likely, the price of promotional merchandise that you purchase will be rising. Now is a good time to start thinking about the items you are using to promote your brand.  Here are a couple of questions to consider.

  1. Are you completely happy with the items you have been using?  If the answer is yes, then the price increase might be acceptable.
  2. Can we look at new options that could better fit into the budget moving forward?
  3. Are there domestically made products that might fit our needs?  We are going to be creating a list of some cool products that are made in the U.S. for you and your organization to consider.  Be on the look out soon!

If you have more questions, please feel free to reach out to us and we can discuss it! Make sure you never miss an update!  Sign up to become a VIP here.

How Tariffs Will Affect Your Marketing

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hasseman marketing tariffs

One of my goals with this blog is to provide value to those that read it…and make sure we, as a company, help to keep you informed.  Whether we show the latest promotional merchandise, or keep you up to date on trends, we want to help you in your marketing and branded merchandise efforts.

That’s why I want to talk about Tariff’s today.  Wait!  Don’t click away or fall asleep!  I will keep it brief!

As I mentioned in this recent blog, at the PPAI Expo (the largest promotional trade show in our industry) Tariffs were the talk of the show.  Everyone is talking about them, worrying about them, and asking questions about them.  Why?  Because when it comes to branded merchandise, a huge percentage of the items that are sold in the industry are imported from China.   This is such a concern that there are suppliers in our industry that have printed their entire catalog without putting in pricing!  Why?  Even those that have included pricing have included less information or large disclaimers saying that “pricing could change.”

So what does that mean to you?

It means, quite simply, if you use branded merchandise, your budget very likely could be affected.   This is not a threat or a political statement.  It’s just a fact.  If the tariffs continue, the price of your promotional material will go up.

So what can you do?

There are a couple of things I am recommending.

1.  Begin to adjust expectations.  As you move into 2019, just understand that the pricing for promotional items are in flux.  If there are items that you order regularly, you might want to stock up a bit or check in on pricing.

2.  Consider domestic options.  Though I do not expect to see American manufacturers of promotional items start popping up everywhere, I do expect an uptick for those that already are here.  When you are creating a marketing plan, make sure to include something made in North America. This is not the end of the world and the sky is not falling.  I just wanted to spend a few moments to put this trend on your radar.

If you have more questions, please feel free to reach out to us and we can discuss it!   Make sure you never miss an update!  Sign up to become a VIP here.