Updated January, 2025
As I’m sure you know, President Trump plans to impose significant tariffs on U.S. imports from China, Canada, and Mexico. Although we don’t know for sure, our swag manufacturers and importers anticipate these tariffs will impact the costs of products from those countries and have been looking for ways to minimize the impact.
This is not the first time our industry has faced political and economic situations affecting the supply chain, and as far as tariffs, a lot was done during Trump’s first administration to handle the cost increases.
Overall, the swag industry is optimistic. We foresee President Donald Trump’s tariffs may be more strategic and measured than promised, causing uncertainty but allowing businesses to adjust and move forward. That said, there are certain things we can do to prepare for the effect of tariffs on our marketing budgets.
Will Swag and Branded Apparel Prices Go Up?
Chances are, if you use branded merchandise, your costs will go up. But not across the board, at least not as a direct result of the tariffs in the short term.
In terms of products, we can expect to see price increases in electronic items, most bags, and some drinkware, as well as lanyards, desk and office products, among the most popular items.
Our supplier partners have been working on ways to mitigate their cost increase. Some will not be affected because their production factories are in other countries and are not subject to tariffs. Others only buy a small percentage of imported raw materials to use in their domestic factories, therefore their costs increase will be minimal. Others are 100% made in the USA.
However, there are factories that are direct importers from China, and they will be impacted.
How Can I Prepare?
There is no doubt there are adjustments to be made in our approach. This is what we’re recommending.
1. Review your marketing initiatives for the year.
This is a good time to put all your upcoming events and promotions on the table and take a look at the branded merchandise you want to incorporate and what you have at hand, and even be prepared to adjust your budget to set realistic branded merchandise expectations.
2. Combine branded merchandise purchases
Consider using the same giveaway for as many events as possible. This can work very well for your lower-priced giveaways, but you might be able to use the same item for both your staff’s internal use and some of your events. By making a larger purchase, you will lower the unit cost and increase your budget.
3. Order larger quantities
If there are branded products you use internally and order regularly, check on pricing to order a larger quantity. It might be worth the savings to stock up a bit.
4. Consider domestic options.
I must admit that we at KSM didn’t usually look for domestic options all the time, even though we work regularly with some reputable domestic factories. There are, in fact, quite a few American manufacturers and there will probably be more popping up over time. Going forward, however, we will take a closer look at their products every time to see what we can include in the mix for our clients’ consideration.
One Last Thought On Tariffs
Although this is a big issue for the promotional products industry, we think this should not be a big issue for you and your company in the long term. Even though price increases are likely unavoidable, in the end, it comes down to meeting your budget.
We are holding planning meetings with our clients so we can find creative ways to incorporate swag into their activities and events and stay within budget.
I hope this information was valuable. We at KSM Promotions want to be the best resource for all things promotional products, not only to talk about trends and ideas but also to keep you informed when situations like these arise.
If you have any questions or want to review your upcoming promotions, we are always here to help, please get in touch with us at your convenience.