Forget Winter, the Tariff is Coming and it is Far More Ominous!
Usually, it is a hot new product making the buzz in the promotional products industry but right now the buzz is all about the proposed China tariff. The proposed tariff will have a widespread impact on various industries, including a significant impact on the promotional products industry. At Connect the Dots Promotions, we love to share our latest projects or interesting products with our clients and industry peers, but we also believe it is important to have a conversation about how important this proposed tariff is and examine just how wide-reaching the impact will be.
Trump Administration Proposed 25% Tariff Will Impact Everyone
If you have not yet heard the news, the Trump administration proposed 25% tariff on products imported from China. Make no mistake, this is a HUGE tariff. Not only is this tariff threatening businesses but, unfortunately, it is threatening widespread impact on our customers because it will lead to an increase in prices.
USA Today explains what is at stake with the proposed China tariff increase, “The trade war with China could cause prices to rise on everything from toys to clothing, but it also could lead to ‘widespread store closures,’ according to a report by UBS. The investment bank’s analysis said tariffs on Chinese imports could put $40 billion of sales and 12,000 stores at risk…’We think potential 25% tariffs on Chinese imports could accelerate pressure on these company’s profit margins to the point where major store closures become a real possibility.” Earlier this month, the Trump administration increased U.S. tariffs on $200 billion in Chinese imports from 10% to 25%. The president has also threatened to add a 25% tariff on almost all the remaining $325 billion in goods shipped in from China… ‘We’re going to continue to do everything we can to keep prices low,’ said Brett Biggs, Walmart’s chief financial officer and executive vice president, during a call with reporters Thursday. ‘However, increased tariffs will lead to increased prices we believe for our customers.’”
Proposed China Tariff Will Have a Big Impact on All Businesses & Their Clients
The proposed increase will certainly impact large retailers like Walmart, but it will be an even larger strain on small businesses. While we still have not seen exactly how this proposed China tariff will play out exactly, if it does go into effect as planned, it will most likely lead to increased prices.
Because of this, and because we love our clients so much and don’t want to see their marketing impacted by this, we highly encourage our customers to consider looking ahead at the next 6 months – 1 year and consider what they have planned for marketing and promotional products. If you have not yet, start planning your marketing calendar out and considering if now is a good time to order for fall, back-to-school, holidays, end-of-year, or other occasions for which you might want promotional products. By ordering sooner rather than later (before a new tariff is implemented), you will take advantage of lower prices that will no longer be around if the tariff goes into effect.
Plan Ahead to Avoid Paying Higher Prices If Higher Tariff is Enacted
At Connect the Dots Promotions, you can always count on our dedication to you, our client. We have been well aware of the proposed tariff for some time and are anticipating the potential increase by researching American made products and other sources to keep costs low but, unfortunately, if the tariff does go into place, it will likely mean increased pricing. If you are interested in discussing your marketing plan, alternative marketing strategies, or investing in promotional products now to avoid
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