The situation around Trump administration tariffs is constantly shifting, with new announcements or implementation dates coming, seemingly, daily and weekly. It’s an issue that’s having significant implications, in a myriad of ways, on the promo industry – especially as it relates to prices on goods imported from overseas and effects on general consumer spending on promo.

At ASI Show Fort Worth this weekend, distributors had the chance to hear from industry experts on the topic – including insights from ASI President & CEO Tim Andrews on the overarching economic impacts of tariffs, and insights from Lori Bauer, CEO of Counselor Top 40 supplier iPROMOTEu (asi/232119), and Dan Jellinek, CRO of Counselor Top 40 distributor The Magnet Group (asi/68507), on how top suppliers and distributors are safeguarding their businesses.

Industry-Wide Impacts

On Education Day, Andrews joined Sara Lavenduski, ASI’s executive director of client education and content, for a Q&A on the potential ramifications of tariffs on the promo industry – and what distributors should be focused on when pitching promo during a tougher economy.

Reminding clients of promo’s higher ROI compared to other advertising mediums can be critical for selling during more challenging economic times, said ASI President & CEO Tim Andrews during his Q&A with ASI Media’s Sara Lavenduski on Education Day.

“It looks as if prices may see a 6%-8% increase from the supplier to the distributor on a 25% tariff,” Andrews estimated, based on conversations he’s had with several suppliers and distributors over the last few months.

However, he noted, few products made in China are only made by one manufacturer – which means there’s room for price negotiations. Because tariffs are paid based on the value of goods imported, those negotiations then, if successful, would also lower the tariff amount upon entry to the United States.

It’s also important to consider that tariffs can be beneficial for domestic manufacturers, as tariffs can keep out some goods imported from other countries. But with that decreased competition comes concerns for Andrews about innovation and product improvement.

“Long-term, that means less competition, less development, less innovation, less money spent on building better products,” he said.

Promo companies importing product, though, aren’t the only ones that feel the direct economic impacts of tariffs.

When prices are higher, consumers buy less in general, Andrews said – and it’s crucial to make sure that end-buyers know how strong of a return on investment promo can have, so it’s not something that gets cut from a company’s budget.

“If someone has a promotional product that they’ve gotten because of the relationship they have with a business, they know the name of the brand, and that brand is with them every single day,” Andrews said. “And that’s a much more cost-effective ROI than a billboard that nobody remembers.”

Supplier & Distributor Perspectives

Bauer and Jellinek – both members of Counselor’s Power 50 list of promo’s most influential people – also joined Lavenduski for a panel to kick off the first exhibit day at ASI Fort Worth. For both, it was clear that information around tariffs is constantly in flux.

“The reality is it’s a very fluid situation,” Jellinek said. “Things are changing all the time.”

Dan Jellinek, CRO of Counselor Top 40 supplier The Magnet Group (asi/68507) and Lori Bauer, CEO of Counselor Top 40 distributor iPROMOTEu (asi/232119) talked strategies for tariff preparation at ASI Fort Worth.

Because of that, it’s crucial for suppliers and distributors alike to be proactive with both diversifying their product supply and reaching out to clients with information.

“Now is not the time to be sitting back, but to be in front of your customers with the information and the reality,” Bauer said. “And also setting expectations – if price increases are potentially looming, how are we going to work together with your budget?”

Despite uncertainties about how reciprocal tariffs set to go into effect April 2 will affect prices, both Bauer and Jellinek are cautiously optimistic headed into the rest of 2025. Apparel decorators have been diversifying away from China over the past several years, said Bauer, and many hard goods suppliers have invested heavily in inventory over the past six months with the expectation that prices may rise heading into the spring and summer.

Drinkware is going to be one of the biggest challenges, said Jellinek. But, he added, the promotional products industry is incredibly resilient. It made it through the first round of Trump tariffs – which President Biden continued – through the COVID-19 pandemic, supply chain issues and a number of other difficulties. “And here we are,” he said, “in a full room in Fort Worth all together.”