The Truth About Tariffs

By now most of you know that President Trump has put tariffs on a wide range of products imported from various countries throughout the World. This article is not meant to be political, it is meant to answer some common questions people may have so they can make informed decisions when purchasing promotional products and apparel.

1. What is a tariff? Tariffs are a tax on imported goods. They are designed to protect American industries by increasing the cost of goods imported from overseas. The "hope" is that American consumers will reject the foreign import and then buy American.

   
   

2. Who pays the tariff? You do! Most products are purchased overseas and either assembled or printed in the US. When the importer pays for the goods, they normally pass the price increase to the consumer.

3. I don't purchase promotional products. Yes you do. The majority of food you consume or products you purchase all have packaging. So when the price of cups goes up, so does your coffee (BTW, there is also tariffs on coffee).

   
   

4. I only buy American. As mentioned above, we live in a global economy. Most products are hybrid. Meaning, parts are shipped from overseas and then assembled, printed, or labeled here in the US. However, let's assume that statement is true. What do you think a smart American company will do when it's competitors are selling products at a 15% higher price? Furthermore, what will happen when that American company has employees who need more money since their cost of living has gone up? If you guessed raise prices, you are correct!

5. When will prices go up? It depends. Most US companies have anticipated these tariffs and have built up an inventory. Some businesses have already elected to gradually increase prices while others will wait until they run out of inventory to increase prices.

   
   

   What should I do? Plan ahead. If you plan on purchasing promotional products or apparel in the next 90 Days, contact us. We will contact the supplier and check their inventory on hand. If they are low on inventory, we will advise you to purchase right away so you can get the best price. We're in this together! If you have any questions or concerns you can email us at info@imaginethatpromo.com.