A new import surcharge took effect in February 2026 — stacking on top of tariffs that have been raising promotional product costs since 2018. If your last branded order felt more expensive than you expected, this is why. Here's what changed, what it costs on a real order, and what your options are.
What changed in February 2026 — and why does it affect your order?
In February 2026, the White House added a new import surcharge on goods imported from China. It sits on top of tariffs that have been in place since 2018. The result: most promotional products made in China now carry a combined import cost of 35% or more.
That 35% isn't a price increase you can negotiate away. It's a government-imposed cost added when the goods enter the US. Your vendor pays it at customs, then passes it to you in the product price.
Before 2018, most tumblers, pens, and tech accessories entered the US at import rates of 0–8%. Today, the same items carry rates of 35–70% depending on the material. That's the gap in your 2026 pricing versus three years ago.
Which products are hit hardest?
Not every product is affected equally. The tariff exposure depends on where the product is made — not where your vendor is located.
| Category | Typical origin | Combined tariff rate |
|---|---|---|
| Stainless tumblers and mugs | China | 35–70% |
| Power banks, cables, tech accessories | China | 35%+ |
| Pens and writing instruments | China | 35%+ |
| Hard goods under $10 | China | 35%+ |
| T-shirts and polos (USMCA or USA) | Mexico or US mills | 0% |
| Fleece and outerwear (USA mills) | USA | 0% |
| Ceramic mugs | Mixed US + import | 0–25% |
| Notebooks and paper goods (US printing) | USA | 0% |
Source: Industry research tracking, May–Sept 2025; ASI 2025 Counselor State of the Industry; White House February 2026 proclamation.
USA-made promotional products — no tariff exposure
What does the tariff actually cost on a real order?
Here's concrete math. Take a stainless tumbler with a $5 landed cost from China. At the current combined tariff rate of 35%, that adds $1.75 per unit in import cost — before decoration, shipping, or any margin.
For a 250-piece branded tumbler order, that's $437 in tariff cost on a single order. At the peak rate of 145% that applied to certain HTS codes in 2025, that same order carried over $1,800 in tariff exposure.
Per industry research tracking from May 2025, the promotional products market grew just 0.42% that year against 2.9% inflation. Tariff absorption was the primary reason real purchasing power contracted even as dollar totals rose.
The de minimis rule — which historically allowed shipments under $800 to enter duty-free — also changed. Industry research noted that small-parcel sourcing channels faced a 54% tariff rate on sub-$800 shipments, closing a workaround some buyers had been using.
What are your actual options right now?
Switch to domestic or USMCA-origin products for high-tariff categories. T-shirts, polos, fleece, notebooks, and certain drinkware lines have US or Mexico manufacturing options. These carry zero tariff exposure. They cost 20–40% more at baseline, but when you subtract the tariff cost, the gap often narrows significantly for high-tariff items like stainless tumblers.
Use a portfolio approach — don't overhaul everything. Not every category needs to switch. Evaluate your recurring orders item by item. If you order branded pens every quarter, look at domestic alternatives. If you're ordering branded apparel, you may already be buying from USMCA-eligible sources without knowing it — ask your vendor to confirm.
Lock in pricing now if you can. Multi-season pricing agreements protect your budget from further tariff escalation. Several vendors are offering extended pricing guarantees in the current environment. Ask your vendor what they can lock in.
Ask your vendor to show you the tariff exposure. Any reputable vendor should be able to tell you the country of origin and estimated tariff impact on a given product. If they can't or won't, that's worth knowing.
The honest math: domestic alternatives cost more upfront. But once you account for tariff savings, the real cost difference on high-exposure categories is often smaller than it looks. Run the numbers before defaulting to the cheapest-looking quote.
Domestically sourced branded merchandise
Backpack 600D Polycanvas High Line Padded - 11 x 16½ x 5½ in
Backpack 600D Polyester with Padded Straps - 12 x 16 in
Sling Backpack Padded Shoulder Mesh Pocket - 12 x 18 x 6 in
Custom Backpack 600D Polyester with Padded Straps - 12½ x 17 in
Custom Backpack 210D Polyester Budget - 12 x 16 in
Sources
- PPAI Promotional Products Association International — Rising Costs Stunting Industry Growth, Jonny Auping, May 22, 2025. Read article
- PPAI Promotional Products Association International — Promo's Slight Growth Faces External Pressures, Jonny Auping, September 24, 2025. Read article
- ASI Advertising Specialty Institute — 2025 Counselor State of the Industry, August 2025. Read press release
- White House — Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems, February 2026. Read proclamation
