Momentum - Business to Business Online Magazine MOMENTUM December 2018 - Page 22

New Trade Tariffs What Will It Mean For Your Company’s Marketing Budget? By: Teri Little Empire Creative Marketing teri@empiread.com We all have them, we all love them. Promotional products remain one of the best ways to engage with current and potential customers. Some changes are on the horizon for the promo product industry… In late 2018, and going into 2019, new trade tariffs are being imposed, affecting goods being imported from China. It’s no secret or surprise that many of the low-cost items that are being used for giveaways to promote your business are manufactured in China. With increases of cost expected to be from 10 to 25%, naturally, we should expect to see the cost to purchase these items also increase. While the suppliers of these products work hard to find ways to offset the increase, it’s unlikely they will be able to totally offset the tariff cost. So – what should you expect from the promo product industry in 2019? We can certainly expect that many of the items you order will be a little more expensive. With manufacturers working hard to reduce costs in other ways – such as distributing only digital catalogs rather than paper ones – we hope the increases will be contained to 10 – 20%. We can also expect more fluctuations in pricing throughout the year based on which tariffs are actually imposed, and how agile the distributors will be in sourcing materials. We can expect to see an increase in Made in America items, or items made in other countries that have more favorable import policies. We’ll continue to watch and see how many of the proposed tariffs are imposed – this will ultimately determine how prices are affected. Careful strategizing of what to invest in will make sure you get the most value for your spend. Promotional products continue to be a great way to market your business. They are one of the few special marketing items that people hold on to – guaranteeing that your message is consistently seen by your audience. 21 MOMENTUM / December 2018