The tariff news has come fast and furious during the first few weeks of President Trump’s second term, and more international trade developments have been announced, potentially having a significant impact on the promotional products industry.

  • On his way to New Orleans for the Super Bowl on Sunday, Trump announced a 25% tariff on steel and aluminum imports to go into effect on March 12.
  • When asked what countries would be affected, he responded, “everybody.”


The measures are meant to strengthen U.S. steel and aluminum manufacturing, but there will inevitably be economic repercussions for U.S. industries that have routinely imported these materials, even from nearby sources, such as Canada and Mexico.

RELATED: Navigating Tariffs: Strategies For Distributors And Suppliers

In 2018, Trump enacted a similar policy with steel and aluminum, most of which were rolled back over the course of the Trump and Biden administrations, but other trade barriers, such as quotas, often took their place.

  • A study by the International Trade Commission found that the 2018 version of these tariffs helped the U.S. aluminum and steel industries but had a negative impact on industries that buy those metals to make other things.


Promo Perspective

Drinkware, such as tumblers, is just one of the many examples of promotional products that may be affected by a 25% tariff placed on aluminum and steel. Industries that consume steel and aluminum saw their production shrink by $3.48 billion as a result of the tariffs initially put in place during Trump’s first term in office.

  • Whether these tariffs will be a permanent policy meant to strengthen U.S. manufacturing or part of a larger negotiating tactic, which is widely thought to be the basis of other tariffs he has implemented or threatened, is unclear at this point.


Several suppliers that deal with aluminum or steel declined to comment on the tariffs, expressing to PPAI Media that the uncertainty and suddenness of the tariffs will require them to continue to assess the situation.

Heather Smartt, global head of Goldstar, PPAI 100’s No. 16 supplier, says that this motivates the company to look to other materials that can help meet the expectation their clients have for products.

“With the new tariffs on aluminum and stainless steel, price increases may seem like the obvious response,” Smartt says. “However, we see this as an opportunity to innovate and explore alternative materials that meet both quality expectations and budget needs.

We see this as an opportunity to innovate and explore alternative materials that meet both quality expectations and budget needs.”

Heather Smartt

Global Head of Goldstar

“At the end of the day, this industry is built on resilience. We’ve adapted before, and we’ll do it again, finding better solutions for our partners and pushing innovation forward. Despite last week’s announcement, I remain optimistic and excited to embrace new opportunities over the next four years.”

Alumicolor relies on imported aluminum, which it uses to cut shapes out of to manufacture products such as measuring rulers, according to its general manager, Scott Schoenbauer. The supplier managed to avoid the tariffs issued in 2018 due to the specificity of its products. There will be heightened attention on the official implementation of the tariffs regarding whether Alumicolor will be affected.

“We’re still in the ‘wait and see’ mode on these tariffs,” Schoenbauer says. “The last time tariffs on aluminum were announced in 2018, it applied to raw material extrusions that are used in construction rather than our finished aluminum ruler products. 

The last time tariffs on aluminum were announced in 2018, it applied to raw material extrusions that are used in construction rather than our finished aluminum ruler products.”

Scott Schoenbauer

General Manager, Alumicolor

“Our products are under a harmonized code for ‘Measuring Devices’ and were not subject to the tariff.  They still come in from El Salvador duty/tariff free under the Central America Free Trade Agreement (CAFTA). We are hoping that remains the same with this recent announcement. We will monitor the news and check with our freight company to confirm if this is the case.”


Take Action With PPAI

PPAI, with assistance from our lobbyists at Thorn Run Partners, sent a letter to top congressional leaders on Feb. 6 urging them to work toward a balanced trade policy that protects American interests while ensuring that American businesses, such as those in the promotional products industry, are not disproportionately burdened.

The letter, signed by PPAI President and CEO Drew Holmgreen, describes the concern that the recently announced tariffs on the United States’ three largest trading partners will have severe unintended consequences for American businesses and consumers. The letter also describes promo as a $27 billion market in the U.S. that is fueled by companies of every size, from sole proprietorships to billion-dollar corporations.

“The proposed tariff increases could have significant implications for the promotional products industry, affecting costs and the ability for our global community to deliver the immense brand value and inherent joy that comes from promotional merch,” says Holmgreen. “At PPAI, we believe it’s important to engage in these conversations to ensure our industry’s needs are understood. We encourage this community to raise its voices, connect with policymakers and advocate for trade policies that support a healthy, innovative and resilient marketplace.”

Click here for the text of PPAI’s letter so you can use it as a template to send your own letters to your representative and senators.