Tariff Update: What You Need to Know
- Lea Dean
- May 22
- 4 min read
Stay informed:
Get the latest tariff details anytime with the Tariff Tracker.
The Big Picture
Tariffs can be confusing, but here’s what matters:
Current Tariff Rates (Section 301, since 2018): Products from China may have tariffs of 0%, 7.5%, or 25%, depending on their classification. These are paid to U.S. Customs at import and are included in our wholesale pricing.
Why Do Tariffs Exist?
Tariffs aim to:
Support U.S. manufacturers
Protect key industries
Raise government revenue
However, they can also lead to higher prices, trade retaliation, and a reduced GDP.
What’s New for 2025?
Several new tariffs have been introduced this year:
Feb 4: 10% tariff (rising to 20% Mar 4) on goods from China to curb fentanyl imports
Mar 12: 25% on certain aluminum/steel goods (all countries)
Apr 2: "Liberation Day" tariffs – up to 49% based on trade imbalances
Apr 9–12: Trade war escalation with China – their rate briefly jumped to 125%
May 12: 125% tariff dropped temporarily to 10% during negotiations with China
🟠 Note: Tariffs may change quickly and without notice!
Pricing Updates
New 2025 pricing begins June 1st, as part of our annual review, reflecting tariff impacts and market costs.
Sourcing FAQs
Q: Can you source from the U.S.?A: Yes, when possible. Some industries like textiles currently lack domestic options, but we welcome their return.
Q: Can you avoid China?A: We’re expanding sourcing in India, Mexico, Vietnam, and beyond—but note these countries also face tariffs.
Q: How long will tariffs last?A: There's no end date. Tariffs will likely remain until trade negotiations change the landscape.
Want to learn more?
So that's the short of it. Here is the longer more detailed version of the above snip.
May 2025
We understand that the current trade environment and the associated tariffs can be confusing and concerning. To help clarify the situation and explain how these changes affect our business, customers and future outlook, we have created this outline.
We want to be transparent about how tariffs work, who is responsible for paying them, and, most importantly, how we are navigating these challenges to minimize disruption, maintain the best possible pricing for you, and continue to provide you with the quality products and service you expect.
The current tariff section 301 rates (enacted in 2018) on products imported from China vary. Items that fall under the Section 301 categories are either tariffed at 0%, 7.5%, or 25%, depending on their harmonized tariff schedule (HTS) classification.
These tariffs are paid to US customs at the time of import based on the cost of the item. These costs are included in the wholesale pricing and become a part of the total wholesale cost.
Q - What is the purpose of the tariffs?
A - First, the concept is to protect domestic manufacturers by making imported goods less competitive and potentially increase domestic employment. Tariffs can also be used to protect industries deemed critical to national security such as defense or agriculture. It can also be a way to generate government revenue, although that is debatable since retaliatory tariffs on US exports are expected and would decrease US tax revenues.
Secondly, tariffs will raise $2.1 trillion in revenue over the next decade on a conventional basis ($1.4 trillion on a dynamic basis) and reduce US GDP by 0.7 percent, all before foreign retaliation. (See resource below, tax foundation.org)
Q - What new tariffs are expected in 2025?
A -Here's a breakdown of the new tariffs introduced this year:
Effective February 4th, 2025, a 10% tariff on all goods imported from China was introduced under the International Emergency Economic Powers Act (IEEPA), specifically targeting the influx of synthetic opioids, including fentanyl, into the United States. This IEEPA (Fentanyl) tariff then increased to 20% on March 4th.
Effective March 12th, a 25% tariff on certain products made of aluminum or steel was added regardless of the country of origin. For example, this will affect steel bar sets and BBQ grills.
On April 2nd, “Liberation Day” tariffs, also referred to as IEEPA (Reciprocal) tariffs, were announced. These started with a base rate of 10% for all countries, with higher rates applied to most based on their existing tariffs on US goods or a significant trade deficit with the US.
The initial IEEPA (Reciprocal) tariffs included rates such as 34% for China, 26% for India, and 49% for Cambodia.
On April 9th, China responded by increasing its tariffs on the US, leading to a trade war. Consequently, the IEEPA (Reciprocal) tariffs on goods from China escalated from 34% to 125% within a few days.
On April 10th, the IEEPA (Reciprocal) tariffs for the rest of the world were temporarily reduced to 10% for 90 days. This was intended to incentivize other countries to negotiate trade agreements with the US.
On May 12th, the US entered into negotiations with China and announced a temporary reduction of the 125% IEEPA (Reciprocal) tariff to 10% for 90 days. The aim is for both countries to reach a deal before the rate is scheduled to increase again to 34% on August 12th.
The tariff situation is still very dynamic, and changes can occur with little or no prior notice.
NEW prices for 2025 effective June 1st. It is our normal practice to perform an annual price review and make adjustments based on current costs. This review will coincide with the tariff updates.
Q - Can you source from US manufacturers?
A- Yes, we do. Those product options are on in our search tool. However, every product doesn’t have a viable domestic source. Textile industries exited the US many decades ago. We may see this return and we will embrace any new influx into domestic manufacturing.
Q - Can you source factories outside of China?
A- We are working with sources in India and Mexico and will be expanding our efforts to Cambodia, Vietnam, and Thailand. While these countries have great potential, they are not as advanced as China in terms of innovation, quality control, efficiency, and reliability and are also now subject to US tariffs.
Q - How long will these tariffs be in place?
A- There is no set expiration date. Depending on the current trade negotiations and/or consequences to the world economy, we expect them to be in place for the foreseeable future.
More resources on tariffs:
2025 Fact Sheet:
White House News
Tax Foundation
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