Remind Me. What’s Going On With Tariffs?
On January 20th, 2025, President-Elect Donald Trump will be sworn into office as President of the United States. During his campaign, Trump indicated that once inaugurated, one of his first Executive Orders would be to impose a 10% tariff increase on imports from China and 25% tariffs on Mexico and Canada.
How Will This Impact All Involved?
China, Mexico, and Canada are the three largest goods importers to the United States. This new policy would mark a significant uptick in tariffs for each importing country, setting an unprecedented policy on foreign exchange. While it’s impossible to predict exactly what will happen, if these tariffs are imposed as planned, we can expect that the cost of goods will increase.
Why Is This Happening?
These tariffs are part of Trump’s “America First” agenda, where the hope of increased prices on foreign goods will cause an increase in the production of domestic goods. The tariffs on Mexico and Canada are to disincentivize American companies from moving their manufacturing plants to those countries.
Global Promotional Sourcing’s Stance on Potential 2025 Tariffs
As we navigate the post-election landscape, GPS acknowledges the uncertainties surrounding President-elect Trump's proposed tariffs on imported goods. Tariffs on imported products pose a significant concern for businesses and consumers, potentially leading to higher prices and supply chain disruptions. While specific policy changes remain unclear, we want to reassure our customers that GPS is as well-positioned as possible to meet their needs in a responsible and efficient manner.
Supply chain resilience has long been a cornerstone of our strategy, and we are committed to further strengthening this foundation to mitigate risks wherever possible. Given the uncertainty surrounding the new administration's implementation of this campaign promise, we at GPS have decided it is critical to initiate conversations with our entire supply chain to explore our options to mitigate the potential impact. We're fortunate to have built longstanding and meaningful relationships with our factory and shipping partners, and we are working closely with our suppliers to explore options for reducing costs. We have also expanded our domestic and international suppliers network to include partners outside regions most likely affected.
While we are confident in our ability to manage many of these challenges, significant across-the-board tariffs on imports may make price adjustments unavoidable. Nonetheless, GPS will continue to monitor legislative developments closely and act swiftly to address any changes that could negatively impact our business. GPS is prioritizing minimal disruption to our operations while maintaining the high level of service our customers expect.
We remain steadfast in our commitment to exceptional service as we work to deliver reliable solutions in an evolving global landscape.
We’re Here To Help
Contact us today to explore ways to mitigate the potential tariff impact on the casino gifting business.
