Key Facts
- The U.S. promotional products market had sales of $26.6 billion in 2024, a record high despite global uncertainty (source: ASI).
- Tariff disputes between the U.S. and China began in early 2025, with rates up to 145% on Chinese goods and 125% on U.S. exports.
- In May 2025, both countries agreed to reduce tariffs. U.S. duties on Chinese imports dropped from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%.
- Import cargo volumes from China fell by 9.7% in April, reflecting growing caution among U.S. buyers.
- Inventory is expected to tighten within 60–90 days, as suppliers pause future orders to assess risk.
- Eco-friendly, made-in-USA, and tech-focused items are outperforming traditional promo products in engagement and availability.
- Brands that plan early, diversify sourcing, and personalize offerings are better positioned to avoid disruption and maximize ROI.
The U.S. promotional products industry entered 2025, riding a wave of strong demand and facing a growing list of obstacles. After 2024’s record-breaking $26.6 billion in sales, suppliers and distributors are now contending with tariff volatility, slowing imports, and fluctuating inventory levels.
A sharp trade dispute between the U.S. and China in April 2025 pushed tariffs as high as 145% on Chinese-made goods, including many top promotional categories. China’s retaliatory tariffs on U.S. exports reached 125%. While this caused immediate pricing strain, a resolution in May brought much-needed relief. The U.S. dropped rates to 30%, and China lowered its tariffs to 10%.
The effects are still lingering. Tech accessories, drinkware, writing instruments, and novelty items are still experiencing pricing instability and sourcing challenges. As of 2023, 88% of promotional suppliers rely on Chinese sourcing, making the market delicate.
Import volumes from China were down nearly 10% in April compared to the previous month. According to ASI and industry freight trackers, many suppliers are pulling back on future orders while they evaluate costs and risk. As a result, buyers can expect longer lead times, rising prices, and shrinking stock, especially on bestsellers, in the coming 60 to 90 days.
What This Means for Brands
Companies that wait too long may be priced or boxed out of key promotional categories. Products that were once a reliable staple, like branded tumblers, Bluetooth speakers, and power banks, may soon face delivery delays or run completely out of stock. This environment doesn’t reward those who react; it rewards those who prepare.
But not all the news is bad. Amid this volatility are clear growth areas.
Eco-conscious products are gaining traction, not just because they’re available, but because they resonate. Consumers expect sustainable practices from the brands they support; promotional items are no exception. Reusable drinkware, compostable packaging, and made-in-USA apparel are outperforming on both delivery and impact.
Personalized and experiential giveaways also deliver better returns than mass-distributed items. Customized apparel, subscription boxes, and tech-enabled gifts offer a stronger emotional connection and longer shelf life than traditional promotional gear.
Meanwhile, data-driven decision-making is helping savvy marketers adjust product selections in real time. AI and analytics tools can identify which categories are at risk of going out of stock, which alternatives carry lower tariff burdens, and which segments respond best to specific types of merchandise.
How to Stay Ahead
The fundamentals haven’t changed: relevance, timing, and value still define a great promotional strategy. But in 2025, logistics is now part of the branding conversation. Choosing the right product isn’t just about messaging anymore. It’s about knowing what can be delivered, when, and at what cost.
Here’s what leading brands are doing:
- Locking in inventory early, especially for summer and fall events.
- Switching to made-in-USA or nearshore products to minimize tariff risk and shipping delays.
- Working closely with trusted suppliers for up-to-the-minute updates on pricing and availability.
- Doubling down on high-impact products—things people will use, keep, and discuss.
For a deeper look at how tariffs and supply disruptions are reshaping the promo industry, and what you can do to adapt, read our full breakdown at Logotech:
Tariffs and Inventory Forecast: What’s Ahead for the Promotional Industry
The coming months will test how well companies can align creative marketing with operational strategy. Those who adapt early will be rewarded with inventory, customer trust, and lasting brand visibility.