The Trump administration on June 11 indicated that it will keep in place what it described as the current tariff rate on China-made imports – the nation from which the U.S. promotional products industry sources the majority of goods sold here.

President Donald Trump said in a social media post that the tariff rate on Chinese products will be 55% – a combination of the 30% levy rates introduced this year and earlier duties of up to 25% that Trump placed on hundreds of billions of dollars’ worth of China-origin goods during his first presidential term, according to various reports.

Speaking to CNBC, U.S. Commerce Secretary Howard Lutnick said the tariffs on China will remain at these levels. “You can definitely say that,” Lutnick responded when asked if the levies were not going to change again. An administration official also confirmed to The Wall Street Journal that tariffs on China will hold at current levels.

Some leaders in the promotional products industry were breathing a little easier at the news, saying a set tariff rate on China will help bring desperately needed stability.

“The clarity around the China tariff policy gives buyers and sellers alike a long-overdue roadmap,” Jake Himelstein, president of Counselor Top 40 distributor BAMKO (asi/131431) and a member of Counselor’s Power 50 list of the promo products industry’s most influential people, told ASI Media. “Yes, prices may go up, but confidence in pricing and sourcing decisions is far better than the paralysis that comes from not knowing what’s next.”

Counselor Power 50 member Dan Jellinek told ASI Media that the 30% tariff rate that came into play on China this year remaining in place will drive price increases on promo products imported from that nation. “It will result in higher pricing on Chinese goods but it will not translate to a 30% increase,” said Jellinek, chief revenue officer of Counselor Top 40 supplier The Magnet Group (asi/68507).

“The clarity around the China tariff policy gives buyers and sellers alike a long-overdue roadmap.” Jake Himelstein, BAMKO (asi/131431)

Power 50 member Frank Carpenito, president and CEO of Counselor Top 40 supplier Gemline (asi/56070), said that speaking in an industrywide sense distributors can probably expect immediate-term price increases of between 10% and 15% on China-sourced goods, with some items going up by as much as 20%. There are sourcing implications for the industry too, he said.

“Short-term, I believe that companies will continue to source largely on a business-as-usual basis, particularly in the case of China-dominated categories, such as drinkware, electronics and entry-level price point items,” Carpenito opined. “That said, the last few months were most likely a wake-up call for many suppliers dependent on single-countries for the majority of their goods. I think you will see more focus on sourcing diversification going forward than ever before. We are thankful that we are many years into our diversification journey, and have very limited single-sourced products.”

At least 60% of promo suppliers had already increased prices through early May 2025, with tariff initiatives from the White House the primary factor behind the hikes.

Some promo suppliers that sell products made from steel and aluminum, like popular stainless-steel tumblers, were working to determine if the 55% China-specific rate would apply on top of the 50% levy on steel and aluminum imports from every country.

While an answer wasn’t fully clear June 11, an executive order Trump issued last week indicated that steel and aluminum components of a product would be tariffed at the 50% steel and aluminum rate, while the remainder of the product will be tariffed at a rate established by the levy applicable to the country of origin.

The steel and aluminum tariff “applies only to the value of the steel or aluminum content,” wrote trade experts at the firm Sandler, Travis & Rosenberg. “Reciprocal (and other applicable) tariffs apply to any non-steel/non-aluminum content of all steel and aluminum articles and derivative articles.”

Context & Legal Considerations

The word on China tariffs holding steady came following two days of trade-focused talks in London between U.S. and China officials. Lutnick said the countries have the framework for a new trade deal, though comprehensive details weren’t yet available.

Trump and his counterpart in China, President Xi Jinping, must sign off on the framework deal.

Reportedly, terms agreed to will include China beginning to supply critical rare earth minerals and magnets again (at least for a time), while the U.S. will permit Chinese students to attend U.S. colleges and universities. Still, some analysts pointed out that uncertainty persists.

“Despite the good vibes, the United States and China remain in an economic standoff,” wrote CNN’s David Goldman.

The Federal Circuit Court has ordered that #tariffs imposed in 2025 can remain for now. The ruling wasn’t based on the merits or lack thereof of the levies, but rather preserves the status quo as an appeal in a case focused on the import duties plays out.https://t.co/ylDRhzIhO1

— Chris Ruvo (@ChrisR_ASI) June 11, 2025

The White House implemented several rounds of tariff increases on Chinese imports this year, with the new rates reaching 145% for weeks this spring.

Following talks between the U.S. and China in Switzerland in early May, the U.S. agreed to drop the 2025-implemented rate to 30% – a combination that includes a 10% reciprocal tariff and 20% tariff related to what the White House has alleged is China’s role in allowing illicit fentanyl to flow into the United States. For its part, China lowered tariffs it had slapped on U.S. goods from 125% to 10%.

The lower rates agreed to in Switzerland were to stay in effect for 90 days but were subject to change dependent on how trade deal talks between the U.S. and China went. Now, the White House is indicating the rates will stay beyond the 90-day period.

“We are getting a total of 55% tariffs, China is getting 10%,” Trump wrote in a Truth Social post.

Trump’s 30% tariffs on China, along with other levies he’s imposed in 2025, are facing court challenges. The U.S. Court of Appeals for the Federal Circuit ruled this week that those tariffs can remain in effect while it considers a case centered on the levies.

Later on Wednesday June 11, Treasury Scott Bessent suggested the Trump administration is open to extending the 90-day pause on nation-specific reciprocal tariffs for top U.S. trading partners that show good faith in trade negotiations. Those tariffs are paused until July 9, meaning that nations subject to reciprocal tariff rates are currently dutied at the administration’s lower 10% baseline tariff rate. The White House said it applied reciprocal levies in proportion to tariffs and trade barriers each of the subject nations place on the U.S. Meanwhile, Trump indicated that the administration could issue what may be final reciprocal tariff rates for many countries, such as those not considered top trading partners, within the next couple weeks. 

Given the legal battles and outstanding questions over tariffs on other nations, Carpenito said that considerable question marks linger.

“What we don’t know yet is how things will shake out regarding tariffs with other countries, will the China deal change yet again, and/or will the federal courts rule that the current 30% tariffs on China are now invalid,” the Gemline C-Suiter told ASI Media. “I suspect the roller coaster ride on tariffs will continue throughout 2025.”