Rick Heinl never wanted to raise prices. The CEO of label and packaging commercial printer Repacorp joined the business in 1978 as a sales representative and bought the company just 12 years later. He has grown it from $800,000 to $55 million in revenue.

But lately, business has been tough. Heinl is one of many promo industry leaders who have felt the impact of the president’s reciprocal tariffs, which have slapped steep levies on goods from trade partners around the world. Heinl says he’s going to have to raise prices, but his customers are threatening to bring their business elsewhere if he does.

“A lot of people are holding off on pulling the trigger on purchase orders, so there’s plenty potential business that’s just sitting there,” he says.

Now, a new tariff on lumber could put added pressure on an industry that is already feeling the business repercussions of the trade war. The one with the greatest potential impact on the promo and printing industries is a 10% tariff on foreign softwood lumber and timber that will go into effect October 14. President Trump also will institute a 25% levy onto kitchen cabinets, vanities and upholstered wooden furniture, with tariffs on cabinets and upholstered furniture increasing beginning January 1 to 50% and 30%, respectively. It’s a move the president says is intended to bring industrial manufacturing back to America and support national security.

“In my judgment, the actions in this proclamation will, among other things, strengthen supply chains, bolster industrial resilience, create high-quality jobs and increase domestic capacity utilization for wood products such that the United States can fully satisfy domestic consumption while also creating economic benefits through increased exports,” President Trump wrote in an official White House proclamation.

A few international trade partners – namely the European Union, the U.K. and Japan – are exempt from these tariffs based on prior negotiations with President Trump. A 10% tariff will be applied to wood and furniture goods imported from the U.K., while the EU and Japan will face 15% levies on those same goods.

Economists and homebuilders say this latest round of tariffs could have consequences for the housing and real estate industry, exacerbating the affordability issues that potential homebuyers are already navigating.

Print and promotional products companies, responsible for sourcing and shipping wooden promotional products like softwood coasters, as well as paper and print products made from wood, might also feel the pinch.

The Complicated History of Wood in America

While the U.S. already produces a significant amount of its lumber domestically, it imports roughly a quarter of its supply internationally. And according to a report from the Winnipeg Sun, 90% of those imports come from Canada.

While the U.S. sources a percentage of its wood supply from other countries like Brazil, China and Vietnam, Canada is the clear loser in this latest round of tariffs. The nation already faces a 35% tax on goods to combat unfair pricing and subsidies, as reported by Reuters.

Tariffs on lumber add complexity to ongoing trade negotiations between the U.S. and Canada that date all the way back to the 1980s, and reached a key inflection point in 2020 when the United States-Canada-Mexico free trade agreement went into effect, with a mandatory joint review occurring after six years.

Now, with 2026 on the horizon and a barrage of new tariffs tacked onto Canadian goods, Canadian Prime Minister Mark Carney is eager to get Trump’s attention to come to an updated agreement. The two leaders met in Washington, D.C., earlier this week, marking their second face-to-face encounter in six months. Carney has faced ongoing pressure from his constituents to secure a deal that would lower tariffs on lumber and steel. Canada is the only G7 country that hasn’t reached a trade deal with President Trump in his second term.

How a Lumber Tariff Could Impact Promo

Suppliers who manufacture their products domestically but source their lumber internationally are most likely to get hit with the latest tariff. So, while an imported coaster wouldn’t be subject to lumber-specific taxes, a domestic manufacturer might need to pay a tariff on the raw material used to produce those goods. Domestic producers of print products and paper material goods could face similar challenges since paper is made from wood.

Corrugate boxes, which are used across the industry to ship products, and also for branded packaging, are manufactured by breaking down raw softwood lumber in a process known as “wood pulping.” Lauren Davis, senior marketing director at Box Genie (asi/41301), a company that produces and manufactures custom corrugate boxes, says you get what you pay for when it comes to sourcing. The Kansas City, MO-based packaging supplier manages its supply chain domestically, from raw material gathering to final production. Box Genie also builds many of its products using recycled material, a practice she encourages others in the industry to experiment with.

“It’s good for the earth,” Davis says, “but it also has an added benefit of helping avoid tariffs because you don’t have to rely on shipping raw material.”

Transparency, Communication Key To Navigating Tariff Uncertainty

As tariffs continue to change on a near-weekly basis, it’s possible that President Trump could add additional wooden goods to the updated list of tariffs. This term, the U.S. Supreme Court will hear a case that will ultimately decide the fate of President Trump’s reciprocal tariff policy and the legality of the emergency authority granted by Congress to turn these tariffs into a political reality. Much of this is beyond the control of any single supplier or distributor.

What businesses can control, of course, is how they treat their customers in the wake of economic instability.

Peter Boumgarden, a professor at the Olin School of Business at Washington University in St. Louis, encourages suppliers and distributors to make sure they understand their customers before making any significant changes in response to these lumber tariffs.

“To put it into perspective, if 25% of the total cost of your product is driven by the cost of wood, a 10% increase is going to drive up your pricing 2.5%,” he says. “Increase that to 25% as is the case with upholstered wood, and you are going to be looking at 6% or more of an impact [to customers].”

He adds that businesses need to get a feel for the level of price sensitivity among customers.

“If it’s weak, the time is now to start exploring opportunities for domestic supply or other pathways to changing the cost structure,” he says. “In the absence of those opportunities, the need is either to increase the brand commitment to your product or drive increased volume to get the same kind of profit as you would have had in the past.”

“Small businesses are in the most challenging position. They have less bargaining power vis-à-vis their trading partners abroad and less of a financial cushion to weather tariffs over time." Minuk Kim, Bryn Mawr College

Daniel Baker, director of integrated marketing at BCG Creations, says that in the current economic moment, it pays to be a company with a sizeable footprint in both the U.S. and Canada. As a subsidiary of Counselor Top 40 supplier HPG (asi/61966; Canada, asi/48886), BCG operates eight factories including two large facilities – one in Texas and another in Toronto – and offers a bevy of wood products, including ornaments and keychains.

“Being in both countries enables different domestic routings and we’re able to pivot where and when necessary,” Baker says.

Lacking clarity around what a future trade deal might look like, Baker adds that it’s more important than ever to be transparent about costs with customers. And although he takes pride in BCG’s ability to communicate effectively and cater to customers’ tariff-related questions and concerns, he’s looking for a more stable trade policy.

“Stability on economic policy makes for better business outcomes,” he says.

That’s especially true for smaller operations. A May 2025 report from the National Small Business Association found that 70% of small business owners agree that constant trade policy shifts make it hard to plan.

“Small businesses are in the most challenging position,” says Minuk Kim, an assistant professor of economics at Bryn Mawr College who studies public policy and international trade. “They have less bargaining power vis-à-vis their trading partners abroad and less of a financial cushion to weather tariffs over time.”

In the short term, Kim recommends locking in lower lumber prices as much as possible before supply tightens. And over the long term, “consider differentiating into higher value or niche offerings such as custom or locally branded products where customers are more willing to accept price increases,” he says.

Large companies also remain concerned about the impact of U.S. trade policy on their bottom line. A new report from KPMG, which surveyed 400 chief executives at companies with $500 million in annual revenue or more, found that 86% of execs plan to increase their prices due to tariffs.

“Now more than ever, we need to have faith in providers who are honest about where they’re getting materials. It pays to partner with companies that value transparency.”Lauren Davis, Box Genie (asi/41301)

But compared to many other sectors, the promotional products industry has an opportunity to offer a diverse range of products. Most suppliers don’t sell wood products alone, and if they do, they can experiment with alternative materials that are comparable to softwood. Baker recommends selling goods made with materials like bamboo, which many suppliers are already using for products like notepads, cutting boards and coasters.

For businesses that source raw material internationally, it can feel especially overwhelming to navigate these tariffs. But Davis says amid all the uncertainty, there’s a reason to remain hopeful.

“Now more than ever, we need to have faith in providers who are honest about where they’re getting materials,” she says. “It pays to partner with companies that value transparency.”