Tariffs are threatening the 31-year-old supplier of promotional products, the Greater Pacific region. “We had to stop booking new businesses because the more money we booked, the more money we lost,” said Ben Zhang, founder, president and CEO of Great Pacific.
Great Pacific Resources provides customized branded products to major customers, including many Fortune 500 companies through distributors. Think of the tote bag and reusable water bottle you used in the last meeting.
But now it has to stop its hundreds of projects in China’s production. “When they arrive at our customs, we will be hit by tariffs, which will add $2 to $3 million in unexpected fees,” Zhang said. “Small businesses like us can’t absorb those fees.”
He said he had told his 70 employees to stop working from May 1 but planned to pay some of their salaries and medical benefits as long as possible.
Industry hit by triple-digit tariffs
Article 301 Some tariffs on Chinese imports are currently at 145%, and the entire promotional product industry is competing for. In the conference and event industry, the consequences are spreading, where brand giveaways remain a staple of individual engagement strategies.
Promotional Products Association International (PPAI) said tariffs are now the number one concern for 82.4% of its top 100 companies. The organization also reported that 66.7% of its top 100 suppliers face higher costs, with more than 78% of products raising product prices to protect profit margins.
These increases will reach the event budget when planners are already increasing costs.
In response, 70% of suppliers are transferring purchases from China. Among the alternative manufacturing centers considered include Vietnam, Bangladesh, Indonesia, Malaysia and Thailand, Central America, and the United States
To reduce reliance on Chinese manufacturing, Zhang invested in Sourceready, an AI-powered procurement tool connected to more than 600,000 manufacturers in countries such as Vietnam, Cambodia, the Philippines and Mexico. Zhang said outsourcing to other countries faces challenges.
“Many of these counties are taking advantage of this and raising prices,” Zhang said.
Great Pacific also considers using U.S. factories “They can’t meet our timeline. The U.S. does not have a complete supply chain like China that has labor, raw materials, factories, logistics, etc.”
PPAI attracts congressmen
PPAI is trying to help.
“We have long supported free trade, but any measures, including tariffs, must be implemented strategically to minimize damage. Sudden cost increases will not only affect large companies; they will drip into small distributors, impact jobs and ultimately reshape the pricing bureaus across the industry,” Drew Holmgreen holmgreen, president and president of PPAI.
PPAI urges policy makers to consider broader implications. “We are advocating for a thoughtful approach,” HomeGreen said. “We hope that trade policy will strengthen the U.S. economy without stopping U.S. businesses from being caught off guard.”
PPAI is in active discussions with trade lawmakers with the National Retail Federation, the American Apparel and Footwear Association, and the American Fashion Industry Association, promoting targeted, transparent trade frameworks that give companies time to adapt, especially as planners for forecasting 2025 and beyond.
The behavior of stolen goods has also attracted attention
The pressure will not stop due to tariffs. The Government Act Act (Stop Waste Advertising, which prohibits federal agencies from using government funds to purchase, acquire or distribute promotional products, has also attracted attention. Many of these giveaways are often used in public health and safety campaigns.
The UK also bans government spending on branded goods, part of an initiative, and the scheme is “destroying wasteful spending”.
