Recent data bears out a harsh reality through the first four months of 2025: Promo suppliers are feeling the pressures of external factors such as global trade volatility.

In March and April, the industry’s year-over-year growth slowed at a rate lower than any two-month stretch in 2024. It was PPAI 100 suppliers who largely accounted for those numbers, in contrast to their distributor counterparts, 81% of whom reported increased revenue during that stretch.

  • A potentially worrying 37% of PPAI 100 suppliers reported decreased revenue in March and April.
  • Only about half (51%) reported revenue growth in that same timeframe. While that still represents a majority, only 7% reported what they considered significant gains.


It appears impossible to deny that tariffs (whether already in place or uncertainty surrounding them) and trade wars, specifically with China, have led to increased prices in the manufacturing world.

RELATED: PPAI Research: Distributors Expanding Supplier Base Amid Volatility

“Cost increases are the norm, not the exception,” says Alok Bhat, market economist and PPAI’s research and public affairs lead. “Suppliers that haven’t yet felt the squeeze may only be a quarter or two behind.”

Amid all of this, promo suppliers are having to adapt to all this global disruption. PPAI Research surveyed PPAI 100 suppliers in March and April to get further insights into the strategies they’re taking in sourcing.

Below are findings on their observations concerning recent global developments.

How Many Are Avoiding China? And Where Are They Going?

Trade relations between China and the U.S. have been anything but stable and predictable over the past few months. Barring significant progress in negotiations, it appears that will be the case for the next month.


These measures have already created a “supply shock” to global trade, affecting promo and other industries that have long relied on China for manufacturing. As things stand, sourcing out of China is more expensive than it was last year, and beyond just the price of current tariffs, the uncertainty around tariff rates even two months down the line make planning potentially untenable for some firms.

So, how many PPAI 100 suppliers are actively finding sourcing alternatives in light of recent developments?

  • Just under two thirds (64%) in March and April claimed to be expanding their sourcing footprint.
  • Almost one third (31%) reported no major sourcing changes.


Taken together, Bhat says, “this reflects growing urgency to reduce dependence on China, manage tariff exposure and strengthen resilience across the supply chain.”

With a majority of suppliers looking for new sourcing options, it begs the question: Where are they going?

  • Vietnam is the most commonly reported country (60%) for sourcing alternatives, with India also proving to be a regular option out of Asia for PPAI 100 suppliers.
  • Many U.S. suppliers are looking domestically at this point in time, with 46% looking to source from within their own borders.
  • Mexico (16%) and Central/South America (14%) have established themselves as nearshoring hubs for PPAI 100 suppliers.


“Vietnam has multiple free trade agreements, reducing tariffs and improving access to global markets,” says Ricky Ho, co-founder and CEO of SourceReady – an all-in-one AI-powered product sourcing platform. Ho adds that there are additional challenges in dealing with Vietnam, as the country also relies heavily on China for certain materials.

What Global Risks Do Suppliers Fear Most Right Now?

Global trade instability creates concerns in every industry. PPAI Research asked PPAI 100 suppliers about their top worries amid the economic uncertainty.

  • Unsurprisingly, the top worry (70%) was escalating China tariffs or retaliatory trade action. It should be noted that this data was gathered prior to the temporary lowering of tariffs on Chinese imports.
  • The reverberations of tariffs and resulting inflation have affected the larger economy, leading 45% of suppliers to fear demand volatility or buyer unpredictability.
  • The longer tariff impacts remain, the more suppliers (43%) grow concerned over global logistics bottlenecks, which can lead to supply chain delays.


  • More than one fifth (23%) of suppliers are reporting concerns over regulatory uncertainty, such as shifts in de minimis policies, ESG and labor laws.


Don’t count Teresa Fudenberg, CEO of Storm Creek, PPAI 100’s No. 33 supplier, as one of the companies that has observed anything warranting concern over changing ESG rules.

“There may be dialing back on the ‘social’ component, but we’re not seeing that on the ‘environmental’ component,” Fudenberg says. “The state-by-state landscape on the environmental side is increasing. We continue to see concern over what goes into apparel production.

The state-by-state landscape on the environmental side is increasing. We continue to see concern over what goes into apparel production.”

Teresa Fudenberg

CEO, Storm Creek

“In Q2, we saw a marked increase in requests for sustainability/compliance documentation. We had 15 requests in one recent week alone, showing the continued push for people wanting to be environmentally compliant, especially in regard to PFAS/harmful chemicals and the specific rulings that took effect in January. We have daily distributor requests for certification documents by product, compliance certificates, COO, bluesign and OEKO-TEX documentation and more.”

  • Geopolitical instability (such as elections, wars or sanctions) is a concern among 20% of PPAI 100 suppliers.


A common frustration with sweeping tariffs is that there simply aren’t infrastructures for manufacturing certain materials or products domestically or outside of heavy tariff countries. A potential solution to this would be to exempt certain items from existing tariffs. The following were the top categories nominated by suppliers to qualify for exemption:

  • Drinkware (citing a lack of viable domestic production)
  • Apparel (with calls for relief to support small businesses and U.S. decorators)
  • Tech & Electronics (overwhelmingly produced in China)
  • Canopy, tents, lanyards, pens and umbrellas