The tariff roller coaster continued over the weekend as Treasury Secretary Scott Bessent is now claiming that the framework for a trade deal with China has been negotiated. Bessent told NBC News’ Meet The Press that China was prepared to come to terms with the U.S. after the two sides had negotiated for two days.
- If true, the global supply chain would avoid 100% tariffs that the U.S. was set to place on Chinese goods beginning November 1.
This development only suggests the framework for a deal, and Trump is set to meet with Chinese President Xi Jinping on Thursday, which could change everything. However, in terms of immediate practical implications, averting the tariff jump on Chinese goods ahead of November will have a significant impact on the promo industry and the general economy.
“President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs, and I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese,” Bessent said.
Scott Bessent
Secretary of the Treasury, United States Of America
The two countries represent the largest economies in the world, and China exports many materials for U.S. industries, including promo.
Canadian Tariffs Shoot Up
On the other hand, Trump announced he’s raising Canada’s tariff rate by 10% in response to a TV commercial protesting Trump’s trade policy airing during Game 1 of the World Series on Friday night.
The ad, funded by Ontario’s government, features audio with excerpts of a 1987 address by former President Ronald Reagan cautioning about the long-term economic risks of high tariffs. The remarks came on the heels of Reagan imposing duties on Japanese products, ABC News reported.
- Earlier in the week, Trump had called off trade negotiations with Canada due to the ad.
- On Saturday night, the ad aired again during Game 2 of the World Series, which is being played between the Los Angeles Dodgers and the Toronto Blue Jays.
According to PPAI’s advocacy firm, Thorn Run Partners, the current tariff rates on Canada are:
- 0% on all products covered under the United States-Mexico-Canada-Agreement
- 10% on energy/resources
- 10% on potash (non-USMCA);
- 35% on other products (excl. Sec. 232 goods)
- 40% for transshipment
- 250% on dairy/lumber
‘What Is The Endgame?’
Business leaders across the board have been struggling with constant changes in duty rates since the first tariff announcements and pauses in April.
The persistent back-and-forth has shifted business from growth to “wait and see,” which is stagnating to companies and the economy overall, says Chris Anderson, CEO of HPG, PPAI 100’s No. 4 supplier.
“We need clear communication from Washington as to what is the endgame,” he adds, “because the whipsaw effect of back-and-forth tariff announcements, and the posture toward China in particular, makes it difficult to invest in business.”
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The constant changes mean every quote and potential project takes far longer than it used to, says Mary Jo Tomasini, MAS+, CEO and founder of Competitive Edge, PPAI 100’s No. 62 distributor. “Every time I blink, something is changing or threatening to change.” This also makes it impossible to lock in prices, which is frustrating for both her team and their clients, she adds. “We’re all at risk of losing the business, ultimately.”
Mary Jo Tomasini, MAS+
CEO and founder, Competitive Edge
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Thorn Run Partners has compiled a special report reviewing the tariffs imposed by the administration so far, as well as some of the actions potentially on the horizon. Read or download the full report below to learn more about:
- Court challenges to the “fentanyl” and reciprocal tariffs imposed under the International Emergency Economic Powers Act.
- Tariffs imposed and proposed on Chinese-origin maritime cargo handling equipment by the U.S. Trade Representative.
- Steel, copper and aluminum (and derivative products) tariffs levied under Section 232.
- What tariff rates now apply to shipments previously exempt under the de minimis rule.
- Tariff rates listed by country of origin, with the latest updates highlighted.
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Access the full report here:
For questions or suggestions on regulatory or government affairs issues, please contact Rachel Zoch, PPAI’s public affairs manager, at RachelZ@ppai.org.
