Key Takeaways
• Metal Hikes: President Trump plans to double steel/aluminum tariffs to 50% on June 4, sparking cost increase concerns in promo for products containing the metals.
• Affected Categories: Products that could see additional price increases include drinkware, housewares and display stands.
• Economic Justification: Trump has said the metal tariffs will strengthen America’s steel industry. The president also announced a deal between U.S. Steel and Japan’s Nippon Steel that the president said will create jobs domestically.
President Donald Trump said he plans to double the tariff rate on imported steel and aluminum from 25% to 50%, effective Wednesday, June 4.
If enacted and applied as broadly as the current 25% rate has been, the heightened levies could increase costs associated with importing items that contain the metals. That would include drinkware like stainless-steel tumblers along with other items sold in the promo products industry, including housewares/kitchenwares, display stands with steel frames and certain outdoor-focused products, like brandable camping chairs.
Teams at some supplier firms were hard at work early the week of June 1 studying the situation, executives said.
“If this ‘sticks,’ it will surely add costs for industry suppliers,” said John Bruellman, CEO of Sign-Zone, the parent company of Counselor Top 40 supplier Showdown Displays (asi/87188) and also a member of Counselor’s Power 50 list of promo’s most influential people. “Still, there are some things that lack clarity at the moment. Is this global? Is this directed at specific countries? Is it directed only at China? We need more information.”
The 25% steel and aluminum tariff currently applies to all countries, no exceptions. Canada and the European Union have denounced the plan for increased tariffs on the metals, with the EU indicating it would retaliate.
Counselor Power 50 member Dan Jellinek has felt that steel/aluminum tariffs and country-specific tariffs on China implemented so far in 2025 were going to present new cost challenges to producing and importing stainless-steel promo drinkware, much of which is made in China. If the increased steel/aluminum rates are enacted, that will further intensify the cost pressures, he said.
“As tariff rates change by the minute, it’s tough to be proactive,” said Jellinek, chief revenue officer at Counselor Top 40 supplier The Magnet Group (asi/68507). “We’re forced to be more reactive to the changes, as we truly don’t know where everything will land. Still, we stay on task and on plan, be fair, be honest, and communicate with our distributor customers.”
Indeed, suppliers are trying to stay nimble. Showdown Displays, for instance, could potentially leverage its ability to move supply sources for affected metals. “We’ll be working through those options as more details emerge” on steel/aluminum tariffs, said Bruellman. He also noted that as a domestic manufacturer/producer, the “cost of this round of tariffs shouldn’t be too extreme for us.”
Like at least 60% of promo suppliers, Showdown was implementing price increases – effective Monday, in Showdown’s case – to deal with cost increases from earlier tariffs. However, the firm had no plans for additional increases at this time. “We know our customers value stability and predictability and we will continue to do everything we can to give that to them,” Bruellman said.
Trump’s Reasons for the Tariffs
On the evening of May 30, Trump revealed the intended tariff increase on steel and aluminum during a rally at U.S. Steel’s Mon Valley Works-Irvin Plant in West Mifflin, PA. At the event he announced a deal between Japan’s Nippon Steel and U.S. Steel that the White House has termed an “investment” and “partnership.” Nippon will reportedly invest $14 billion and the deal will “create at least 70,000 jobs,” the White House said, while keeping U.S. Steel “controlled by the U.S.A.,” Trump noted.
Trump has said the tariffs on steel and aluminum imports from any country will help safeguard and strengthen the United States’ domestic steel industry, a development the president believes is necessary for national security and for broadly bolstering the nation’s manufacturing sector and economic power.
“Our steel and aluminum industries are coming back like never before,” Trump said on social media in discussing the plan to increase steel/aluminum tariffs and the U.S. Steel/Nippon deal. “This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers.”
Various tariffs and related uncertainty over the Trump administration’s plans to implement them have hurt sales this year and driven up pricing in the promotional products industry, while also affecting importing and sourcing strategies and raising worries about inventory shortages. Last week, a federal trade court halted many of the 2025-implemented levies, saying Trump didn’t have the legal authority to enact them. However, an appeals court temporarily suspended that ruling, making the tariffs enforceable for the time being.
