Following recent U.S. trade developments, SanMar has issued a follow-up to its earlier response on reciprocal tariffs. With a newly announced 90-day pause on most tariff changes—excluding a sharp increase on goods from China—SanMar is adapting its pricing and production strategies to minimize the impact on its customers. The company’s latest statement outlines a clear plan moving forward, reaffirming its commitment to transparency and long-term support for the branded merchandise industry.
New Tariff Rules: What Changed And Who’s Affected
On April 10, 2025, the White House announced a 90-day pause on reciprocal tariff increases. During this pause, most imports will see a flat 10% tariff. The major exception? Imports from China, which now face a steep 145% tariff—signaling a significant shift in trade dynamics.
For SanMar, this means reworking its pricing plans and taking immediate action to reduce reliance on Chinese production. According to President and CEO Jeremy Lott, fewer than 7% of SanMar products were sourced from China at the start of 2025, and the company is close to ending production in the region altogether.
Pricing Strategy: What SanMar Is Doing Differently
SanMar is adjusting its pricing in response to the new tariff structure:
- June 1 Price Increase: A modest increase will take effect on all private label and retail brands. While this is a change from SanMar’s earlier plan, the increase is now more restrained to align with the new 10% tariff level.
- Volunteer Knitwear Stays Steady: Prices for SanMar’s basics brand, Volunteer Knitwear—made entirely in Tennessee—will remain unchanged since it’s unaffected by international tariffs.
- Future Adjustments Possible: After the 90-day pause, SanMar will reassess the need for further pricing changes, depending on how negotiations evolve between the U.S. and its trade partners.
SanMar’s Bigger Commitment: More Than Just Pricing
Beyond pricing, SanMar is actively working with manufacturing and policy partners to reduce long-term tariff exposure. This includes:
- Accelerating moves away from Chinese production
- Participating in trade policy discussions
- Offering consistent communication to keep customers informed
SanMar’s leadership emphasized that these changes, though reactive to global shifts, are being made with long-term customer relationships in mind.
Staying Proactive In A Shifting Trade Landscape
As tariff policies continue to evolve, SanMar is taking a proactive approach to support its customers through the uncertainty. By keeping price increases modest, minimizing exposure to high-tariff regions, and maintaining open communication, SanMar aims to help apparel decorators, promotional product distributors, and branded merchandise professionals weather the storm.
Here's The Full SanMar Statement
April 10, 2025 – Take 2: Tariffs and SanMar – Our response to the latest news
Partners and friends,
“Pivot” was an overused buzzword during the pandemic, and I promised myself I’d never use it again. But given the events of the last several days, I’d say pivot is back. Pivot we must, so pivot we will.
As I’m sure you know by now, the White House has announced a 90-day pause on reciprocal tariffs. During the pause, the tariff amount will be an even 10%. The one exception is China, where the rate has increased to 145%.
Because of this, we’re changing our plan from last week to the following:
- We’ll still raise prices June 1 on all private label and retail brands. This will be a very modest increase—as opposed to the “not insignificant” amount I mentioned previously—to offset the 10% base tariff. We’ll share an exact number as soon as we can.
- Prices on our basics brand Volunteer Knitwear, which is made in Tennessee and not subject to any tariffs, will stay the same.
- After the 90-day pause, we’ll decide if we need a second price increase. I realize this contradicts what I said before, but circumstances have changed. We are hopeful that countries can come to an agreement with the U.S. and additional price increases are not needed.
That said, SanMar is not a spectator. We’re actively engaged with our partners in manufacturing, trade and policy to minimize the impact tariffs have on your business. We entered the year with less than 7% of our products sourced from China, and we’re very close to ceasing all production in China.
We’ll continue to communicate with you as we learn more and as the situation develops. Regardless of what’s happening in the world, our focus is on our long-term partnership and supporting you every way we can.
Thank you for trusting SanMar through the good times and the pivots.
Best,
Jeremy Lott
President & CEO
