The September tariff changes, in plain English. What changed, what it costs, and what to re-quote.

If you priced Q4 programs in August, some of those prices are wrong now. Two things changed in the same week: the tariffs on imported goods, and the cost of borrowing money to buy inventory. Here is each change, what it means, and where the information comes from.

First, the words

A tariff is a tax charged when goods cross the border into the US. "Landed cost" is what an item really costs you after the tariff, freight and fees are added. USMCA is the trade agreement between the US, Mexico and Canada; goods that qualify under it normally cross the border without a tariff. Section 301 and Section 338 are two US laws the government can use to add tariffs. They matter because a tariff under Section 338 applies on top of trade agreements, so USMCA does not cancel it.

Change one: goods from 60 countries now pay more

New tariffs of 10% or 12.5% apply to imports from 60 countries. The government's reason is that those countries do not do enough to stop goods made with forced labor. That is the list on PPAI's tariff tracker, which PPAI's advocacy firm, Thorn Run Partners, keeps up to date.

Why it matters: sixty countries is most of where promo goods are made. And most supplier catalogs do not tell you which country each product comes from. You may not know which of your items just got more expensive.

Change two: a 50% tariff on many Canadian goods, and USMCA does not stop it

Since August 22, many goods made in Canada, including apparel, pay an extra 50% tariff when they enter the US. Earlier Canadian tariffs excused goods that qualified under USMCA. This one does not, because it is written under Section 338, which sits on top of trade agreements. Trade press explains the mechanism, and PPAI's tracker confirms the rate and date.

Canada responded with its own tariffs on hundreds of US products starting September 8. The US then changed its list of affected Canadian products on September 16, adding items like paper, golf carts and furniture.

Why it matters: if you have been pricing Canadian-made blanks as if they cross the border for free, that is no longer true. There is no single rate to look up per product, so you have to ask each supplier where the goods are made and who is paying the tariff.

Change three: from September 29, some tariffs become bans

PPAI reports that on September 29, some tariffs on Canadian goods turn into outright bans on importing them. The banned items are alcohol, dairy and certain motorcycles. Apparel is not on the list. So Canadian blanks will keep arriving; they just cost more. But a ban is a different problem from a tariff. A tariff is a cost you can pass on. A ban means you cannot get the product at all.

Change four: the Fed raised interest rates

On September 16, the Federal Reserve raised its main interest rate by a quarter point, to between 3.75% and 4%. It is the first increase since 2023, and the Fed chair said another is possible before the end of the year. ASI covered the announcement.

Why it matters to a distributor: tariff changes push everyone to buy inventory early. But most distributors buy inventory with borrowed money, on a credit line. That money got more expensive on the same day. If you hold less inventory to save on interest, you risk running out in Q4, exactly when you can least afford it. Nobody has published how much of the rate rise reaches distributor credit lines yet, so ask your bank.

What to do this week

• Pull every open quote and program price list that includes Canadian-made apparel or blanks, or goods from the 60 countries.
• Call each supplier and ask two questions: where is this made, and are you absorbing the tariff or passing it on?
• Write the answers next to the price, so the next person quoting that item does not have to ask again.
• Plan Q4 inventory around September 29, not around normal lead times.
• Ask your bank what the quarter-point rise does to your credit line before you buy early.

The dates, in order