Lecture on Tariffs and Business Impact

Introduction

• Presenters: Martin and Liz
• Audience: Printify and Printful partners
• Topic: Proposed tariffs by the US government on imports from China, Mexico, and Canada, and retaliatory tariffs by Canada.
• Purpose: Informational; not professional advice.

Understanding Tariffs

• Definition: A tariff is a tax on imported goods, making them more expensive to reduce foreign competition and boost domestic industries.
• Impact on Pricing: Additional costs often passed to consumers, affecting pricing strategies and competitiveness.

Current Tariff Situation

• US Tariffs:
  • 25% tariff proposed on imports from Mexico and Canada.
  • 20% tariff in place on Chinese imports.
  • Implementation on Mexican and Canadian goods has been paused.
• Dom Minimus Exemption: Allows low-value shipments under $800 to enter the US duty-free, still in effect.

Business Impact

• Current Situation: No immediate price increases for Printify and Printful partners.
• Actions Taken:
  • Exploring alternative sourcing.
  • Negotiating better terms.
  • Absorbing costs where possible.
  • Regular updates to partners.

FAQs

• Effect on Prices: No current increases, but tariffs could affect prices based on product nature and origin.
• Adjusting Product Pricing: Not necessary now; partners will be informed if adjustments become needed.
• Fulfillment and Shipping: Tariffs mainly affect fulfillment costs; shipping costs might be influenced by changes in regulations.
• Absorbing Tariff Costs: Printful/Printify are absorbing costs where possible.
• Notification of Price Changes: Will provide notice before changes occur; aiming to minimize changes.
• Application of Tariffs: Integrated into pricing; no separate charge.
• Affected Products: Apparel most likely affected, situationally fluid for other categories.

Global Impact

• On Sellers: Could affect those selling to the US and lead to retaliatory tariffs from affected countries.
• Local Fulfillment: Products made and sold in the same country are exempt from import tariffs.

Strategies for Partners

• Pricing Adjustments: Optimize marketing expenses, enhance SEO, and use value-based pricing.
• Shipping Times: No anticipated delays due to tariffs.

Staying Informed

• Regular Updates: Via email and dashboard updates.
• Media Monitoring: Advisable to watch news for changes.

Conclusion

• Action Items: Stay updated, continue selling, reach out with questions.
• Merger Advantage: Printify and Printful merger strengthens support capabilities.
• Encouragement: Embrace challenges as opportunities for growth.