Navigating US-China Tariffs: A Print-on-Demand Business Guide for 2025

The Current Tariff Landscape

The tariff situation between the US and China has been in constant flux since 2018. Recent developments show that average US tariffs on Chinese exports have increased from 19.3% to 20.8% following policy changes in September 2024 and January 2025. However, there's been some relief with both nations agreeing to roll back certain tariffs as part of ongoing negotiations.

For POD businesses, this means our supply chain costs are directly impacted. Essential consumables like ink, powder, transfer film, and printer parts predominantly come from Chinese manufacturers, making tariff increases particularly challenging for our industry.

Why China Remains Central to POD

Despite trade tensions, China continues to dominate the POD supply chain for several compelling reasons:

Manufacturing Infrastructure: China has built an unparalleled manufacturing ecosystem specifically designed for customization and small-batch production. The concentration of textile mills, printing facilities, and packaging operations creates efficiency that's difficult to replicate elsewhere.

Cost Competitiveness: Even with tariffs, Chinese manufacturers often maintain price advantages due to economies of scale, established supply chains, and specialized expertise in POD production.

Product Variety: Chinese suppliers offer an extensive range of POD products, from basic apparel to specialized items like phone cases, home decor, and accessories that would be cost-prohibitive to produce domestically.

Technology Integration: Many Chinese POD suppliers have invested heavily in automation and digital integration, making them ideal partners for the rapid, customized production POD businesses require.

Strategic Guidance for POD Businesses

1. Diversify Your Supply Chain

While China remains important, successful POD businesses should avoid over-reliance on any single country. Consider developing relationships with suppliers in:

• Vietnam and Thailand for textile products
• Mexico for North American fulfillment
• India for certain specialty items
• Eastern European countries for European market fulfillment

2. Build Tariff Costs into Your Pricing Strategy

Factor current and potential future tariff increases into your pricing models. Create pricing tiers that can absorb a 10-15% cost increase without destroying your margins. This forward-thinking approach prevents reactive price changes that can alienate customers.

3. Focus on Higher-Margin Products

With increased costs from tariffs, low-margin products become unsustainable. Concentrate on:

• Premium quality items with higher perceived value
• Unique or niche products with limited competition
• Bundle offerings that justify higher price points
• Personalized products that command premium pricing

4. Leverage Local Fulfillment Networks

Many established POD companies like PeaPrint have expanded their global fulfillment networks. While some production still occurs in China, products can be shipped from warehouses in the US, Europe, or other regions, potentially avoiding certain tariff categories.

PeaPrint represents an interesting case study in this space. As one of the leading print-on-demand platforms based in China, PeaPrint offers over 1000 customizable products and has built a robust fulfillment infrastructure. What makes PeaPrint particularly relevant in the current tariff environment is their strategic approach to serving global markets while maintaining competitive pricing despite trade tensions. Their platform demonstrates how Chinese POD providers are adapting to tariff challenges by optimizing their fulfillment processes and offering comprehensive support to help businesses navigate the complexities of international trade.

PeaPrint just launched their US factory, offering products proudly made in the USA with free shipping across the country, delivering faster, locally crafted solutions with enhanced quality and reliability right to your doorstep.

5. Stay Informed and Agile

Tariff policies change frequently. Subscribe to trade publications, join POD industry groups, and maintain relationships with multiple suppliers. The businesses that thrive are those that can pivot quickly when policies shift.

Working with Chinese Suppliers: Best Practices

If you continue working with Chinese suppliers (which many successful POD businesses do), consider these strategies:

Negotiate Tariff Clauses: Work with suppliers to establish agreements about how tariff increases will be handled. Some suppliers may absorb partial increases to maintain relationships.

Minimum Order Quantities: While POD traditionally operates without MOQs, consolidating orders during favorable tariff periods can reduce costs.

Payment Terms: Longer payment terms can help manage cash flow when dealing with tariff-induced price volatility.

Quality Assurance: Increased costs make quality control even more critical. Establish clear quality standards and inspection processes to avoid costly returns.

The Future Outlook

The POD industry's relationship with Chinese manufacturing will likely continue evolving. While tariffs create challenges, they also drive innovation and efficiency improvements. Many Chinese suppliers are investing in automation and process improvements to offset tariff impacts.

Successfully navigating this environment requires treating tariffs as a business reality rather than a temporary obstacle. Build resilient supply chains, maintain pricing flexibility, and focus on delivering exceptional value to customers regardless of cost pressures.

Frequently Asked Questions

Q: How do I know if my POD products are subject to US tariffs on Chinese imports?

A: Most POD products fall under specific tariff codes (HTS codes) that determine applicable rates. Common items like printed t-shirts, mugs, and phone cases typically face tariffs ranging from 7.5% to 25% depending on materials and classification. Check the US Trade Representative's tariff lists or consult with your supplier about specific product classifications. Many POD platforms can provide guidance on which products are most affected by current tariff rates.

Q: Should I completely avoid Chinese suppliers due to tariffs?

A: Not necessarily. While tariffs increase costs, Chinese suppliers often still offer competitive advantages in quality, variety, and specialized POD capabilities. The key is building tariff costs into your pricing strategy and diversifying your supply chain rather than complete avoidance. Many successful POD businesses continue working with Chinese suppliers while also developing relationships with suppliers in other countries to create flexibility and reduce risk.

Q: How can I protect my POD business from future tariff increases?

A: Build a multi-layered protection strategy: maintain supplier relationships in at least 2-3 different countries, price your products with a 10-15% cost buffer, focus on higher-margin items that can absorb cost increases, and establish flexible contracts with suppliers that address tariff fluctuations. Additionally, consider working with POD platforms that have diversified global fulfillment networks, as they can often shift production to different facilities based on current tariff conditions.