The holidays are coming fast, and promotional products are top of mind for companies eager to show appreciation, reward teams, and boost brand visibility. But 2025 brings a challenge buyers can’t ignore: tariffs and global sourcing shifts are reshaping the cost of promo products.

This year, timing is everything. Waiting too long could mean paying more or missing out on the most in-demand items.

The Top Categories for Holiday 2025
Holiday budgets are flowing into a few standout categories:

• Wearables – classic apparel and accessories.
• Drinkware – reusable mugs, bottles, and tumblers.
• Bags & Totes – versatile, eco-friendly, and reusable.
• Tech Accessories – power banks, earbuds, and smart gadgets.

These categories continue to perform strongly, even in a tariff-pressured economy, because they balance utility, visibility, and perceived value.

Tariffs Are Driving Up Prices
According to Counselor’s 2025 State of the Industry report, tariffs are hitting the promotional market hard:

• 65% of suppliers raised prices in Q2 2025 directly due to tariff pressures.
• Hard goods (think drinkware, bags, and tech items) were particularly affected, with many companies adjusting prices as new inventory arrived.

What it means: Products purchased now, from existing stock, are likely priced lower than shipments arriving later this fall.

Sourcing Shifts: Beyond China
For decades, China has been the dominant source of promo products. Tariffs are accelerating a diversification trend:

• Suppliers are sourcing more from other countries like Vietnam, India, and Mexico.
• Made in USA products are also gaining traction—fueled by tariff avoidance and major events that spur patriotic buying.

What it means: Buyers may see more product variety and potentially more stability in shipping, but prices will still reflect the global sourcing reset.

Wearables vs. Non-Wearables: A Shift in Buying
Wearables still dominate the promo market, accounting for about 45% of total sales. But there’s been a twist:

• Non-wearables saw a Q2 2025 bump as savvy buyers stocked up before tariff-driven cost increases hit many hard-good categories.
• This created pressure on inventory for categories like drinkware, writing instruments, and branded tech.

What it means: If your brand wants these items for year-end gifting, the window to lock them in is shrinking.

Do Eco-Friendly Products Still Matter?
Yes, sustainability continues to play a role, even as tariffs pressure budgets:

• Eco-lines remain resilient, though growth slowed in 2025 compared to previous years.
• A significant portion of buyers still prefer sustainable options, even if costs rise slightly.

What it means: Holiday promo buyers should expect strong interest in recycled, reusable, and responsibly sourced products, but ordering early ensures availability and better pricing.

The Bottom Line: Order Sooner, Not Later
If your brand is planning a holiday gifting campaign, tariffs make early ordering essential.

• Act now to secure current inventory purchased before tariff hikes.
• Prioritize non-wearables and high-demand categories before stock tightens.
• Explore Made in USA or alternative sourcing for tariff-resistant options.
• Balance sustainability and cost by choosing eco-products now, before limited runs sell out.

ll data is based on the 2025 Counselor State of the Industry report by the Advertising Specialty Institute (ASI). For full charts, detailed methodology, and additional insights, see ASI’s original publication: Counselor – ASI Central.

Ready to Beat the Tariff Crunch?
Don’t let tariffs derail your holiday campaign. Savvy buyers will act early, ensuring they get the right products, at the right price, in time for year-end gifting.

Start your holiday order today before tariffs drive prices higher and inventories shrink. Fill out our quick form and let us know the promo items you are interested in we’ll provide tailored suggestions.

Curious about what’s possible? Let’s talk—consultations are always free! Just fill out the form below or give us a call at 937.353.2299.