New American import duties create uncertainty for UK greeting card publishers
Trump’s 10% tariff on all UK-manufactured goods being exported to the US is causing unwelcome concern, complication and cost implications for British publishers and their American distributor and retailer customers.
“We deal directly with the US,” Ohh Deer co-founder and MD Mark Callaby commented, “so the new tariffs are definitely on our radar.
“I guess we all knew we’d see some crazy decisions being made by this US government, but I can’t see this playing out how Trump expects it will.”
As well as Ohh Deer, other publishers who deal direct with the US include Dean Morris Cards, Redback Cards, Wrendale Design, and Santoro, while American distributors Notes & Queries specialise in importing British publishers cards from leading brands such as The Art File, Bug Art, Caroline Gardner, Ling Design, GBCC, Rosanna Rossi, Paper Salad, Paper Rose, Laura Darrington, Dandelion Stationery, and Paper D’Art. Fellow US distributor Calypso Cards’ list includes Rosie Made A Thing, Heyyy Cards, Art Press, Hammond Gower, Lola Design, Louise Tiler and Megan Claire.
The 47th American president made the decision to impose the import duties ranging from 10% to 54% to balance what he sees as unfair trade deficits, and the lowest rate, which affects the UK, Australia, New Zealand and Brazil among others, came into effect on Saturday, 5 April, just three days after the announcement was made.
The rest hit tomorrow, 9 April, targeting what Donald Trump termed “the worst offenders” including the European Union at 20%, China 54%, Cambodia 49%, Vietnam 46%, Thailand 36%, Taiwan 32%, South Africa 30%, and Japan 24%, while Canada and Mexico have already been hit with 25% tariffs on all goods entering the US from either country, although he has since announced some exemptions and delays for America’s two nearest neighbours, plus there’s a 25% tariff on all “foreign-made automobiles”.
Mark added: “Because we print all our greeting cards here in the UK, we’re somewhat shielded from the worst of it — but we are concerned about how it might affect other product categories, like stationery, where the supply chain is more complex.
“At this stage, it’s still a bit early to tell exactly how it’s going to play out, both for us and for our partners in the US. We’re keeping a close eye on things and doing what we can to stay ahead, but it’s worrying.
“We want to be able to support customers but also can’t risk taking too much of a hit on our own margins.”
At Paper Rose, international sales and licensing director Perlina Pierre-Davis said: “The new US tariffs are an unwelcome development for UK publishers, especially those of us who’ve spent years building meaningful partnerships overseas. They create added pressure on pricing and margins, but we’re approaching the situation constructively.
“We’re already in positive conversations about how best to manage the change and support our partners through it. We’ll work through this together; whether through price adjustments or strategic planning, it’s about staying flexible and keeping communication open. Our industry has a long track record of creativity and resilience, and I believe we’ll adapt, as we always do.”
Wrendale Designs’ founder and co-owner Hannah Dale said the greeting card, gift and home company has spent 10 years building the brand over the Pond, employing its own sales team and developing relationships with stockists across every state.
She commented: “The tariff announcement is likely to deeply impact us in its current form – many products may no longer be viable to sell to our US customers. On the face of it, the news is pretty devastating.
“However, we are still working through the numbers product by product so it’s difficult at this stage to know the full picture. The political landscape also seems to be shifting on almost a daily basis so we aim to be as flexible as possible as it’s highly likely that there will be more change ahead.
“We have a brilliant team and strong relationships with our customers and feel very confident that this will help us to weather the storm in the longer term.”
Having spent 45 years distributing cards and paper products from the UK, Notes & Queries founder and president Alan Harnik, who now runs the business with MD daughter Vanessa, is convinced the company will survive the new challenges but said: “The tariffs will have a profound impact on UK publishers – I liken these new current events to the era of Covid when no one knew what was going to happen and who would or would not survive. Chaos in any form is never good for any economy or business.
“There are also UK publishers that manufacture in other countries like China, especially stationery, journals, bags and wrap, where there is a much higher tariff or in India where there is a 26% tariff now being put in place.
“Distributors like us are trying to ask for help in off-setting some of these tariffs with either free goods or some price concessions. Notes & Queries has been forced to raise its prices primarily on the greeting cards it imports from some of its publishers but not from others where the current wholesale price is already at the top end of wholesale cost. In addition, there are certain products which are manufactured in China which we will no longer be able to bring in thereby reducing our purchases from these UK companies.
“There is also a ripple effect – the US economy is also in a state where retailers are being very cautious as inflation fears which are quite real take effect. What that means is less inventory on the shelf and retailers assessing which products they will keep and which they will drop.
“For Notes & Queries, which has been a leader in importing of design-led paper products, we expect to see a drop in our revenue which means we’ll be buying less from our UK suppliers.
“Having shared all of this troublesome news, Notes & Queries is working with each and every one of our trading partners in the UK and European Union to look at all of our distribution options going forward which include licensing arrangements as well as UK publishers printing here in the US for us.”
Although most of the Swan Mill group of Ling, GBCC and Penny Kennedy’s products are shipped through distributors, much of their output such as boxed cards, stationery, calendars, wrap and gift bags is manufactured in the Far East as it’s no longer viable in the US or UK, so will attract the higher duties, with only single cards and some wrap produced in Britain.
CEO David Byk said: “I don’t think it’s just a China problem, or even a Far East or Asia problem. What he’s doing by creating these tariffs is just creating risk and destroying consumer and economic confidence – and we’re in an industry where people need to feel good and feel that they have a little bit of disposable income.
“As a result, anything that’s creating limitation, whether it’s stock markets plunging or car exports not happening from the UK, is bad for everyone.
“I think globalisation is a good thing. It means that people can trade around the world, and you find the best person for the best job in terms of manufacturing. You can’t solve that by leveraging the most enormous tariffs, assuming that people are going to start manufacturing in a heartbeat in your own country.
“There isn’t a manufacturing fairy that sets these factories up overnight – it will take longer than the lifespan of Trump’s government, and you also can’t assume that Trump isn’t going to change his mind within a very short period of time.
“There is a place for Chinese product, there’s a place for Indian product, there’s a place for Taiwanese product, and there’s a place for British product as well, and you can’t just ban that. There’s also a place for British goods and services, which is where our trade deficit comes from. Globalisation has created an interchange of key strengths and it has worked. Anywhere where you create uncertainty in any economy or business, it’s just bad for everybody.”
And David said the sudden imposition of the tariffs has thrown the Christmas orders into chaos as work should be underway in China but US customers are now rethinking their plans although he’s pleased his business is geographically well spread and not overly committed to America in terms of trading.
As a small publisher, all Dean Morris’ B2C orders to the States come under the current $800 limit for imports as do most of his B2B shipments, so they’re not liable for duty but he said: “I’ve heard the US is closing that loophole for orders coming in from China to try to stop all the cheap imports from Shein and Temu but whether that loophole will be available for duty still for other countries and on tariffs who knows.
“I’m really not sure yet as, with Donald Trump, you never know what’s going to happen. Unpredictability is the new normal.
And, with his customary humour, Dean added: “What with Brexit and these new tariffs the place we’ll be able to sell easily will end up being the island nation of Tuvalu. Essentially Trump is bad for business to the US apart from I’ll probably sell more cards with him on!”
