American importers are facing yet another complication from White House trade policies.
As Reuters reported Monday (June 16), it’s a phenomenon known as “tariff stacking,” which is placing increasing pressure on businesses that source products from countries like China.
The report uses the example of Texas businessman John Hamer, whose company, Rodgers Wade Manufacturing, makes store fixtures for retailers like Ross and Ulta. Many of the goods his company gets come from China. Until recently, that meant Rodgers Wade was paying 70% in tariffs on metal fixtures.
“The media was saying it was 30%, but that was never true,” Hamer said, referring to the tariff rate for China announced last month as part of a truce between President Donald Trump’s administration and Beijing as it negotiated a larger deal.
That’s because Hamer’s 30% tariff was stacked on top of the tariffs already in place, including a levy on Chinese steel products that fluctuates according to the amount of steel used in a fixture.
Hamer added that he is looking for suppliers outside China to avoid the stacked tariffs, and is passing the cost of the duties onto buyers.
“The customers pay the tariff,” said Hamer. “When it comes in, we say, ‘Here’s the tariff bill.’”
That’s in keeping with the PYMNTS Intelligence report, “Tariffs and Business Uncertainty: The Current State of Play,” which showed 42% of goods firms and 21% of services firms planning to increase prices in reaction to the tariffs.
Writing about the tariff situation last week, PYMNTS noted that the debate surrounding imports and exports underscores the importance of smooth fund flows across supply chains.
“Banks and FinTechs are in the middle of it all, enabling commercial payments that cross borders,” that report said.
“Foreign exchange (FX) rates and transparency into the payments themselves — in terms of tracking them and when they settle — have long been points of friction. Trade credit and digital payments have become essential to the functioning of supply chains.”
A PYMNTS Intelligence and Visa report, “2024-2025 Growth Corporates Working Capital Index,” found that 70% of users of financing reported improved buyer-supplier relationships. Nearly 1,300 chief financial officers and treasurers said they value (and want) banking products that integrate with their operations, such as corporate cards, to smooth those trade-related cross-border pain points.
“They also expect bankers to offer digital-first, friction-free services with faster approval processes aligned with their strategic growth agenda,” the report said.
