Tariffs, Free Trade And Small Business Interests Tariffs and free trade agreements top the list of issues PPAI members will be addressing in their meetings on Capitol Hill. Results from a flash survey of members conducted by PPAI Research in February show that more than 85% of PPAI member businesses anticipate cost increases more than 5% due to tariffs, with a third expecting significant financial burdens. LEAD conversations will focus on how tariffs are affecting members, from pricing instability to reduced revenue from absorbing increased costs and decreasing sales. “Knowing that the administration’s intent is to bring manufacturing back to the U.S., part of those considerations is that the U.S. is years away from being prepared to handle that manufacturing,” says Drew Holmgreen, PPAI president and CEO. “We don’t have the facilities or infrastructure.” PPAI members will also express support for longstanding free trade agreements like the African Growth and Opportunity Act and the Generalized System of Preferences. SanMar, PPAI 100’s No. 1 supplier, has been advocating for renewal of AGOA, which is set to expire in September, and PPAI has previously asked Congress to renew the GSP, which promotes economic growth in developing countries and provides benefits for U.S. manufacturers and businesses. Support for the Modern Worker Empowerment Act, a bill to amend existing federal labor laws to establish a clear and predictable test for determining whether a worker is classified as an independent contractor or an employee, is another issue LEAD attendees will address. PPAI has taken a public stance against a proposed federal IC rule in the past, arguing that the promotional products industry was unfairly lumped in with other industries in which workers are commonly misclassified as independent contractors against their wishes. Although never enforced, that rule is still on the books and could jeopardize the livelihoods of thousands of promotional products distributors who prefer to be classified as independent contractors. Promoting The Industry’s Economic Impact Making sure policymakers recognize the impact of the promotional products industry is perhaps the most important aim of the event. At the forefront of LEAD’s agenda is the crucial task of informing legislators about the undeniable effectiveness of promotional products, as well as the challenges faced by the thousands of businesses in our industry, which employs roughly half a million Americans. Of the nearly 40,000 promo companies in the U.S., some 98% are considered small businesses. “After attending PPAI LEAD for the past nine years, I’ve gained a deep appreciation for the power of advocacy in educating lawmakers about the true impact of our promotional products industry,” says Carroll Hanley Goggin, MAS, owner and CFO of DBG Promotions and a GRAC member. “As a small business owner and distributor, this event has given me a unique chance to engage directly with my state lawmakers to help them understand the real Must Read | Legislative Education and Action Day 40 • APRIL 2025 • PPAI
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