Navigating New Tariffs: What You Need to Know
The recent implementation of tariffs by the U.S. on imports from China, Mexico, and Canada is set to have significant effects on the lawn and garden industry. As a leading distributor in this space, Arett Sales is here to help retailers understand these changes and develop strategies to navigate potential disruptions while reinforcing the many opportunities that still exist. Below, we outline the key impacts of the tariffs and actionable steps businesses can take to stay competitive and thrive in 2025.
Latest Tariff Developments and Impact on Arett Sales
We want to keep you informed about recent tariff developments that may impact some of our products. We are actively monitoring the situation and working to identify which vendors will be affected. Additionally, we are in discussions with vendors to understand how they plan to navigate these changes. Here is the current timeline of events relating to the most recent round of tariffs:
- February 1, 2025: The U.S. announced a 25% tariff on imports from Canada and Mexico, with Canadian energy resources facing a lower 10% tariff. Additionally, a 10% tariff was imposed on imports from China.
- February 3, 2025: The U.S. agreed to delay the tariffs on Canada and Mexico for 30 days to allow for further negotiations.
- February 10, 2025: A 25% tariff on all steel and aluminum imports was announced, effective March 12, 2025, with no exceptions for allied countries.
The good news? The large majority of our spring import items will not be subject to these tariffs as they have already been received into our warehouse or were loaded onto a vessel before the February 1st deadline.
We are continuously analyzing which items will be impacted and will provide updates as more information becomes available.
Looking ahead, this should have minimal impact on 2024 Spring sales, which remains our customer’s most immediate concern. Spring is on track to be strong! We are hopeful that negotiations between the U.S. government and trade officials from Canada, Mexico and China, will lead to positive resolutions, and we will keep you updated as concrete decisions are made.
How Arett Sales Is Working Harder Than Ever for You
We are committed to being your distributor of choice and working harder than ever to support you during these changes. Here’s what we’re doing to mitigate the impact and create new opportunities for retailers:
- Expanding Closeout Programs – Consumers are always looking for great deals, and we’ve expanded our closeout programs to provide more opportunities for savings.
- Reinforcing Our ‘Made in America’ Programs – Many of our domestic suppliers are stepping up production, and we continue to invest in American-made products.
- Monitoring Changes Closely – Our team is actively tracking all trade policy updates to provide the latest insights and guidance.
- Diversifying Suppliers – We will continue to source products from suppliers in regions unaffected by tariffs, ensuring that you continue to receive high-quality products at competitive prices.
- Supplier Partnerships – We’re in constant communication with vendors to negotiate pricing, find alternative sourcing, and mitigate any potential disruptions.
- Internal Efficiency Projects – We are aggressively scrubbing indirect costs and streamlining operations to maintain pricing as much as possible.
How Lawn & Garden Businesses Can Prepare & Thrive
Here are key steps you can take to stay ahead of these changes, reduce costs, and continue growing in 2025:
- Diversify Supply Chains
- Explore alternative suppliers from regions unaffected by tariffs (e.g., India, Vietnam)
- Increase domestic procurement by working with U.S.-based manufacturers and nurseries.
- Adjust Product Mix and Pricing Strategies
- Shift inventory toward higher-margin products that can absorb increased costs.
- Introduce cost-effective alternatives to tariff-impacted products.
- Implement gradual price adjustments rather than sudden hikes to maintain customer loyalty.
- Improve Inventory Management
- Review and adjust inventory levels on certain categories before any potential price shifts take effect.
- Monitor consumer demand trends to adjust inventory accordingly.
- Take advantage of Arett’s Closeout Programs to lock in great deals for your customers.
- Strengthen Retail & Marketing Strategies
- Educate consumers on the value and durability of products to justify potential price increases.
- Offer bundled promotions to increase perceived value.
- Highlight ‘Made in America’ products in your promotions to appeal to customers looking for domestic alternatives.
- Leverage Technology and Automation
- Implement inventory tracking software to optimize stock levels.
- Expand e-commerce platforms to reach broader audiences and offset potential in-store revenue declines.
- Stay Informed & Work Together
- Stay up-to-date on evolving trade policies and tariff exemptions.
- Lean on your personal relationships with suppliers and distributors.
A Positive Outlook for 2025
While tariffs bring challenges, they also bring opportunities for retailers to adapt, innovate, and grow.At Arett Sales, we help our customers succeed by offering smart sourcing, strong supplier relationships, competitive everyday pricing, and ongoing promotions.
Let’s work together and make this an amazing Spring season! For more industry updates and solutions, reach out to your Arett Sales representative today.