If you’re importing promotional merchandise from China, the costs in 2025 go well beyond what your invoice says. With U.S. tariffs at historically high levels, a $500 order may end up costing nearly twice that—or more. And if you’re thinking of asking your supplier to declare a lower value to avoid fees, you might want to read this first.

U.S. Tariffs on Chinese Goods Have Skyrocketed

As of this year, the U.S. government has implemented massive tariff increases on Chinese imports. Promotional merchandise is among the categories hit hardest, facing:

• 125% Section 301 Tariffs
• Additional 20% tariffs (since March 2025)

That’s a total of 145% in tariffs for some products—and in extreme cases, cumulative charges can rise to 245% depending on classification and other fees.

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What That Means for a $500 Order

Let’s break it down:

Cost Breakdown	Amount
Original order value	$500.00
125% Section 301 Tariff	$625.00
20% Additional Tariff	$100.00
Total tariffs	$725.00
New total cost (excluding shipping)	$1,225.00

Add shipping, handling, and courier processing fees, and your landed cost could exceed $1,300.

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Why Do Some People Still Declare Lower Values?

To sidestep these hefty fees, some buyers or sellers request lower declared values—for example, writing “$30” on a $500 parcel. While this may seem like a harmless workaround, it’s anything but.

Here’s Why It’s a Terrible Idea

1. It’s Illegal

Falsifying the declared value on customs paperwork is considered customs fraud. If caught, you could face:

• Fines
• Seizure of goods
• Criminal charges and prosecution

2. Your Shipment Won’t Be Insured

Insurance only covers the declared value. If your package goes missing or arrives damaged, you’re only entitled to compensation based on that falsely low amount—often just a fraction of what you actually paid.

3. You Could Be Flagged or Blacklisted

U.S. Customs and Border Protection monitors patterns. If your address is linked to fraudulent declarations:

• Future imports could face delays, audits, or seizures
• Your business might get blacklisted by couriers or flagged by customs

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What Should You Do Instead?

• Declare the true value: It’s the legal and ethical choice.
• Budget for tariffs: Factor duties into your product pricing and profit margins.
• Work with compliant suppliers: Make sure they understand and follow customs regulations.
• Explore local or alternate sourcing: With rising import costs, US, EU, UK, or nearshore manufacturers now offer extremely competitive alternatives.
• Use insured, tracked shipping: Especially for high-value orders—don’t take chances with untracked post.

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Final Thoughts

Undervaluing a package may seem like an easy way to save money in the short term, but it can come with serious legal, financial, and operational consequences. In 2025, with import rules tighter than ever, playing by the book isn’t just the smart choice—it’s the only one that protects your business long term.

Have questions about domestic alternatives or need help navigating these changes? Reach out—there are better, safer ways to grow your business.