tion: This article is about the laundry industry's response to the U.S. tariff increases.

The Biden administration has begun imposing a 10% tariff on goods imported from foreign countries into the U.S., beginning earlier in April.

This follows several days of U.S. tariff increases and pauses.

(Photo: © sinenkiy/Depositphotos)

There are exceptions to this on some products and countries. Imports from China are taking the full force of increases with the possibility of a cumulative 145% from specific product and reciprocal tariffs.

The laundry industry’s response to the tariff increases has generally been to wait and see.

A few suppliers have enacted temporary surcharges to offset price increases. Since the supply-chain issues related to COVID, many laundry operators have increased stock of necessary goods and supplies to last for several months and are monitoring the situation to come up with appropriate strategies to keep goods and equipment on hand at the best prices.

The upheaval in U.S. tariffs on imports has been front and center since day one of the new administration.

TRUMP’S AMERICA FIRST TRADE POLICY

On Jan. 20, President Donald Trump issued an executive order on an America First Trade Policy. The order called for many different studies (with an April 1 deadline) on national security and trade policy issues, and a review of the United States-Mexico-Canada Agreement (USMCA).

During an April 2 address, President Trump declared the day to be “Liberation Day,” unveiling a two-tier tariff structure. This involved a 10% tariff on imports from all countries (except Canada and Mexico) and “reciprocal” tariffs on specific countries engaged in what the administration termed “unfair trade practices.”

The 10% tariff went into effect on April 5, followed by the reciprocal tariffs on April 9.

Since April 2, there has been a flurry of activity on the trade front to decipher and counter these new tariffs. Later in the day on April 9, after many countries sought to make deals, reciprocal tariffs were paused for 90 days, leaving the 10% tariff in place.

The result? A lot of confusion and concern about the cost of imported goods and the effect it will have on future business.

So, what’s going on with U.S. tariffs now, and what might happen later this year?

This article, presenting broad strokes about U.S. tariff policy since 2025 began, comes from two webinar updates.

The National Association of Wholesaler-Distributors (NAW) presented its government update, “Navigating Tariffs: Strategic Insights for Wholesaler-Distributors,” on April 8.

The main presenters were Alex Hendrie, NAW’s vice president of government affairs, and Eddy Hayes, a principal partner at Leake Andersson in New Orleans. He leads the firm’s international trade and customs practice.

Then on April 16, the National Federation of Independent Business (NFIB) presented “Tariffs 101 and the Latest Updates,” led by Holly Wade, executive director of the NFIB Research Center.

(Note: This article is for informational purposes only. For advice about tariffs regarding your specific business, contact your attorney or financial adviser of choice.)

PURPOSE OF NEW TARIFF POLICY

“There are a lot of conflicting messages and confusion from Trump and his advisers about what the goal of ‘Liberation Day’ was,” says Hendrie. “Was it to impose tariffs on foreign countries who are taking advantage of us? Or is it doing that to then get better trade, trade deals and trade conditions.

“A lot of the administration officials have noted anywhere from 50 to 70 countries have already approached the U.S. over a deal for lower tariffs. So, as much as there might be hesitancy about Trump’s approach, I think they would make the case that this is working.”

Hayes says that, when looking at the U.S. tariff structure, the foundation of the trade system for the past 80 years is a bedrock principle known as the most favored nation rate. That’s been in place since the general agreement on tariffs and trade in 1947. The MFN rate is the highest tariff that a country can charge for a particular good.

“For example, if I’m a U.S. business and I’m importing bicycles from Belgium, if the government agrees to an MFN rate of 10% for those imported bicycles, then that’s the rate I have to charge to bicycles from Panama, from China, from every country that’s in the WTO (World Trade Organization) system,” he says.

“The goal of an MFN rate is to provide security and predictability and non-discrimination in trade. So, whatever the best deal that I give, whatever the lowest rate is, I have to apply that to the same ‘like’ product from every WTO member.

“That’s been