General Tariff Information- FAQ Tariff

Modified on Thu, 17 Jul at 9:58 AM

Talking Points:

Re: Tariff and De Minimis

The U.S. government enacted tariff changes that significantly impact Pro Design. While the addition of tariffs on products from China are notable, the bigger challenge for us is the removal of the de minimis exemption. This exemption has protected us from tariffs in recent years, enabling us to keep our prices low. Currently, de minimis is still in place.

Re: Product from China

We've often been asked about moving production out of China, but our business model is built around assembling shades where raw materials and fabrics are processed. This approach enables us to offer the extensive pattern selection that keeps you ahead of the market, and China remains the primary source for these materials.

>> More on Why are our Natural Shades made in China

What is de minimis?

De minimis is an exemption that was put in place to allow low-value shipments to clear customs without a formal entry process. This means that shipments with a value under $800 would just get cleared without any duties or tariffs charged. The elimination of de minimis means that we need to file a formal entry for every shipment that comes in and every shipment therefore gets charged duties and tariffs.

Tariffs do not apply for:

- SAMPLE BOOKS

- STOCK HAND SAMPLES

- HAND SAMPLE BAGS

- ALL PARTS SHIPPING FROM OHIO (MOTORIZED AND NON-MOTORIZED, INCLUDING HUBS)

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Tariff Timeline:

Update: 5/12/25 - current

As of 5/12 the 50% tariff surcharge will be replaced with a 20% tariff surcharge on all products except DSS. The 6% surcharge for dual sheer shades remains intact. All unshipped orders have been updated and revised confirmations have been sent to customers.

All Products Except Dual Sheer Shade Example

- As our products are shipping from China, they will incur a 20% tariff surcharge. On your invoice, it will appear as a separate line item.

- EXAMPLE:

You are ordering a motorized woven wood shade that has a $1,000 retail price. First multiply the $1,000 retail shade by your Discount Factor/Multiplier. Then multiply by 1.2 (this is the 20% tariff surcharge). This will be your final cost.

$1000 * Discount Factor/Multiplier = $X1
+ $3 Handling Fee = $X2

$X2 * 1.20 (20% Tariff Surcharge) = $X3 (Your Final Cost)

To add to Touchpoint, program a rule to add 6% to the retail price at the vendor level. This will cover your out of pocket cost of the tariff surcharge and allow you to pass it on to your customer.

Dual Sheer Shade Example

- Our Dual Sheer Shade products are imported from Korea, and we have passed on a 6% tariff surcharge to customers to recover some of the cost. On your invoice, this will appear as a separate line item.

-EXAMPLE:
You are ordering motorized dual sheer shades that have a $1,000 retail price. First, multiply the $1,000 by your discount factor. Finally, multiply that number by 1.06 (the tariff surcharge). This will be your final cost.

$1,000 * Discount Factor/Multiplier = $X1

+ $3 Handling Fee = $X2
$X2 * 1.06 (6% Tariff Surcharge) = $X3 (Your Final Cost)

To add to Touchpoint, program a rule to add 1.8% to the retail price at the vendor level. This will cover your out of pocket cost of the tariff surcharge and allow you to pass it on to your customer.

Update: 4/11/25

Beginning April 14, 2025 the 20% tariff surcharge will be replaced with a 50% tariff surcharge on all products except DSS. The 6% surcharge for dual sheer shades remains intact.

Tariff Surcharge Summary for Budget Blinds

This 50% surcharge replaces the 20% surcharge currently in effect. This surcharge is based on the product cost to the franchisee, not MSRP.
The surcharge will apply to all orders placed on or after April 14th.
This does not affect Canadian franchises.
The 6% surcharge on dual sheer shades for US franchises is unchanged.
If you already applied a 6% retail price rule in Touchpoint to account for the original 20% surcharge, you can cover the $ cost of this 50% surcharge by making this a 15% price rule.

Update: 4/3/25

Beginning 4/7 all products will have a tariff surcharge applied. These replace the previously announced surcharges.

All products from China: 20 percent

Dual Sheers from Korea: 6 percent

Our effective duty and tariff rate from China on bamboo shades is now 85% and on fabric shades it is 75% and we will be paying that on all orders, as de minimis is going away.

Update: 3/13/25

On February 9th, we advised that we were holding all tariff or other price increases in response to the ever-changing situation with tariffs and de minimis exemptions.

Since that date, an extra 10% tariff was imposed on our imports from China at the beginning of March, but we decided to wait and assess the impact of all these changes to our import costs. We are now seeing that impact and unfortunately, we are not able to bear these increased costs without adjusting our prices.

This will be a line-item surcharge and will appear as such on all quotes and orders. Please note that this only affects shipments from China into the US, so our Dual Sheer Shade products and Canadian customers will not be surcharged.

4% for internet customers starting 3/17 (Still talking with GCC)
6% for all other PD customers starting 3/24 (UWC and ITA will be 4/1)
6% for Budget Blinds starting 4/1

Update: 2/10/25

With the announcement de minimis has been reinstated the 10% tariff surcharge will not be implemented. Given the uncertainty and confusion, we have made the decision to absorb the extra tariff cost for the immediate future and let the dust settle. This means the increase on 3/18 will also be put on pause, meaning we are holding all price increases at this time.

Update: 2/6/25

We are in the process of implementing a 10% tariff surcharge to all customers, which will take effect in the coming days. This applies to all products except DSS and will appear as a line-item surcharge on orders. The surcharge will replace the previously planned price increase for 3/18, meaning there will no longer be a price increase on that date if customers inquire.

Network and standard customers are moving on Monday 2/10
Internet customers are currently moving
Wholesale will move on varying days, depending on acceptance as they need to notify their dealer base