Tariff FAQ
OUR APPROACH TO TARIFFS
WHY IS A SURCHARGE BEING ADDED?
In 2025, we have all faced tremendous challenges with the rising cost of goods caused by new taxes (tariffs) imposed on imports into the United States. These taxes, ranging from 10% to as high as 150% on imported goods have significantly increasing our costs. Rather than applying varying increases to each product, we’ve chosen a flat 7.5 % surcharge to simplify the process and remain transparent with our customers. This amount does not fully offset the tariffs, but it reflects a balanced, manageable solution.
In May, we rolled out a 4.75% surcharge on new orders in the hopes that the tariff landscape would change for the better. Unfortunately, things have moved in the other direction and additional tariffs have been imposed. We have been very reluctant to make any adjustments, but given these significant changes, we have updated our surcharge to 7.5% as of August 26.
WHY APPLY THE SURCHARGE TO ALL ORDERS?
The international tariff landscape changes daily, and product-by-product pricing would be difficult to implement fairly. Applying a consistent surcharge allows us to:
- Maintain predictable pricing
- Reduce order complexity
- Seamlessly return to standard pricing when tariffs are lifted
WHEN DOES THE 7.5% SURCHARGE TAKE EFFECT?
Orders placed on or after August 26 will include the 7.5% surcharge, regardless of ship date.
HOW IS THE SURCHARGE CALCULATED?
The 7.5% surcharge is applied only to the product cost, not shipping.
Here’s an example:
- Product Total: $1,540
- Freight (est. 12%): $184.80
- Tariff Surcharge (7.5% of $1,540): $115.50
- Total Invoice: $1840.30
WILL MY CURRENT CONFIRMED ORDERS BE AFFECTED? ARE HOLIDAY ORDERS INCLUDED?
Surcharges apply to all orders confirmed May 12 or later. Order placed prior to May 12 will ship without a surcharge regardless of the ship date.
Orders confirmed before May 12 = No Surcharge
Orders confirmed May 12 to August 25 = 4.75% Surcharge
Orders confirmed on or after August 26 = 7.5% Surcharge
ARE HOLIDAY ORDERS INCLUDED?
Yes. All orders placed on or after August 26—including Fall and Holiday—will incur the tariff surcharge.
IS TWO'S COMPANY ABSORBING ANY OF THE TARIFF?
Absolutely. The surcharge does not cover the full cost of the new tariffs. We are absorbing a significant portion of these expenses and taking additional cost-saving measures internally to minimize the impact on our customers.
WHERE ARE YOUR PRODUCTS SOURCED FROM?
We source primarily from India and China, with additional production in the UK, Philippines, Thailand, Taiwan, Indonesia, Bangladesh, Vietnam, and Hong Kong.
We understand this is a challenging time.
Many of you have shared concerns about rising costs and slower consumer spending. We hear you, and we are committed to doing everything we can to support your business.
Despite these headwinds, we are continuing to ship Christmas merchandise—even at reduced margins—because we believe in the strength of our partnerships and the long-term success of your business.
If you have questions, please reach out to our Customer Service Team and/or your Territory Manager. We’re here to help.