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.
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)
__________________________________________________________________________________________________
Tariff Timeline:
IS Tariff Update: Start Date: 4/30/26 - current
Our approach to tariffs this past year has been to maintain a tariff surcharge to allow for easy adjustment as tariff levels changed; however, we received substantial feedback asking us to simplify our pricing by removing the tariff surcharge and the need for back-end price rules. Therefore, we are removing the tariff surcharge and implementing a base price increase in the same amount, effective 4/30/2026. Importantly, your net costs will not change as a result of this pricing update. However, effective April 30, 2026, the tariff surcharge will be fully incorporated into base pricing. As a result, the use of back-end pricing rules to apply the surcharge will no longer be required.
We are making this update based on our assessment that the tariff environment has stabilized, due to the following factors:
1. The duty-free treatment for orders under $800 (the de minimis exemption) was eliminated last year. Unlike the tariffs themselves, this change has not been challenged in the courts and will not be reinstated.
2. The Supreme Court has invalidated IEEPA tariffs on China, but the administration has re-established tariffs at 10% with the stated intent of returning to prior levels in the next few months.
3. The administration has made clear that they do not intend to accept tariff limitations. Therefore, we expect tariffs to remain consistent, regardless of the statute claimed.
Our current tariff surcharge accounts for the impact of the elimination of the de minimis exemption last year and the re-established tariffs at 10%; hence the price increase in the same amount. We are not trying to make money on this and have strived for transparency throughout this process, and we will continue to do so as the situation evolves.
We also want to reiterate that we did not implement any base price increase last year and will not do so this year. If there is another substantial reduction in tariffs, we will re-evaluate our pricing accordingly.
Again, we believe that this new approach will simplify our ordering process for you, our most valuable customers.
If you have questions about your account, please reach out to us directly. If you have questions about how to remove the pricing rules in Touchpoint, please reach out to your ROM.
Thank you for your support during the uncertainty of the past year. We hope that this change makes your process simpler going forward
PD Tariff Update: Start Date: 6/2/26 - current
Our current tariff surcharge accounts for today’s tariff environment, so we are simply moving the surcharge into the base pricing. We have strived for transparency throughout this process, and we will continue to do so as the situation evolves. If there is a substantial reduction in tariffs in the future, we will reevaluate our pricing accordingly.
We also want to reiterate that we did not implement any base price increase last year and will not do so this year.
We hope that this new approach will simplify pricing and make ordering our products easier for you. If you have questions about your account, please reach out to us directly.
Thank you for your support during the uncertainty of the past year.
Update: Start Date: 2/17/2026 - End Date: if IS 4/30 , if PD 6/2
15% surcharge from China.
Update: 11/10/2025 - 2/16/26
View article
10% Reduction in tariff from China. Tariff surcharge has not changed for our customers.
Update: 5/12/25 - 11/09/2025
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
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