Understanding the New U.S. Tariffs: What Hospitality Owners Need to Know

As of May 23, 2025, the United States government has introduced a sweeping new series of tariffs under the administration of President Donald J. Trump. These policy changes are already having a ripple effect across the global economy, raising questions about how they may impact the manufacturing and hospitality industries.

This blog post offers a concise guide for hospitality property owners on the new tariffs. We’ll explain how they work and share essential insights, including timely advice on why now is the ideal time to place orders or make renovations before the 90-day window closes.

What Are Tariffs and How Do They Work?

Tariffs are taxes that governments impose on imported goods. Customs duties are calculated as a percentage of the product’s value and are paid upon entry into a country. A U.S. importer pays the tariff at customs when bringing in goods from abroad, and that cost is often passed on to consumers in the form of higher prices.

Tariffs serve several purposes:

• Protecting domestic industries from foreign competition
• Encouraging domestic manufacturing
• Addressing trade deficits with other countries
• Generating revenue for the government

Tariffs can be specific (a fixed fee per unit) or ad valorem (a percentage of the item’s value). The newly enacted tariffs are primarily ad valorem and reciprocal, aiming to match the tariff levels other nations impose on U.S. goods.

Overview of the 2025 Tariff Policy

In April 2025, President Trump issued an executive order titled “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits.” This order establishes a minimum 10% tariff on imports from countries with persistent trade surpluses and additional tariffs on sectors engaging in unfair trade practices. It introduces a reciprocal tariff system that mirrors tariffs on U.S. exports.

On May 23, 2025, Trump proposed substantial tariffs: a 50% tariff on all goods from the European Union and a 25% tariff on Apple products made outside the United States, effective July 9, 2025, with a 90-day adjustment period for businesses.

The 2025 tariff policy features selective tariff application based on trade relationships, tariffs as negotiation tools, industry-specific decisions, and ongoing monitoring for the impact of inflation. This flexible approach aims to address trade imbalances while encouraging businesses, especially in the hospitality sector, to adapt to potential cost changes promptly.

Countries That Have Come to the Table

The U.S. has clarified that its tariff policy aims to promote balanced trade relationships with partner nations, pressuring those with persistent trade surpluses to negotiate reciprocal agreements. What the tariffs are affecting:

• Vietnam: Affecting cotton fabrics and other textiles.
• Mexico: Further tariffs on cotton, wool, silk fabrics, rugs, amenities, and other textiles.
• South Korea: Tariffs on furniture, cotton, artificial fabrics, other linens, and additional textiles.
• China: Reduction of tariffs on industrial and agricultural goods, including microfiber linens and amenities.
• India: Tariffs on towels, terry products, cotton, polyester fabrics, and other textile exports.
• Brazil: May affect bath and hand towels, cotton, Egyptian cotton products, and other goods.
• European Union: Discussions are underway regarding exemptions for EU goods, textiles, and automotive components.
• Canada: Further tariffs on their hospitality textiles, such as blankets, bedspreads, cotton, and terry fabrics, are possible.

Implications for the Hospitality Industry

Hospitality property owners—especially those managing hotels, vacation rentals, resorts, or boutique stays—should closely monitor how these tariffs affect operating costs, renovations, and guest experiences.

1. Rising Costs of Imported Goods: Many hospitality essentials, including mattresses, TVs, air conditioning units, and furnishings, are sourced from overseas. These goods may become significantly more expensive with increased tariffs within the next few months.
2. Delays and Supply Chain Disruption: Increased regulation and retaliatory measures from foreign nations may cause delays in shipments, creating setbacks for renovations or upgrades. Maintenance timelines may also be affected.
3. Shrinking Margins: Hospitality operators may be forced to raise rates or absorb losses as costs increase, which could impact long-term profitability and guest satisfaction. Conversely, guests may find their vacation stays slightly more expensive as properties adjust to cost increases.

Secure Your Necessities Before Price Hikes

With a likely 90-day adjustment window before the tariffs’ full effects hit inventories, now is the time to:

• Reorder essentials (linens, towels, robes, fixtures, electronics, etc.) before price increases take hold
• Finalize large-scale upgrades or property improvements
• Lock in supplier contracts at pre-tariff rates

Although the tariffs don’t immediately impact every imported item, many vendors and distributors forecast price hikes within 60–90 days to accommodate their tariff costs.

Potential Advantages for the Hospitality Industry

While much of the public discourse around tariffs has focused on rising costs and supply chain complications, there are also several strategic benefits for the hospitality industry that deserve attention. Tariffs may catalyze positive domestic shifts, especially for property owners who are prepared to adapt early and market wisely.

Here are a few of the advantages that could emerge:

• Reshoring of key manufacturing: Higher import taxes may incentivize suppliers of hospitality goods (such as furnishings, linens, and kitchenware) to relocate or expand operations within the U.S., potentially increasing access to domestic products with shorter lead times.

  

• Greater supply chain reliability: Local production can reduce the risk of overseas shipping delays or geopolitical disruptions, leading to steadier inventory planning and fewer canceled upgrades or renovations.
• New revenue for infrastructure: According to the Wharton Budget Model, the tariffs are expected to generate billions in federal revenue. If invested in transportation, tourism, or public safety infrastructure, these improvements could enhance guest experiences in high-traffic hospitality corridors.
• Branding and marketing advantages: Properties that emphasize “Made in America” or “Locally Sourced” themes tend to resonate more with patriotic or sustainability-conscious travelers, who are increasingly seeking out authentic, values-driven hospitality experiences.
• Support for local jobs and economies: As domestic suppliers scale up, hospitality businesses may find new opportunities to partner with nearby manufacturers, artisans, or contractors, fostering deeper community ties and potentially securing better service terms.

While these advantages may not completely address the challenges of higher import costs, they suggest that planners can use this time as an opportunity to enhance their procedures, strengthen brand positioning, and foster guest loyalty.

Key Takeaways for Hospitality Professionals

The recent tariffs are reshaping hospitality operations by increasing costs and potentially disrupting the supply chain over the next 90 days. To mitigate these challenges, property owners should proactively secure purchases and bookings before the July 9th deadline. Some suppliers are shifting to domestic sources, which may help stabilize supply chains. Staying informed and acting early can provide a competitive edge and avoid costly disruptions.

InnStyle’s Here for You

InnStyle offers a range of products, including towels, robes, and other linens. Order soon to restock! If you have any questions about these products, please contact InnStyle to speak with one of our account managers. They will be glad to assist you and provide recommendations. InnStyle can be reached at 267-354-6020, and its website is https://www.innstyle.com/.