Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 130

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 130
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 to a combined rate of 20%, subject to formal
executive orders or other actions. For low-value items of Chinese or Hong Kong origin valued at or below $800 and moving via the international
postal stream, duty-free treatment ended May 2, 2025. Since May 14, 2025, such postal shipments have generally been subject to either
a 54% ad valorem duty or a $100 per-item postal fee. Separately, the United States eliminated duty-free de minimis treatment for imports
from all other countries effective August 29, 2025. In addition, the United States has introduced and adjusted reciprocal tariff rates
on imports from numerous trading partners. Since August 7, 2025, additional “reciprocal” tariff rates applicable to most goods
from covered countries vary by country between approximately 10% and 41%, with many commonly in the 15%-40% range after later adjustments
and exemptions. These additional country-specific tariffs were effected alongside a general increase in separate U.S. tariffs against
imports based on product type or sector, as well as, in certain cases, country of origin, in some cases modified by exemptions or other
adjustments. In addition, several tariffs (including the reciprocal and fentanyl measures against Chinese imports noted above) are subject
to ongoing legal challenges, while collections have continued pending further appeals.

29

We have historically imported many of the goods
or components used in our promotional products business from China in particular and to some extent from other countries. As a result,
we have had to increase prices for certain products, and may be required to raise those prices further, which may result in the loss of
customers. We have also attempted to shift away from Chinese suppliers in particular, and other foreign suppliers in general, and may
seek to increase this shift due to U.S. tariffs or other aspects of U.S. trade policy, in an effort to reduce the effect of tariff increases
on our product prices. However, due to the limited availability of competitive pricing from suppliers whose goods are not currently subject
to tariffs or that are subject to relatively lower tariffs, and the possibility that some of the current or planned additional U.S. tariffs
may increase, decrease, or become subject to exceptions or suspensions, with little or no prior notice, our ability to cost-effectively
mitigate some of the effects of current and future scheduled U.S. tariffs may be significantly limited. These trends and uncertainties
may result in additional costs