May 21, 2025

Dear Valued Customer,

Thank you for your continued partnership and for the trust you’ve placed in us. We want to provide an important update regarding the evolving U.S. tariff tax environment and how it will impact your orders.

As you may be aware, the US recently announced a 90-day pause on the highest tariff rates that were announced in April. The current set of tariffs ranges from 10-30%, depending on the country of origin. It is important to note, however, that these rates layer on top of existing tariffs that were in place from previous years, so the total tariff for certain products is higher still. Additionally, this is only a temporary reprieve, and the goods must arrive within the 90 days.

While we appreciate the clarity of the 90 days, there remains significant uncertainty. If the US does not agree to trade deals or does not announce an extension, rates will automatically climb back to the 30-54% range from most countries.

Furthermore, the turmoil of the past month has resulted in major issues along the supply chain. Factories have largely been shut down for the month and container ships have been empty or cancelled. That entire backlog will now come to a head over the next two months as everyone rushes to get goods in before the all-important holiday shopping season.

These logistical challenges, in combination with the tariffs (even at a lower level), have added significant costs to our product line. While we’ve done our best to absorb and mitigate many of these costs, increases are unavoidable, and a 10% surcharge will be in effect on existing and new orders shipping this year.

Please rest assured that we are doing everything we can to get your product here as quickly and as efficiently as possible and are confident we will have products available in a timely manner.

Additionally, we continue to work on mitigation strategies for the current environment and the future, including:

• Exploring alternative sourcing and manufacturing partners outside of high-tariff regions.
• Developing new product formats and supply chain strategies to reduce long-term exposure.
• Working with our factory partners to offset cost increases where possible.

Below is a summary of what to expect on your current orders with C&F:
• Winter Early Buy Program Orders: While we are all disappointed about adding the surcharge, please realize that we have held your original product pricing, even for new product coming in that is incurring higher tariffs and freight costs. We will honor any discounts earned on this program and can ship available merchandise now. You are getting our best pricing thanks to your early commitments.
• Existing Pre-orders shipping before December 2025: We have held your product pricing on these orders, even for the product we are still bringing in and on which we are incurring the tariff. We can ship available merchandise now. These orders will incur a 10% surcharge.
• New Orders: All orders will incur a 10% surcharge.
• Spring ASAP (Steal & Deals) Special Orders: These orders will NOT incur the 10% surcharge as long as the program qualifications are met ($500 in discounted product included, order shipping ASAP). We will honor any discounts earned on this program.

Important Update for Spring 2026 Pre-Buy Orders:
As tariff rates currently stand, and assuming no further increases, we do not intend to apply a surcharge to Spring 2026 pre-buy orders scheduled to ship after December 2025. We hope this offers some pricing stability for your planning and budgeting needs. We are prioritizing the fulfillment of orders for customers who choose to proceed with their orders under the current conditions. Please note that we cannot guarantee inventory availability on any canceled or delayed orders due to the tightening global supply chain.

We understand that surcharges and shipping delays are never ideal, and we’re committed to maintaining transparency and working alongside you to minimize disruption. Please do not hesitate to reach out with any questions or to discuss a specific order.

Thank you for your continued support.

Warm regards,

The C&F Enterprises Team
sales@cnfei.com
888-889-9868