The Billion Dollar Problem: Can the FIFA World Cup 2026 Outrun the Tariff Hike?

Written by Ramzy Merrach
Product Architect, Head of Innovation

As excitement builds around the FIFA World Cup 2026, so does concern among marketers, manufacturers, and retailers over a sharp rise in U.S. tariffs on imported goods, many of which are essential for promotional campaigns tied to the tournament.

With millions of promotional products, from branded apparel to collectible merchandise , expected to flood the market, companies now face a critical challenge: how to maintain profit margins and product quality under the weight of increased production costs. 

This dual pressure is reshaping the very paradigm of product development.

The Tariff Tension: What's Changing?

In early 2025, the U.S. government imposed dramatic tariff hikes on Chinese imports, with rates reportedly soaring as high as 145% on some consumer goods, including textiles, plastics, and apparel components. These increases follow the removal of the “de minimis” exemption, which previously allowed small shipments under $800 to enter tariff-free, a common route for e-commerce sellers and promotional product distributors.

However, in a recent development, the U.S. and China have agreed to a temporary reduction in tariffs. Effective for 90 days, U.S. tariffs on Chinese goods have been reduced to 51%, and Chinese tariffs on U.S. imports have been lowered to 10%. 

This easing of trade tensions offers a window of opportunity for brands planning World Cup-related merchandise.

The 2026 tournament, co-hosted by the U.S., Canada, and Mexico, is expected to draw over 5 million in-person attendees and reach a global broadcast audience of more than 5 billion, according to FIFA’s official projections. For sponsors, merchandisers, and event-based marketers, the opportunity is immense. 

During the 2019–2022 cycle, FIFA generated approximately $1.66 billion from marketing rights, including licensing and retail programs, a substantial increase from previous years. This surge underscores the growing commercial power of branded giveaways, collectible memorabilia, fan gear, and team-specific merchandise.

But tapping into this opportunity in 2026 will look different than it did just a few years ago. With tariffs rising and global supply chains under pressure, brands must adapt. That’s why a new product development paradigm is emerging, one built on flexibility, regional production, and smarter design.

A New Product Development Paradigm

As tariffs soar and World Cup 2026 demand surges, brands are rethinking how they design and deliver merchandise. Many companies are exploring nearshoring in Latin America or even reshoring to the U.S. to reduce lead times and regulatory headaches.

• Mexico and Central America provide competitive labor rates, quicker shipping routes, and trade advantages under USMCA.
  
  
  

• U.S. manufacturing, while more expensive, offers supply chain stability and fewer legal risks — particularly appealing for licensed FIFA World Cup merchandise that must meet strict compliance standards.

But what’s emerging is a smarter, more resilient model, not anti-China, but China-plus, with a focus on agility, sustainability, and regional diversity.

Indeed, China remains essential due to:

• Unmatched manufacturing eco-system.

  • Entire cities are optimized around specific product categories, from textiles in Guangdong to electronics in Shenzhen. This clustering allows for unparalleled efficiency, cost control, and speed.
    
    
    

• Mature prototyping infrastructure

  • China’s prototyping capabilities are second to none. Factories can move from concept to functional sample in days, not weeks, enabling brands to iterate quickly and respond to market trends — a crucial edge in a high-stakes, time-sensitive event like the World Cup.
    
    
    

• Engineering Talent and Automation Readiness

  • Beyond low-cost labor, China leads in smart manufacturing, with high adoption of robotics, AI-driven quality control, and digital factory systems that enable mass customization at scale. These advancements make it possible to execute modular product strategies efficiently.

A hybrid model is now standard: keep core production in China, but diversify for resilience.

Additionnaly, brands are embracing modular product design — creating base items that can be customized regionally with logos, patches, or packaging. A bulk-produced T-shirt, for example, can be tailored for different teams or cities just-in-time.

This approach cuts costs, improves local relevance, and adapts quickly to shifting demand.

Flexibility Will Define World Cup 2026 Success

World Cup 2026 will reward agility. Brands that balance China’s strengths with regional sourcing, modular design, and sustainable practices will stay competitive. Those who don’t? They’ll miss the goal — and the opportunity.