Teddy Time Blog
Trade Update: IEEPA Tariffs and What It Means Moving Forward
[Whitmore Lake, MI February 23rd, 2026]–
On February 23, U.S. Customs and Border Protection announced that duties collected under the International Emergency Economic Powers Act (IEEPA) will officially end at 12:00 a.m. ET on February 24, 2026.
For The Bear Factory, and many importers across our industry, IEEPA has represented a 20% additional duty on applicable goods over the past year. The recent update transitions tariff authority away from IEEPA and introduces a temporary 10% duty under Section 122 of the Trade Act of 1974 for a 150-day period.
At a headline level, this may appear to signal immediate cost relief. In practice, the impact is more measured.
Where We Stand Today
Approximately 90% of our current inventory was imported under the previous tariff structure and carries 20% and 30% duty costs. Those tariffs have already been paid and are embedded in our landed product costs.
Because of this, no pricing changes will take place at this time.
“Our responsibility is to provide stability to our partners. Reacting prematurely to evolving trade policy does not serve that goal. We will continue operating from confirmed regulations and real costs — not speculation.”
What About Potential Refunds?
There has been discussion regarding possible refunds of previously paid IEEPA duties. At this time:
No formal guidance has been issued by Customs.
Refund eligibility and process remain unclear.
There is no operational impact until official direction is provided.
Should clarity emerge, we will evaluate it responsibly and communicate accordingly. Until then, it has no bearing on our current operations or pricing structure.
Our Commitment to You
Trade policy will continue to evolve. That is part of the global environment we operate in. What does not change is our commitment to:
Transparency in communication
Stability in pricing whenever possible
Responsible decision-making grounded in facts
Long-term partnership over short-term reaction
We are monitoring developments closely with our licensed brokers and trade advisors. When meaningful updates occur, you will hear them from us directly.
We appreciate your continued partnership and remain focused on delivering quality, consistency, and forward momentum for your business.
Together, we navigate change — thoughtfully and confidently.
About The Bear Factory
Founded in 2001, The Bear Factory LLC is a Michigan-based, family-owned company specializing in high-quality, customizable plush toys. With over 20 years of experience in the industry, we have established ourselves as a leader in innovation, sustainability, and design. Our unique ‘build-your-own plush’ experience allows customers to create personalized stuffed animals, fostering creativity and lasting memories.
Committed to environmental responsibility, The Bear Factory utilizes recycled materials in its products through our Plush for the Planet line. Our mission is to provide exceptional products while educating the next generation on the importance of sustainability and community engagement.
