SRM Entertainment, Inc. provided an update on trade-related market conditions on April 16, 2025, highlighting its favorable business model. The company manufactures products in China and passes title of its products to its largest customers in China, making them responsible for shipping, tariffs, and other duty-related expenses.
This business model provides SRM with the ability to mitigate changing trade conditions. Additionally, SRM maintains approximately $800,000 in domestic inventory of its proprietary products in the United States, which are sold through retailers and Amazon.
This domestic asset provides a readily available supply of key products, including lovable plush, backpack clips, drinkware, and the officially licensed Smurfs collectible line. CEO Rich Miller stated that this insulates a portion of the business from potential supply chain disruptions and tariff-related cost increases.
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