Since 2018, the U.S. and China have engaged in a trade war that has resulted in increased costs, unpredictability and depressed job growth and innovation for many outdoor companies in the U.S. Earlier this year, the Trump administration imposed a 25% punitive tariff on $250 billion worth of products imported from China, including backpacks, sports bags, leather ski gloves, headwear, kayaks and camp chairs and, beginning on September 1, a 15% tariff on $112 billion worth of products including sailboards, water-skis, surfboards, outdoor apparel, footwear and other sporting goods.
As a result, outdoor industry companies have paid an extra $2.6 billion in tariffs on these products from September 2018 to September 2019 for a total of $7.4 billion in tariffs – compared to $4.8 billion the previous year. Making matters worse, the president still plans to impose another 15% punitive tariff on a second group of apparel, footwear and sporting goods totaling $160 billion on December 15.
While the U.S. and China are discussing a “Phase One” deal that could delay the next tariff increase and possibly rollback some existing punitive tariffs, details remain unclear, the punitive tariffs remain in place and the harm to the outdoor recreation industry continues.
Speaker: Rich Harper, Manager of International Trade at Outdoor Industry Association