Trump's Latest Tariffs Could Mean Much Pricier Outdoor Gear
The outdoor and fitness industries are bracing for what stands to be the most impactful round of Chinese import tariffs yet, the outcome of which could make gear more expensive for consumers and hit businesses’ bottom lines hard.
On Monday, the Office of the U.S. Trade Representative published a list of $300 billion in goods that could be subject to a 25 percent tax as soon as late June. The list includes athletic footwear and apparel (think rain shells, puffy coats, yoga tights, and running shoes), ski boots, and all manner of sports equipment, from fishing rods to ice skates.
It’s the result of a reignited trade conflict between the U.S. and China. President Trump first instituted tariffs on $50 billion in Chinese imports last April over supposed intellectual property infringement. The last 12 months have seen them added to two additional groups of imports. Monday’s announcement marks what would be the fourth. (China has responded with retaliatory tariffs each time.)
If this round goes through, companies that manufacture these goods in China will face two options: keep the MSRP the same for the consumer and let the tariffs eat into their profit margins, or increase their prices to make up some or all of the losses. How much could prices go up? Chris Steinkamp, director of communications and marketing for Snowsports Industries of America (SIA), says that on a recent conference call about the tariffs, several brands talked about increasing prices the full 25 percent on certain items. (Think about adding such an increase to the cost of an already expensive hard-shell jacket or pair of trail shoes. Say you want to buy a $600 ski shell. Theoretically, these new tariffs could raise its price to $750.) Many brands will probably try to find a middle ground—absorb some of the cost themselves and pass some of it on to the consumer.
https://www.outsideonline.com/2396561/trump-china-tariffs-outdoor-gear?utm_medium=email&utm_campaign=Gear-Fix-05172019&utm_content=Gear-Fix-05172019+Version+A+CID_f8b1c513a4d75ab8190b3f6e84e22c7f&utm_source=campaignmonitor%20outsidemagazine&utm_term=Trumps%20Latest%20Tariffs%20Could%20Mean%20Much%20Pricier%20Gear
= new reply since forum marked as read
