July: Outdoor Businesses Paid $1.8 Billion in Tariffs in U.S.-China Trade War

Outdoor Industry Association, members including Nemo Equipment, VF Corporation, Nester Hosiery, Columbia Sportswear visit D.C.to urge Congress to help resolve U.S.-China trade war.

Trade Deficits
July: Outdoor Businesses Paid $1.8 Billion in Tariffs in U.S.-China Trade War

BOULDER, Colo., –  -(AmmoLand.com)- America’s outdoor recreation businesses have paid $1.8 billion more in tariffs over the last eleven months (Sept 2018 to July 2019) compared to the previous period a year ago on affected outdoor products.

New data compiled and analyzed by the Trade Partnership includes the toll of tariffs on a variety of outdoor recreation equipment including backpacks, camp chairs, leather ski gloves, kayaks and bicycles, which are saddled with the 25 percent punitive tariffs, causing the average tariff rate on outdoor equipment to more than double compared to the previous year. Since the start of the trade war with China last year, outdoor industry companies have paid nearly three times the number of tariffs on outdoor products hit with Section 301 China tariffs for a total of $2.8 billion.

“The trade war is wreaking havoc on the American outdoor industry, among many others,” said Patricia Rojas-Ungar, vice president of government affairs at Outdoor Industry Association.

“As we have said before, the numbers do not lie, American outdoor businesses have paid an extra $1.8 billion in tariffs since the trade war started, nearly triple what we paid last year. The punitive tariff payments are essentially new taxes on American businesses and consumers, forcing American companies to halt new hiring, close new product lines and absorb these unexpected costs wherever they can. The cushion is now essentially gone. We are urging Congress to get off the sidelines and help put an end to this destructive tariff policy that is hurting Americans from coast to coast.”

“We are here in Washington to communicate to Congress the increasingly negative impacts tariffs are having on our ability to continue to grow American jobs, said Brent Merriam, COO of Nemo Equipment.

“We are a small, founder-led business that produces performance outdoor gear including tents, camp chairs and sleeping bags. The punitive tariffs threaten our ability to bring these innovative products to market, with the end results being increased costs, limited investment in new products and personnel, and potentially higher prices for our consumers. We implore Congress to work with President Trump to end the trade war with China.”

American outdoor industry manufacturers and retailers are holding off on filling jobs, expanding facilities and developing new products due to the economic strain the tariffs are having on their operations because they themselves are paying the tariffs, not China. If the trade war wages on for much longer American outdoor industry manufacturers and retailers will be forced to eliminate products, cut jobs, or in some cases, go out of business altogether. At some point, if they have not already, consumers will feel the impact of higher prices on outdoor products – from hiking shoes to ski jackets and everything in between.

OIA will continue to update and release the industry’s tariff payments as the U.S.-China trade war wears on, so that American consumers are aware of the real impacts to an escalation strategy rather than talks and diplomacy. Stay tuned for more info, but it remains our hope that a trade deal can be reached and that all punitive tariffs will be removed.


Outdoor Industry Association

About Outdoor Industry Association

Based in Boulder, Colo., with offices in Washington, D.C., Outdoor Industry Association (OIA) is the leading trade association for the outdoor industry and the title sponsor of Outdoor Retailer. OIA unites and serves 1300 manufacturer, supplier, sales representative and retailer members through its focus on trade and recreation policy, sustainable business innovation and outdoor participation. For more information, visit outdoorindustry.org.

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Will Flatt

Tough! These companies should be MAKING THEIR PRODUCTS IN THE USA, NOT PROPPING UP A COMMUNIST GOVERNMENT!!

I have no sympathy for these companies. They should leave the USA or shut their doors!

YourWorstEnemy

Uuhhmm, maybe you should tell your industry members to buy or make their products in the USA. MAGA!

cav2108

Time for this “industry” to find a different supplier. And stop whining about tariffs. Personally, I am tired of buying Chinese junk because their products are all that are available because the stuff isn’t made here anymore. These are typically American designed items that have been reverse-engineered and manufactured in communist gulags, or state subsidized sweat shops, by unfortunate people and their commie rulers who will do anything to make a buck, and NEVER buy anything from us. Trade is supposed to be a two-way street. China’s idea of trade is to buy a couple of American products, reverse-engineer them… Read more »

Mac

Pay now (and forever) or pay a little now and stomp China! I’ll pay a little now, thank you!

Kaiserworks

Too bad, so sad. Make in local, or if u need it cheaper than US made, your telling me that you can’t find a sweat shop in Mexico to make your Chinese crap? Maybe if you can’t help American workers, you can help Mexican jobs that will keep them from immigrating here? FU, I will never buy product from any of the companies named in the article.

tomcat

Duh, I think a solution to this problem would be to build the outdoor stuff here. You never know, the quality would probably improve. If it says “made in China” I try to avoid it.

joefoam

The beauty of the tariffs is that they will drive American companies to rethink sourcing goods from China and bring those jobs back. Or easier yet, source from another country. Free enterprise will drive businesses to help Americans.

JPM

Most of these “outdoor industry manufacturers” think they lose money when they “only” make 10 million dollars when last year they made 11 million dollars. American Capitalism is not based upon supply & demand any more, it’s based solely upon greed. Any one of these manufacturers is successful or they wouldn’t be in business at all, but if the executives don’t get a six figure bonus or a raise when they’re already making millions, in their minds, it’s a crime. God forbid they should spend or invest their own money into the business to boost profits, but all most will… Read more »

Morrigan

There was a time in the distant past when I would avoid buying any product that was labeled “Made In China”. Well that certainly changed. I retain a memory of the reality of China: its abuse of its own citizens and minorities in country, its proxy wars around the world. It is now nearly impossible to buy “Made in America” but I still try. Well past time for a divorce.

JohnnyMac

When I go to buy product I always look at the tag to see where bit is made. If it is made in China I almost always put it back.