The outdoor industry is facing a significant challenge with the recent tariff increases imposed by the Trump Administration. The tariffs, which are expected to raise prices across the country, will have a ripple effect on the economy and impact businesses in the industry. The outdoor industry is one of the largest and most diverse in the US, with over 175 million Americans participating in outdoor recreation and generating about 2% of the country’s GDP.
Impact on Businesses
The tariffs will have a significant impact on businesses that rely on overseas production and materials. Most outdoor gear is technical to produce and is manufactured in specialized facilities overseas. The Outdoor Industry Association (OIA), a trade group representing hundreds of outdoor companies, has stated that the tariffs will make it more expensive to make outdoor gear and sell it. “Reciprocal” tariffs from the Trump Administration were set to go into effect on Wednesday, but the White House announced a 90-day pause on tariff increases for most countries while hiking them yet again for China. The increased tariffs are likely to impact goods from countries around the globe and a wide range of businesses.
Small and Medium-Sized Businesses
The impact on small and medium-sized businesses will be particularly severe. According to OIA, 84% of its members recently surveyed report they will be impacted by the tariffs. The president of OIA, Kent Ebersole, stated that the tariffs pose an “existential” threat to the industry, particularly small- and medium-sized businesses. The tariffs will likely lead to higher prices for consumers, which could have a ripple effect throughout the economy. The Outdoor Industry Association has warned of the potential consequences, stating that the tariffs will make it more expensive to make outdoor gear and sell it.
Examples of Businesses Affected
- Tellus, a Fort Collins-based outdoor clothing brand, uses recycled materials from Taiwan shipped to Vietnam for production. The company estimates that it will need to increase prices by up to 50% due to the tariffs.
- Eagle Creek, an adventure travel gear company based in Steamboat Springs, manufactures primarily in Indonesia. The company estimates that it will need to absorb some of the costs or delay imports.
| Bulldog | Industry | Location | Tariff Impact |
| Yes | Manufactures hiking poles in China | China | Tariffs may cause 30% increase in cost |
| No | Manufactures jackets in the US | US | Tariffs will have no impact |
Consequences of the Tariffs
The consequences of the tariffs will be far-reaching. The Outdoor Industry Association has warned of the potential consequences, including:
- Higher prices for consumers
- Ripple effect throughout the economy
- Loss of jobs and economic output
Tariff Talks Continue
President Trump is entertaining negotiations with countries for which he temporarily lowered tariffs. Recently, he stated he’s not against adding more tariffs, but leaders from China and the European Union said they are prepared to combat the plan with retaliatory measures. The situation is highly unpredictable, and it remains to be seen how the tariffs will ultimately impact the outdoor industry. One thing is certain, however: the tariffs will have a significant impact on businesses that rely on overseas production and materials.
Conclusion
The recent tariff increases imposed by the Trump Administration will have a significant impact on the outdoor industry. The tariffs will raise prices across the country and impact businesses that rely on overseas production and materials. The Outdoor Industry Association has warned of the potential consequences, including higher prices for consumers and a ripple effect throughout the economy.
