Trump’s trade war hits outdoor industry

Political News

(KUSA)  The ongoing trade war with China is costing the outdoor industry billions, and it’s about to cost even more as the Trump administration is expected to impose additional tariffs in December.

Boco Gear, based in Boulder, Colorado specializes in hats for runners.

They sell to retailers like Runner’s Roost and to events, teams and clubs worldwide.

“It’s the busiest time of year and there’s a lot of stress with the upcoming December 15th,” says CEO Kay Martin.

If the U.S. and China don’t come to an agreement by that date, President Trump has made it clear another scheduled tariff will hit.

The outdoor industry association says the industry has paid $2.6 billion more in tariffs this year than last.

Boco has been hit by two rounds of tariffs already.

“So, to date we have a 25-percent increase in tariff, which means we used to be able to import goods at 7-percent and now that’s 32-percent. Which is a lot for a small company to absorb,” Martin says.

Martin points out that some products have been hit harder.

Hiking boots faced a 37-percent tariff before the trade war.  Now, it’s more than 52-percent.

Companies are doing everything they can to weather the storm.

“So the first one, everyone took a piece of the pie. We pushed back on the manufacturer who is based in China. We took a hit and we might have passed a little bit on the consumer, but this last one we couldn’t do anymore of that. We had to pass the majority of the increase to the consumer,” Martin says. 

More: http://bit.ly/33eSh5H

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

Donate Today