In a series of tweets, President Trump announced that the United States will impose a new punitive tariff of 10% on $300 billion worth of products – List 4 – from China, likely including all outdoor apparel, footwear, tents, sleeping bags, skis, snowboards and other sporting goods.
The Outdoor Industry Association (OIA) reported that the economic impact of this decision is significant for the outdoor industry. Based on analysis of trade import data from May 2019, had this extra 10% tariff been in place that month, it would have cost American outdoor companies an additional $700 million in new tariffs.
“This so-called ‘small’ tariff is anything but. The hard-working Americans in the outdoor industry have already shouldered an extra $1.25 billion in tariffs from the previous round imposed in September 2018,” said Patricia Rojas-Ungar, OIA’s vice president of government affairs. “These ‘taxes’ should instead be going back into creating more jobs, developing new products and expanding facilities and businesses. Instead, the administration’s trade agenda will hurt outdoor companies, particularly small and medium-sized businesses, and burden our communities further. We need a comprehensive trade deal between the United States and China, and we need it now.”
The Office of the United States Trade Representative (USTR) has not released a final list of products that will be subject to the 10% tariff. There is still a possibility that some outdoor products could be excluded. We will share that list with OIA members as soon as it is available.
The new tariff announcement comes a month after Trump backed down from a threat to impose up to a 25% tariff on List 4 products imported from China. Trump and President Xi agreed to resume negotiations on U.S. intellectual property protections and on the existing punitive tariffs on $250 billion worth of products, including a number of outdoor products on List 3.