Last week, President Trump announced on most imported steel and aluminum (25 percent on the former and 10听on the latter), which go into effect on March 23.听So what's that mean for the price of your favorite camping stove, skis, or bike鈥攁nd the companies that make听those products?听听
In short: It depends on where the gear comes from.听Many U.S. outdoor brands manufacture their products overseas, then听import the finished goods. These companies should听remain听unaffected by the tariffs, which only apply to the raw metals.听Of course, imported bikes, skis, outdoor apparel, and the like are already subject听to ,听but those won't听increase as a result of Trump's recent ruling.听
It's brands that make their goods in the听U.S.听that stand to take a financial hit, whether they source their metals at home or overseas.听
Joseph Daniels, chair of the Marquette University Economics Department, predicts that the tariffs will drive up the domestic cost of steel and aluminum听because of increased demand.听In past studies on steel, the cost of the raw material rose a third of the total tariff amount, says Daniels. 鈥淔oreign producers will pass on some of the costs of the tariff to U.S. consumers, but not the full amount,鈥 he says. 听
Daniels听couldn't say exactly how much domestic costs will go up or听how brands that听manufacture in the U.S. will respond.听Many brands are still unsure of exactly how they'll be affected. However, across the industry, there seems to be a mutual sense of foreboding, as bike, ski, and camping-gear makers anticipate costs to rise. On Tuesday, March 13, Rich Harper, the Outdoor Industry Association's manager for international trade, wrote in an email that the tariffs听“would lead to higher costs for outdoor products produced domestically that utilize steel and aluminum imports, like camping stoves, tent poles and skis and snowboards.”
Paul Sadoff, who runs ,听a custom-bike maker听in Santa Cruz, California, says he expects his costs to increase 鈥渁n additional $2,500-3,000 annually,鈥 if his suppliers pass along the full tax听increases on imported steel and aluminum. Sadoff鈥檚 company specializes in steel and aluminum frames, and sources roughly half of its materials from within the U.S. 鈥淭here is very little margin in hand-made bicycle frames, so any additional costs eat into an already minuscule bottom line,鈥 he says. 鈥淚t is not easy to make a living at what I do, so this latest tariff is an unwelcome development.鈥 He anticipates that any significant cost increases will get passed on to the consumer.听
American-based ski companies have no choice but to import their steel ski edges, as there currently aren't any manufacturers producing听it domestically. Ski company Moment manufactures its products听in the U.S. but sources steel听from Germany. 鈥淪teel edge is used in every single ski and a 25-percent increase is large,鈥 says CEO Luke Jacobson. Jacobson predicts听the tariff will raise Moment's cost-per-ski by less than $1, though “every penny counts when you're running a business,” he says.听
It's not just boutique gear makers that are worried. Take听MSR. Between stoves, camp-kitchen equipment, avalanche safety gear, tents, and snowshoes, the Seattle-based company uses a听lot of steel and aluminum in its products. According to a spokesperson, a large percentage of that metal comes from within the U.S. So while听the brand says it expects “the short-term impact to be relatively low,鈥 it is bracing for higher costs down the line. The company could not pin down how much it听anticipates costs rising,听but said it will “work to minimize or eliminate the effect that increased material costs have on customer prices.”听
The tariffs could incentive brands to stop making their goods in the U.S. and start听outsourcing manufacturing to another country.听According to David Kuenzel, an assistant economics professor at Wesleyan University, 鈥淯.S. producers that use steel or aluminum will be put at a comparative disadvantage to producers in other countries.鈥澨齏ith costs of both imported and domestically produced steel and aluminum expected to rise, U.S.-based brands will face a financial incentive to ship their manufacturing overseas.听
In the meantime, Harper, of the OIA, has put out for outdoor brands to “email me with听your thoughts听on the president鈥檚 tariffs and how it impacts your business.”听Harper and his colleagues are making sure outdoor companies are apprised of the latest developments听and are听“keeping eye on other countries, to see if they put together their own retaliatory list of tariffs,” which the EU has already .
If costs of domestic manufacturing do rise, it'll be largely up to consumers to support companies that decide to keep their manufacturing stateside.