Outdoor companies paid $7.7 billion in tariffs on imports from China from January to November 2019
BOULDER, Colo., January 15, 2020 – Outdoor Industry Association (OIA) welcomed the signing today of the phase one trade deal between the United States and China and renewed its call for the administration to promptly conclude a phase two deal to lift all punitive tariffs. As part of the phase one agreement, the United States will reduce existing punitive tariffs on $120 billion worth of Chinese imports (List 4a) from 15 percent to 7.5 percent and maintain a 25 percent tariff on approximately $250 billion of Chinese imports. Some of the outdoor products impacted by this change include hiking boots, ski jackets and tents. OIA welcomes the reductions in tariffs on these products in order to reduce the impact of millions of dollars currently being paid by American companies.
“Outdoor companies are not only eager to see the phase one trade deal go into effect but also implore the administration to quickly eliminate punitive tariffs on all other Chinese imports,” said Patricia Rojas-Ungar, vice president of government affairs at OIA. “The uncertainty about when these tariffs will be reduced or eliminated and the possibility that new tariffs could still be imposed has significantly inhibited the ability of outdoor companies to explore new business opportunities, develop new products and create U.S. jobs. Eliminating these tariffs will help outdoor companies get back to doing what they do best: creating new, innovative outdoor gear to enhance the outdoor experience and help the U.S. economy continue to grow. American outdoor businesses will continue to pay millions in unnecessary tariffs until this trade war with China is fully resolved and all Section 301 tariffs are removed.”
OIA also released the latest data on Section 301 tariffs paid by outdoor industry companies through November 2019. Year over year, outdoor industry companies have continued to see increases in overall tariffs paid on imports from China as a result of the trade war. From January to November of 2019, outdoor industry companies paid $7.7 billion in tariffs on affected products from China, up from $5.2 billion in 2018 and $4.6 billion in 2017. Furthermore, outdoor companies paid over $800 million in tariffs in November alone, including an estimated $480 million directly from Section 301 tariffs.
According to the latest trade data, despite a drop (19 percent) in imports of List 4A products in November 2019 compared to the previous year, outdoor companies paid:
- Nearly $60 million in additional tariffs on apparel
- Nearly $100 million in additional tariffs on outdoor equipment
- $50 million in additional tariffs on footwear
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 over 1,300 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.