From SAM: Latest Tariffs Would Impact Winter Sports Goods

[Ron]

great! I am very interested to hear about the true impacts. THANKS.

 

[noncrazycanuck]

as America drifts to isolationism once again what would you expect.
probably the same as before, lets just hope it's not the same outcome as last time
a deal or not the price of skis is pretty small potatoes in the bigger picture .

life is all political if you like it or not

 

[Coach13]

Even American manufacturers use foreign materials. I don't really know what all it encompasses, hopefully someone will give us the Cliffs Notes.

Exactly-Any material/resources on the tariff list used by US manufacturers will be affected. In turn, the final price charged to consumers like us will likely go up. Most manufacturers don’t normally operate on a margin that will allow them to eat this added cost. As a result it’s passed on to the buyers, like us.

 

[Bob Yoder]

soft goods are moving to Viet Nam and this will continue, not new, has been happening for 5 years. Not sure which ski manufacturers produce equipment in China, I am guessing very few. I vividly remember when Volkl needed some more Katana production and sent all the molds and material to China to do a second run. As you may remember the skis fell apart and they warrantied them with skis then made in Germany. So, my guess is we are taking about lower priced items, poles, helmets etc. Cost impact would me minimal.

 

[coskigirl]

My company is a manufacturer or, rather, we own companies that manufacture, and China is a huge market for us. Suffice it to say, this tariff war is nerve wracking at best. Even the tariffs you may not think related to our chosen activities often do. We make equipment such as force sensors used in fancy spin bikes and equipment used in making sure electronics manufacturing in China is clean (ie phones, GPS units, etc). That's the best I can do without getting too political.

 

[Jim McDonald]

When you add in components & materials, there's very little that won't be affected by these tariffs.

 

[Seldomski]

What's the bigger impact to ski equipment sales? Tariffs on the ski-related goods, or impact of those taxes on costs for everything else limiting consumers' total budget for such luxuries? I am guessing the latter.

 

[crgildart]

Adding 30%-40% to the cost of 70% of the durable goods we purchase is going to really cut in to our disposable income for sure. Mostly first world problems for us compared to the farmers and mom and pops getting hit much harder

 

[cantunamunch]

Adding 30%-40% to the cost of 70% of the durable goods we purchase is going to really cut in to our disposable income for sure. Mostly first world problems for us compared to the farmers and mom and pops getting hit much harder

Now put yourself in the shoes of a local ski shop not at the base of an IKON/Epic resort.

 

[Wilhelmson]

There are some great deals in Canada on Boxing Day.

There's probably enough inventory and closeout items already in the US that by the time this round of tariffs bites the trade war will be over.

 

[Erik Timmerman]

Exactly-Any material/resources on the tariff list used by US manufacturers will be affected. In turn, the final price charged to consumers like us will likely go up. Most manufacturers don’t normally operate on a margin that will allow them to eat this added cost. As a result it’s passed on to the buyers, like us.

I don't think that is always true. There have been quite a few articles in the WSJ over the last year about how these work, and oftentimes, you can just move one step outside of China and bypass the tariff. For example, make billet aluminum, then ship it to a middle country for heat-treatment which changes it from one product into another and bypasses the tariff. There aren't a lot of products where they try to tally the content like they do with cars.

 

[Wilhelmson]

As it relates to the ski industry a prolonged trade dispute would be net disninflationary as wage gains stagnate, consumers tighten their belts and put off large purchases, all while prices fall for food, fuel, and raw materials. The economic impact plus tariffs would hurt anyone selling premium discretionary items and services for full price regardless of where it was manufactured.

 

[Ron]

Not sure which ski manufacturers produce equipment in China, I am guessing very few.

actually, there are a lot of skis made there and not just the final product but materials and components are made there and then shipped to the USA for use in final manufacturing. all of those are tariffed.

 

[Ron]

SOOOO, Hold on folks, China just devalued their currency. now the games will get very messy.

 

[Cameron]

How much of an impact will this really have on the upcoming season? I would expect the vast majority of the 2019-2020 products, especially hard goods like skis to be imported prior to September 1 for distribution but then again it's been 16 years since I left the industry on the retail side.

 

[Coach13]

I don't think that is always true. There have been quite a few articles in the WSJ over the last year about how these work, and oftentimes, you can just move one step outside of China and bypass the tariff. For example, make billet aluminum, then ship it to a middle country for heat-treatment which changes it from one product into another and bypasses the tariff. There aren't a lot of products where they try to tally the content like they do with cars.

I agree there are some work arounds possible for unfinished/in process goods that come thru countries not on the tariff lists. I ‘m sure if this a new tariff at every whim continues, China especially will seek to up the ante in that regard.

 

[Ron]

@Coach13 they did, see #34

 

[crgildart]

There are some great deals in Canada on Boxing Day.

There's probably enough inventory and closeout items already in the US that by the time this round of tariffs bites the trade war will be over.

Add to this that the Canadian dollar will be doing much better than the American dollar as the result of this trade war we are losing badly.

 

[scott43]

Add to this that the Canadian dollar will be doing much better than the American dollar as the result of this trade war we are losing badly.

Meh there's a long way to go. In 2013 we bought a bunch of US cash, US stocks and a car down there and the Canadian dollar was at $1.04 US. It's at like $0.84 now.. We made out like bandits..

 

[crgildart]

Meh there's a long way to go. In 2013 we bought a bunch of US cash, US stocks and a car down there and the Canadian dollar was at $1.04 US. It's at like $0.84 now.. We made out like bandits..

Remember what the 1980 Russia grain embargo and Olympic boycott did for the trade of Canada and Australia? US never recovered those wheat markets lost to Canada dn Australia..