Columbia Sportswear CEO: New tariffs would be ‘disaster for the American economy’
Most retailers are letting their associations and lobby groups speak out against the latest round of tariffs. But not all.
The CEO of Columbia Sportswear, Tim Boyle, on Friday issued a statement in which he said his company “will be forced to raise prices” if the tariffs are imposed. The letter was issued the day after the Trump Administration announced a new round of tariffs on the approximately $300 billion of Chinese goods that hadn’t already been targeted by previous American duties. The new 10% tariffs will impact a wide swath of consumer goods, including apparel and footwear.
Here is Boyle’s full statement.
“President Trump announced today via Twitter that he plans to raise tariffs on imported goods from China beginning September 1, 2019. If that happens, it will be a disaster for the American economy, employers and consumers. If tariffs are imposed, Columbia Sportswear Company – along with many other manufacturers in our industry – will be forced to raise prices on our products. This is a massive tax on employers and consumers, not on China.
“Footwear and apparel are some of the most highly taxed products in the United States. Herbert Hoover-era tariffs as high as 37.5% are already in place and are being paid by U.S. consumers. With President Trump’s proposed 10% tax on goods manufactured in China, the American people will see almost half the cost of their shoes and clothing go to taxes.
“Furthermore, raising tariffs creates uncertainty, which makes it difficult for American business to make investments that can continue to grow the U.S. economy. We’ve been fortunate to have a strong economy for the past decade. Let’s not tank the economy with the misguided conception that trade wars are fun.”
Some 70% of shoes sold in the U.S. comes from China, according to industry organization Footwear Distributors & Retailers of America. The group has estimated that a popular type of canvas “skate” sneaker could increase in price from $49.99 to $58.69 with an additional 10% tariff. In May, the group released a letter signed by some of the industry’s most prominent footwear retailers and brands in which it said the increased tariffs could have a “catastrophic” impact “for our consumers, our companies, and the American economy as a whole.”
The CEO of Columbia Sportswear, Tim Boyle, on Friday issued a statement in which he said his company “will be forced to raise prices” if the tariffs are imposed. The letter was issued the day after the Trump Administration announced a new round of tariffs on the approximately $300 billion of Chinese goods that hadn’t already been targeted by previous American duties. The new 10% tariffs will impact a wide swath of consumer goods, including apparel and footwear.
Here is Boyle’s full statement.
“President Trump announced today via Twitter that he plans to raise tariffs on imported goods from China beginning September 1, 2019. If that happens, it will be a disaster for the American economy, employers and consumers. If tariffs are imposed, Columbia Sportswear Company – along with many other manufacturers in our industry – will be forced to raise prices on our products. This is a massive tax on employers and consumers, not on China.
“Footwear and apparel are some of the most highly taxed products in the United States. Herbert Hoover-era tariffs as high as 37.5% are already in place and are being paid by U.S. consumers. With President Trump’s proposed 10% tax on goods manufactured in China, the American people will see almost half the cost of their shoes and clothing go to taxes.
“Furthermore, raising tariffs creates uncertainty, which makes it difficult for American business to make investments that can continue to grow the U.S. economy. We’ve been fortunate to have a strong economy for the past decade. Let’s not tank the economy with the misguided conception that trade wars are fun.”
Some 70% of shoes sold in the U.S. comes from China, according to industry organization Footwear Distributors & Retailers of America. The group has estimated that a popular type of canvas “skate” sneaker could increase in price from $49.99 to $58.69 with an additional 10% tariff. In May, the group released a letter signed by some of the industry’s most prominent footwear retailers and brands in which it said the increased tariffs could have a “catastrophic” impact “for our consumers, our companies, and the American economy as a whole.”