The 400-billion-dollar outdoor industry sounds the alarm on Trump's trade war

Representatives from VF Corporation, Columbia Sportswear, Nester Hosiery and NEMO Equipment met with lawmakers at Capitol Hill this week, explaining how the US-China trade war had a negative impact on their results. .

"We want our message to make it clear that this affects American businesses, American jobs, American innovation and that this only delays this," said Katie Kumerow, Sustainable Development Manager at Nester Hosiery, who manufactures special socks.

From September 2018 to July 2019, outdoor recreation companies paid $ 1.8 billion more in tariffs compared to the same period last year, according to new data released Thursday by the Outdoor Industry Association. This tariff increase is almost triple what outdoor industry companies paid for last year, according to the latest data from the commercial group.

"Our growth is hampered at the present time because we are not able to increase our workforce," said Brent Merriam, general manager of Nemo Equipment, who joined the company 's members. association Thursday at Capitol Hill.

NEMO Equipment, a New Hampshire-based manufacturer of sleeping bags and tents that has 30 people, has already paid $ 175,000 in fees Although it may not sound like much, Merriam says it's a big deal for his company and has led to suspension three jobs.

NEMO Equipment also had to dedicate time and resources to finding new partners in the supply chain. Merriam went to the Philippines last fall as part of an effort to relocate a range of camp chairs from a supplier in China.

"The resources we would normally use to innovate in new products have been transformed into a product identical to the one we already manufacture elsewhere," said Merriam.

Nester Hosiery, based in Mount Airy, North Carolina, faced his own challenges in sock production. Its largest supplier of merino wool was based in China. Immediately after Trump imposed a 10% tariff on Chinese imports last September, the supplier shifted production to its European factories to avoid much of the sanctions.

The process took almost six months and even now the material ordering time is three to four weeks longer than before.

"The transition itself has been problematic and has caused a lot of delays – even now that all of our raw materials are fully transferred to Europe, we are seeing capacity problems and generally longer delays in getting wool to North Carolina, where we knit our socks, "said Kumerow.

According to the Bureau of Economic Analysis, the economy of outdoor recreation accounts for 2.2% of US GDP, or $ 412 billion. The trade group estimates that the sector supports 7.6 million jobs in the United States and accounts for consumer spending of $ 887 billion, taking into account everything from clothing and footwear to ticket. plane and ski tickets.

"We have also experienced a year and a half of absolute and absolute uncertainty," Kumerow said after an interview with the legislator. "Even though most of the time, we are affected, from September, we have been struggling for a year to anticipate what could happen."

What has been a robust slice of the economy is facing job losses and price increases for consumers if the trade war goes on. Emily Vedaa, Columbia Sportswear's global head of customs and trade, said she hoped to provide lawmakers with concrete examples of the impact of the trade war.

One of these examples: "tariff price tags". Columbia has devised price tags indicating the selling price of a Columbia fleece jacket, as well as the normal 32% duty and 25% additional punitive duty imposed in recent months by Trump. What starts with a $ 100 jacket goes up to $ 157. Columbia Sportswear wants price tags to determine the impact of fares on consumers.

"We have not yet raised our prices, but we are thinking about what, when and how much we can actually do it," Vedaa said. Columbia products were hardest hit by the 15% increase in tariffs on Chinese products, valued at about $ 111 billion, effective September 1st. Vedaa said she had to scramble to import as many products as possible before that date. Although Colombia has not yet raised prices on consumers, it still absorbs the cost of tariffs in the meantime.

The members of the outdoor trade group have met with lawmakers from nearly a dozen states. The group began the day by meeting with Representative Greg Gianforte, R-Mont., Where the outdoor recreation economy generates 71,000 jobs and consumer spending of $ 7.1 billion, according to the group.

"Nobody wins with a trade war," Gianforte said in a statement to CNBC. "I urged trade negotiators to quickly resolve the talks and announce new trade agreements that work for Montana."

The need for certainty has never been greater, because companies that have been trying to absorb the cost of tariffs so far, but must consider inevitable price increases that will ultimately affect the US consumer.

"It's very helpful for our members to come to Washington," said Patricia Rojas-Ungar, group lobbyist. "It is the pressure exerted by the Americans who come to speak to their elected officials and make calls to the White House that incite the President to rethink this policy because it does not work and it is the Americans who are harmed. "