Since ‘Liberation Day’, when Donald Trump announced a range a tariffs that the USA would apply to various countries around the world, life within the domestic snowsports industry has become more complicated.
Notwithstanding the fact that the actual level of tariffs varies from week to week, depending which country the USA is dealing with, the situation is complex.
The SIA (Snowsports Industries of America) made this clear in an email they sent out to members last week attempting to tackle some of the more common questions and answers they are coming across.
Most of their data such as their ‘Tariff Tracker’ is available for members only. However, some examples were shared which demonstrate the complexity of important goods from China and Europe.
Let’s take a look at some of the challenges affecting importers of ski and snowboard gear..
Q: I manufacture gloves in China and import them into the US. What is the total tariff that I need to pay?
A: The tariffs are different for each product. Because the US has placed several different tariffs on Chinese imports (some of which may or may not apply to your products), you need to consult multiple sources to answer this question correctly, including:
- The base tariff is unique per product as per the HTS codes
- Existing Section 301 tariffs from 2018
- 125% China tariff on all goods
- 20% “fentanyl” tariff on all imports
- Section 232 tariffs on extruded aluminum and steel
Therefore, for gloves, you would pay: Base + Section 301 + 125% China + 20% fentanyl = Total China tariff
Q: If I import alpine skis from Europe into the US, what tariffs am I responsible for?
A: Base tariff, plus 10% global tariff, plus Section 232 Aluminum derivative tariff based on the value of the aluminum content in the ski.
Q: How do I calculate the aluminum derivative tariff on a pair of skis coming from the EU?
A: The aluminum derivative tariff is “based upon the value of the aluminum content.” However, it’s important to remember that if the aluminum is smelted or cast in the US, even if the derivative aluminum products were processed in another country, there is no aluminum tariff.
Q: What about winter products that I export from the US into Europe? What new tariff do I pay?
A: This is not an issue yet. The EU has paused its retaliatory tariffs on US products until July 14, 2025. If possible, it’s best to move your product into Europe before July 14.
Q: I import jackets from Canada to the US. What are the tariffs?
A: If the product does not fall under the USMCA trade agreement, it is subject to the 25% tariff, plus the base.
Q: What are the tariffs on exports from the US to Canada?
A: There is a 25% tariff on US products exported to Canada. The list includes skis and other snow ski equipment, ski bindings, and ski and snowboard boots. `
Q: I manufacture sunglasses in China. I buy them from a middleman who buys them from the manufacturer. Can I reduce the tariff impact by applying the duties to the original sale from the manufacturer to the middleman?
A: Yes. If you purchase your product from a middleman who buys it from another middleman or the manufacturer, and you can demonstrate that it was manufactured for the US market, then you only need to apply duties to the first sale from the original manufacturer to the first middleman. You must provide documentation for every sale and resale of your goods, which can slightly reduce duties.
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Nothing is fixed, uncertainty rules
Bear in mind that all tariffs are changing from day to day (on 12 May a 90 day pause was put in place between the USA and China).
This blog post is purely to give a sense of the challenges that the industry faces in the current environment, exacerbated by the uncertainty around which tariffs will apply when and at what rate.
Inbound tourism to the USA is decreasing
A further, but less significant, issue facing the US snowsports industry is the impact the current administration’s policies are having on tourism.
There are almost daily reports of a decrease in demand and interest from overseas territories. Ultimately, US skier days are much less dependent on inbound tourism than in Europe, but it will still be a concern for some of the more international resorts.