President Trump announced the imposition of "reciprocal tariffs" on all U.S. imports, setting a minimum rate of 10%. This new policy adds to existing trade duties, with some goods imported from China potentially facing tariffs as high as 145%. The announcement creates an environment of heightened public policy uncertainty for companies reliant on global supply chains.
Columbia Sportswear, a significant duty payer in the U.S., anticipates a substantial financial impact from these incremental tariffs. The company estimates a $35 million to $40 million impact to its cost of sales in 2025. Management has indicated plans to largely absorb these costs to maintain consumer value and market share, rather than passing them directly to consumers through price increases.
The increased tariff burden is expected to create significant headwinds for the apparel and footwear industry, potentially affecting profitability and operational planning. Columbia Sportswear CEO Tim Boyle previously emphasized the need for clarity on global tariff decisions to effectively plan for future business operations.
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