For boardsports the impact is likely to be enormous as so many of our brands are based in the USA and much of our product is made in South East Asia and China in particular. Already logistics are beginning to look like a Covid 2.0 and supply chain disruption is not being stopped by the 80 day tariff holiday! Management everywhere is going from one meeting to another making plans for all eventualities.

In Europe the main impacts are likely to be the rerouting of product into the European market, but the EU has tools to stop significant dumping, and US-based brands need all the help they can get from their European subsidiaries.

For European brands exporting to the USA the size of the impact depends on where their products are manufactured. The EU has one of the biggest trade imbalances for goods with the USA, so may find itself right in the firing line.

The one positive so far is Europe’s politicians realising now that it’s time to put our money where our mouths are. According to Trump, Europe needs to stand up and be counted and so it’s likely the European economies will be reflated on the back of a massive increase in defence spending. So, it might not be the way we would like this to happen but a stronger Europe should benefit all business – including Boardsports.

On that last positive note the next issue looks at what’s new for next season in our markets and we talk to brands moving ahead in our troubled waters. Our Big Wig is Renaud Lacoste, President of the Tahe Outdoors Group, who are riding the storm with the advantage of home-grown production. As with any situation – new opportunities will occur.

By the time you read this editorial, who knows what might have happened and what new eventualities you will be preparing for, but a stronger Europe will be good for us all.

Sideways with a 10% Tariff

Clive Ripley