China-US Trade Tensions: Outdoor recreation companies take a hit

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Trump's proposal for fresh tariffs has caught the attention of manufacturers and retailers in the outdoor recreation industry. The sector held its largest US trade show this week in Denver, Colorado. CGTN's Hendrik Sybrandy was there to gauge the mood.

The core philosophy of the U.S. footwear brand Keen is pretty simple: 'to get people outside to play.' This mini-carnival outside the Colorado Convention Center spun that point colorfully this week. Meantime, perhaps more than ever, Keen's executives are focused on dollars and cents.

SARA BOWERSOX KEEN GLOBAL COMPLIANCE MANAGER "I have a big job. I manage global trade compliance for the brand and I'm spending an inordinate amount of time worrying about tariffs in China.'

Sara Bowersox has lots of company. Across the street, many businesses attending this year's Outdoor Retailer Summer Market trade show have a story to tell about how U.S. tariffs on imports from China have affected them.

KAY MARTIN BOCO GEAR CEO "Trucker hat for us was $25 and now it can be $30-32."

Kay Martin runs Boco Gear, 90 percent of whose headwear is manufactured in China. She says tariffs, now at 25 percent, when added to existing import duties, have put the squeeze on her small firm.

KAY MARTIN BOCO GEAR CEO "Basically what it's doing is taking away profit."

The rounds of tariffs already imposed have been felt by some of these businesses, but not all.

HENDRIK SYBRANDY DENVER "What really worries the industry is Round 4 or List 4 which covers products like tents, canoes, pants and hiking boots, a big seller with the summer approaching."

The Outdoor Industry Association claims that round, if implemented, together with the tariffs already in place, will cost the industry an additional $1.5 billion each month. A burden many say has to be shared.

SARA BOWERSOX KEEN GLOBAL COMPLIANCE MANAGER "Everybody's looking at, oh, can I take a little bit out here, can I get a discount from my supplier, can I take it out of the costs in the supply chain and then pass a little bit onto the consumer, and then I eat a little bit."

This knife manufacturer says the unpredictability of the U.S. tariffs has hurt it most of all.

JOE MCSWINEY SOG COO "You know we have to give notice to our retail partners if we're going to make any changes in our pricing. Consumers need notice as well, and it's hard to do that when there's uncertainty."

KAY MARTIN BOCO GEAR CEO "The most annoying thing is having it impact us by Tweet."

Martin says moving her supply chain isn't an option. Her Chinese factory is just too valuable.

KAY MARTIN BOCO GEAR CEO "From talking to my factory, they are hurting, but so are we."

Nervous company reps packed a session at the trade show dedicated to the issue and the prospect of more tariffs.

PETER BRAGDON COLUMBIA SPORTSWEAR EXECUTIVE VP "Our highest tariff right now on some of our products at Columbia is 37.5 percent. If you tack on 25 to that, you very quickly have a product that can't be sold at a profit and the American consumers are either going to pay the price or not get the product."

The prospect of folks downsizing or cancelling outdoor trips worries Bowersox.

SARA BOWERSOX KEEN GLOBAL COMPLIANCE MANAGER "That's what I'm really afraid of is that people are going to use the additional costs of stuff they need to not do these things."

A potentially devastating blow, the industry says, to what is an $887 billion outdoor recreation economy.

Hendrik Sybrandy, CGTN, Denver.