Economic uncertainty plus a revolving door of tariffs means surfers and brands will likely feel a squeeze.
Following the news of tariffs announced (then unannounced) by United States President Donald Trump is like reading the world’s worst surf forecast. Impending one moment and completely different the next. At midnight on April 9, Trump’s “reciprocal tariffs” on about 90 countries sending goods into the US were due to take effect. But by mid-morning, the administration announced that the tariffs had been paused for 90 days and lowered 10% for the listed countries except China, which now faces 145% tariffs on products coming to the United States.
The chaotic, back-and-forth nature of these tariffs has repercussions at a global and individual level. In a bid to bring manufacturing back to America, the uncertainty has created turmoil in financial markets and has economists predicting the US could sink into a recession of its own making.
But tariffs also cause major ripple effects across the world’s trade network, and it’s fair to wonder if the surf industry will be one of many casualties in a trade war. “If the United States is bent on waging a tariff war or trade war, China is ready to fight to the end,” Chinese foreign ministry spokesperson Lin Jian said on Wednesday, according to state-run newspaper People’s Daily.
As Trump and his administration have shown, the situation is fluid and things change daily. But by and large, tariffs mean it will cost companies more to get products into the United States. And surfers buying goods in America will see higher sticker prices on surfboards, wetsuits, boardshorts and accessories. How much more? It depends on where they come from.
For example, most wetsuits on the market are made in Vietnam, Cambodia and Thailand — countries that are facing (for now) a 10% tariff on US imports. Last week, before the 90-day pause through another wrench in the global trade network, Paul Naude, CEO and founder of Vissla, lamented to Shop-Eat-Surf about the tariffs, noting that retail wetsuit prices could go up 50% depending on the country of origin.
“The manufacturers had stepped up, the supply chain had done what they can, the brands had done what they can to lessen the impact,” Naude said. “Now we’ve got to start all over again. Virtually every country that supplies goods to this country is affected, and they are not small increases – they are significant increases.
“I’m not sure how long they will be in effect, but in the meantime, we don’t have a choice,” he continued. “We have to do the best that we can and try to be as fair as possible. I will say this, I think it’s an unfair burden for the government to put on businesses and the consumer. I really hope they have a plan, but I’m not convinced that they do. If they do have a plan, they better announce it soon.”
Vipe Desai, the executive director of the Surf Industry Members Association, said the unpredictability created a real problem for companies. Usually, he said, when tariffs are on the table, there are discussions with trade groups and rollout periods so businesses can crunch the numbers and adjust. None of that is happening now.
Trump’s reciprocal tariffs, now paused for 90 days, range from 11% to a whopping 50%. Surf manufacturing hubs like Japan (24%), Thailand (36%) and Vietnam (46%) are on that list. For surf companies doing business in those regions, the higher the tariff, the harder it is to absorb the costs. That means taking a hard look at budgets, payroll, supply chains and manufacturing facilities. “Everything is on the table,” Desai said. “Everything you have to do is absorb some of those changes so you pass along as little as you have to retailers and consumers. But everyone is going to take a hit on this.”
Therein lies another wrinkle in the sheets. As companies grapple with tariffs, essentially paying a tax to the US government, costs go up in sectors like tech, travel or food go up too. And the purse strings become tighter. The trickle-down effect of large and sweeping tariffs is on the customer’s wallet.
“From the consumer side, we will probably start to see a discretionary recession; they will spend on what is most important to them,” Desai said. “I’m going to buy X, but I’m no longer going to buy Y.
“The price of a surfboard may not change,” he continued, “But the costs of other goods I need are going up. Then it becomes discretionary. Am I getting a new surfboard this year or am I going to have to shell out for a wetsuit?”
Like soft goods, the tariff impacts on surfboards depend on where they’re made. Brands like Haydenshapes and Firewire, which are made mostly in Thailand, are more exposed than a US-based brand like Channel Islands Surfboards, which is headquartered in Capinteria, California.
The various licensee deals that Channel Islands has in place mean that the boards are mostly built, not shipped, where they’re sold. Australia, Indonesia and Japan all have CI operations. Other notable board builders like Pyzel, …Lost, and DHD have a similar model. They’re not completely protected, but they’re not shipping and paying for loads of boards to go across the seven seas. Channel Islands does not import foreign-made boards into the US, said CI President Scott Anderson, who has overseen CI since 1998.
However, CI’s foam supplier is based in Mexico, a country that has its own trade deal with the US. Though Trump’s flip-flopping has made it hard to follow, Canada and Mexico are not subject to the new blanket tariffs announced April 9. To date, goods that comply with the US-Mexico-Canada Agreement are exempt from 25% tariffs. But it’s unclear which way the wind will blow. As it stands, the Mexican-made foam is a small component of Channel Islands’ process, and there are no current plans to pass costs onto customers, according to Anderson.
“I think we’ll be able to absorb that,” he said. “We don’t have any plans to pass anything on right now, even on the accessory side, right now.”
But while surfboard prices may stay relatively stable, the tariff ripple effect still impacts the domestic manufacturer, albeit less directly. Take fins and fin boxes, for example. Half of Futures’ business is split between the US and China. FCS fins are made entirely overseas. Desai underscored this point — when costs elsewhere go up, customers focus on discretionary spending. It may not happen today or tomorrow, but in a few months, tough decisions will have to be made.
“The consumer is the one who is going to be the most impacted,” he said of the tariffs. “The businesses and retailers are doing their best. But unfortunately, with the way this is rolling out, it leaves very little to no choice for brands to react accordingly, and the consumer is the one who is really going to feel the pain on this stuff.”
Don’t miss another headline from SURFER! Subscribe to the newsletter and stay connected with the latest happenings in the world of surfing. They’re always on the lookout for amusing, interesting and engaging surf-related videos to feature on our channels.
If you are not already a BRA Retail Member, you can easily opt in to either Regular (no cost) or Distinguished ($100/yr.) Membership via this super simple join form