In a recent meeting of the U.S. Senate Committee on Small Business & Entrepreneurship, the challenges facing the outdoor recreation industry were brought to light, particularly in the context of new tariffs and their impact on small businesses. The discussion highlighted the struggles of companies like Eagle Creek, which emphasized the detrimental effects of increased tariffs on their operations and the broader outdoor industry, which supports millions of American jobs.

Eagle Creek's representative articulated the severe financial strain caused by the newly announced tariffs, which could add an additional $580,000 to their costs. This unexpected burden threatens the viability of their business, especially as they navigate a complex global supply chain that is essential for producing their specialized outdoor products. The representative noted that the outdoor industry, valued at $1.2 trillion and responsible for 5 million jobs, relies heavily on imports due to the lack of domestic manufacturing capabilities for these technical goods.

The testimony underscored the urgency of restoring programs like the Generalized System of Preferences (GSP) and Miscellaneous Tariff Bills (MTBs), which had previously provided relief from tariffs on products not made in the U.S. Since these programs expired in 2020, the outdoor industry has incurred over $2 billion in additional duties, significantly impacting their financial stability. Eagle Creek alone has paid $4 million in extra tariffs since 2020, funds that could have been used to bolster their business during these challenging times.

The representative also expressed concern over the unpredictability of tariff policies, which complicates long-term planning for businesses that typically operate on production cycles of 12 to 24 months. The current environment of uncertainty not only affects financial planning but also employee morale, as businesses are forced to make difficult decisions, such as freezing salaries and halting hiring.

The meeting concluded with a call for leadership and stable trade policies that acknowledge the realities of modern supply chains. The outdoor industry is eager to collaborate with lawmakers to find solutions that will allow small businesses to thrive rather than be stifled by punitive tariffs. As the committee continues its discussions, the future of the outdoor recreation sector hangs in the balance, highlighting the need for immediate action to support these vital businesses.