Travis Campbell, the owner of Eagle Creek, expressed grave concerns over the impact of tariffs on small businesses during a recent U.S. Senate Committee on Small Business and Entrepreneurship hearing in Denver.
Having bought the travel gear brand from VF Corp and relocated it to his hometown of Steamboat Springs, Campbell emphasized the importance of small businesses in America and described them as entities that the country should take pride in.
However, he conveyed a stark warning about the current trade landscape under President Donald Trump’s administration.
Campbell elaborated, noting that the tariffs are creating an unsustainable environment for businesses like his.
He currently has $1.8 million worth of Eagle Creek products ready to ship from Indonesia.
Initially, he anticipated that the tariffs on this shipment would amount to approximately $226,000.
Under new tariff proposals, however, those fees could escalate dramatically by an additional $580,000, putting immense pressure on his business operations.
“This kind of shock is simply unsustainable for us,” Campbell asserted, stressing that such trade policies could bring a 50-year-old brand to its knees.
With the recent pause on tariffs providing temporary relief, Campbell is still preparing for financial losses, making cuts to spending and adjusting business projections.
“We, as small business owners, shouldn’t have to operate in uncertainty,” he said, voicing concern about the ongoing effects on his employees and their morale as they grapple with continuous changes.
The backdrop of the hearing was aptly titled “Beyond the Trailhead: Supporting Outdoor Recreation in an Uncertain Economy” and featured presentations from other outdoor industry leaders grappling with similar challenges.
Mike Mojica, the founder and CEO of Outdoor Element in Englewood, shared his perspective on how tariffs have upended the American dream he once envisioned as a small business owner.
Mojica recounted the difficult realities of operating in a tariff-laden environment, indicating that his company has been forced to sell products at a loss, undermining his original goals for sustainable growth.
“Trade policy is supposed to provide business with the certainty we need for long-term decisions, but that certainty is currently absent,” said Mojica, underscoring the shift in focus from thriving to merely surviving in today’s market.
Trent Bush, the founder of Artilect Studio in Boulder, shared his journey in the outdoor apparel industry, highlighting the necessity of outsourcing production abroad to stay competitive.
Bush, with three decades of experience, referred to the high tariffs as a potential threat to his business merely three years after its inception.
“The trade war has sparked an anti-American sentiment that is damaging American brands significantly, especially in international markets,” he lamented.
Both Campbell and other industry leaders voiced frustrations over customer feedback stemming from the tariffs.
Campbell indicated he has heard from Canadian retailers expressing disinterest in continuing to stock Eagle Creek’s products due to tariff-related pricing issues.
Bush also highlighted the improbability of domestic production, arguing that those in power should strongly consider the feasibility of such a shift before imposing harsh penalties on companies that manufacture overseas.
“I could have told them it’s impossible to make our products here,” he said, advocating for a more informed policy approach from lawmakers.
During the hearing, Senator John Hickenlooper, who founded Colorado’s first brewpub decades ago, drew parallels between the current tariff situation and economic destabilization faced by South American countries in the mid-20th century.
Hickenlooper warned of an impending economic downturn, suggesting that the ramifications of current trade policies could lead to structural losses in the economy with long-lasting effects.
“I believe we are at the precipice of a recession that could be severe, affecting businesses for years to come,” he stated, encapsulating the urgent concerns of outdoor industry leaders present at the hearing.
As the discussion unfolded, industry representatives made clear that the future remains uncertain amid the volatile tariff landscape.
Leaders like Campbell, Mojica, and Bush continue to face hurdles, spotlighting the pressing need for a more stable policy environment that supports rather than hinders small businesses.
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