Strategies for Importing Recreation Products Amid New Tariffs (Early 2025)

Overview: In the past few weeks, U.S. trade policy shifts have introduced higher import tariffs on goods from China and other countries, raising costs for importers of sporting goods, board games, backyard games, fitness equipment, and other recreational products. Businesses are responding with a variety of strategies to navigate or avoid these tariffs. Below is a summary of the most popular, up-to-date tactics (as of the last three weeks) along with real examples, recent policy changes, and practical tips for small and mid-sized importers.

Recent Tariff Changes Impacting Imports

• New U.S. Tariffs (Feb 2025): The U.S. administration imposed additional tariffs on imports from major trade partners. As of Feb 4, 2025, all goods from China incur an extra 10% tariff, on top of any existing duties (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP) (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP). (Canada and Mexico were also slated for 25% tariffs, but those have been temporarily paused for a month pending negotiations (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP)). These broad tariffs apply to virtually all categories – including toys, sports and fitness gear, board games, electronics, etc. – meaning many recreation products from China now cost more to import (Trump tariffs on China take effect. Here's what may cost more in the US) (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP). No exclusion process is in place, so importers cannot apply for product-specific relief (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP).
• China’s Response: China has retaliated with its own tariffs on certain U.S. exports (e.g. energy products and machinery) (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd). While this doesn’t directly change U.S. import costs, it underscores the ongoing trade tensions that may influence future negotiations (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd).
• De Minimis Rule Under Fire: Many businesses (especially e-commerce) have long used the “de minimis” rule – which allows duty-free U.S. import of goods valued under $800 – to ship products in small packages and avoid tariffs. In early February, the administration moved to eliminate this loophole for China-origin shipments. A sudden attempt to revoke de minimis caused chaos (U.S. Customs got backed up with packages) and was paused to sort out the process (Trump pauses de minimis repeal as packages pile up at US customs | Reuters) (Trump pauses de minimis repeal as packages pile up at US customs | Reuters). Bottom line: the government intends to close this small-package exemption for Chinese goods, so relying on micro-shipments to dodge duties will soon be much harder.
• Trade Negotiations: The new tariffs are expected to remain until a negotiated resolution is reached (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP). There have been talks (for example, U.S. officials engaged with Canada and Mexico, delaying those tariffs (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP)), but as of now, businesses must plan as if the higher tariffs are here to stay. Companies and industry groups are lobbying and seeking relief (for instance, the board game industry’s trade association is advocating in Washington (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back)), but no policy reversals have occurred in the last few weeks.

How Businesses Are Responding to Higher Import Costs

Despite the sudden cost surge, businesses are deploying multiple strategies to mitigate tariffs. Here are the most popular and trending approaches:

1. Shifting Supply Chains to Avoid Tariffs

Diversifying sourcing away from China is the top strategy. Companies that can are moving production or sourcing to countries not hit by the highest tariffs:

• Relocating to Other Asian Countries: Many firms began reducing their reliance on China during the last trade war and have accelerated this. For example, major sportswear and sporting goods brands like Nike and Adidas have cut their China sourcing significantly – Vietnam, Indonesia, Bangladesh and others now produce the bulk of their goods (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs) (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs). On average, many U.S. companies have halved their China exposure since 2018 (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs). This trend benefits countries like Vietnam (which was the “biggest beneficiary” of the earlier tariffs) (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs). By sourcing from alternate Asian hubs with similar manufacturing capabilities (e.g. Vietnam, Malaysia, India), importers can bypass the China-specific duties (Made in America: 5 strategies to respond to potential tariffs). However, if the U.S. imposes tariffs widely (as it has on many countries now), simply switching to another Asian country may still incur some tariff – but likely a lower one than China’s (Made in America: 5 strategies to respond to potential tariffs).
• “Nearshoring” to Neighbors: Some companies are moving manufacturing closer to the U.S. – for instance to Mexico or Canada – to shorten supply lines and reduce dependence on Asia. Prior to the new tariffs, shifting imports from China to Mexico was a common tactic (Trump upended trade once, aims to do so again with new tariffs | Reuters). However, with new 25% tariffs aimed at Mexico and Canada as well, the benefit of nearshoring is less clear-cut (Made in America: 5 strategies to respond to potential tariffs). (The neighbor-country tariffs are on hold for now, but could take effect soon.) If they do, it could nullify much of the cost savings from moving production to North America (Made in America: 5 strategies to respond to potential tariffs). Despite this uncertainty, some businesses still consider Mexico a viable option due to lower labor costs and existing integration with U.S. supply chains – essentially betting that any tariff on Mexican goods might be short-lived or narrower in scope.
• Reshoring to the USA: A bold response by some is to bring manufacturing back to the United States. The logic: avoid import tariffs entirely by making the product domestically. This has gained attention as tariffs rise – it’s seen as an opportunity to rebuild local production and control costs long-term (Made in America: 5 strategies to respond to potential tariffs) (Made in America: 5 strategies to respond to potential tariffs). In the fitness and recreation sector, this could mean manufacturing items like exercise equipment or outdoor games in U.S. factories. Reshoring can also drastically cut shipping times and inventory needs, which improves cash flow (Made in America: 5 strategies to respond to potential tariffs). The downside is higher production costs and the challenge of finding or building facilities and expertise after decades of offshoring (Made in America: 5 strategies to respond to potential tariffs) (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back). For example, the board game industry notes it’s very difficult to shift manufacturing of games to the U.S. quickly – the domestic infrastructure and skilled workforce for making board games at scale simply aren’t sufficient today. Thus, while some companies are investing in U.S. production, it’s typically a longer-term play. A more common approach is a hybrid: keep some overseas production but reshore certain products or components (what one consultancy dubs the “Reshore, Retain, and Reengineer” strategy) (Made in America: 5 strategies to respond to potential tariffs) (Made in America: 5 strategies to respond to potential tariffs).

Real-world example: Amer Sports, owner of brands like Wilson Sporting Goods, reported that it had already diversified manufacturing so that less than 30% of its sourcing is from China – only about 10–12% of its total revenue is tied to Chinese-made goods sold in the U.S. (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs). This gives them flexibility to shift orders to factories in other countries if needed. Many apparel and gear companies have similarly brought their China sourcing down to a small share (around 15% for Adidas and Under Armour) through years of work (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs), so they’re less exposed to the new tariffs. On the other hand, industries that remained heavily China-dependent, like board games, are now urgently exploring alternatives. The CEO of board game giant Asmodee said they are looking at options to balance manufacturing across the U.S., Europe, and China in response to the tariffs (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back). Still, given China’s unbeatable combination of low costs and specialized expertise in board game production, moving even part of that manufacturing is a complex challenge (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back).

2. Tweaking Product and Import Tactics (“Tariff Engineering”)

When outright relocation isn’t possible or enough, businesses are getting creative with what and how they import:

• Altering the Product or Its Supply Route: Importers can sometimes legally change a product’s country of origin or category to qualify for lower duties – a practice called tariff engineering. For instance, a company might import components or unassembled kits rather than finished goods, if the parts carry a lower tariff. They then do final assembly in the U.S. or a tariff-friendly country. This way, a “Made in USA” label can apply (or at least Not Made in China), reducing or eliminating the China tariff. Another tactic is performing an extra manufacturing step in a third country: if you send a China-made item to, say, Vietnam for substantial processing or assembly, it might legally become a Vietnamese-origin product, no longer subject to the China tariff (10 Strategies to Mitigate New Tariffs in 2025). (U.S. Customs uses a “substantial transformation” test to decide a product’s origin (10 Strategies to Mitigate New Tariffs in 2025).) Businesses are actively exploring such workarounds – essentially routing goods through different countries or altering them enough to avoid the highest duties. Example: One Chinese manufacturer told CNBC that if certain products are on the tariff list, they will simply export other products not hit by tariffs, or modify products, to keep selling to the U.S. (Trump China tariffs: Manufacturers prepare for higher costs - CNBC).
• Reclassifying Products (HTS Code Audits): Another straightforward step is to double-check the tariff classification codes used for your goods. Tariffs apply to specific categories in the Harmonized Tariff Schedule (HTS). Misclassification can cause overpaying. By ensuring each item has the correct code – or finding an alternate valid classification that carries a lower rate – importers can save money (10 Strategies to Mitigate New Tariffs in 2025). For example, a certain fitness device might fit under two similar HTS descriptions, one of which wasn’t flagged for the extra tariff. Companies are auditing their import documentation now to catch any such opportunities (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd). Of course, classification must be accurate and defensible, but the HS system is complex and sometimes an item legitimately straddles categories. Optimizing these codes is a quick win to avoid unnecessary duties.
• Adjusting Import Timing and Inventory (“Tariff Timing”): In the rush before the new tariffs took effect, some businesses stockpiled inventory. By importing a large quantity before the tariff hike date, they temporarily avoided the extra cost (10 Strategies to Mitigate New Tariffs in 2025). For example, a retailer might have brought in months’ worth of board games or exercise equipment in January to beat the February 4 tariff start. This is a short-term solution (it only delays the pain until that inventory runs out), but it buys time. Similarly, companies can use bonded warehouses or Foreign Trade Zones (FTZs) to delay duty payments (10 Strategies to Mitigate New Tariffs in 2025) (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd). In a bonded warehouse/FTZ, your imported goods can be stored or even lightly processed without paying customs duties until they officially enter U.S. commerce. This helps manage cash flow and, if tariffs get repealed or reduced while goods are in storage, you might escape the fee altogether. It’s a form of duty deferral that some importers are using more intensively now to cope with the higher costs.

3. Financial Tactics: Cutting Costs and Sharing the Burden

Many companies are also responding on the financial and contractual side rather than just the supply chain side:

• Using the “First Sale” Rule: One cost-cutting measure is to reduce the declared customs value of goods legally. Under the First Sale rule, if there are middlemen in your supply chain, U.S. customs law allows the import duty to be based on the price from the first sale in the chain (e.g. the factory price), rather than the final price you pay the intermediary (10 Strategies to Mitigate New Tariffs in 2025). This only works under specific conditions (you need documentation of a bona fide sale for export, etc.), but many importers are now considering it. By basing duties on a lower initial price, the tariff percentage bites a smaller dollar amount (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd). For instance, if a board game factory in China sells to a trading company for $5 and that trader sells it to a U.S. importer for $7, a 10% tariff could be applied to $5 instead of $7 – saving money. Some companies are restructuring their purchasing arrangements to take advantage of this rule, effectively lowering the taxable value of their imports (all within legal bounds).
• Renegotiating Contracts and Prices: Importers are also looking at their contracts with suppliers and with their own customers. Many supply contracts have force majeure or change-in-law clauses that can be invoked when unforeseen tariffs hit. Businesses are going back to suppliers to negotiate cost-sharing – for example, asking the manufacturer for a discount to offset the tariff, or splitting the difference in some way. They are also building in tariff-adjustment clauses for the future (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd). On the sales side, companies are raising prices for end customers in a measured way. This isn’t avoiding the tariff, but it’s a way to pass on some of the cost rather than absorbing it all. Case in point: Amer Sports (owner of Wilson and other sports brands) said if new tariffs come, price increases will be the primary tool they use to handle the impact (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs). Spreading the cost across consumers is one way businesses stay viable, though it risks reducing demand.
• Cutting Operational Costs (“Reengineering”): To offset tariff expenses, companies are finding efficiencies elsewhere. This can mean redesigning products to use cheaper materials, streamlining manufacturing processes, or reducing overhead. One analysis noted that tariffs are prompting firms to reengineer their operations, looking for any cost savings to preserve their margins (Made in America: 5 strategies to respond to potential tariffs). For example, a fitness equipment company might simplify a treadmill’s design so it can be assembled with fewer imported components, or a backyard toys importer might consolidate shipments to use container space more efficiently (cutting per-unit freight costs). These internal tweaks, while not directly changing the tariff, can free up funds to counteract the duty hike.

4. Leveraging Trade Programs and Loopholes (While They Last)

There are also various government programs and lesser-known mechanisms businesses are tapping into:

• Free Trade Agreements & Duty Drawback: If products can qualify for any existing free trade agreement rules of origin, importers absolutely use that. (For instance, some sports equipment might be assembled in a partner country like South Korea or Australia which have FTAs with the U.S., making them tariff-free or lower-duty.) Additionally, duty drawback – a refund of duties for goods that are later re-exported – is a tool for those who export a portion of their imports. A company importing recreational gear and then exporting some to Canada, for example, can later claim back 99% of the U.S. tariffs paid, under normal rules. However, note: the new Feb 2025 “extra” tariffs on China are not eligible for drawback refunds (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP), an unusual restriction. This limits the usefulness of this tactic for the newest tariffs, though regular duty drawback still applies to normal customs duties.
• Temporary Importation Under Bond (TIB): If items are imported only for a short use (say, demonstration at a trade show or for repair) and will be re-exported, businesses use TIB to avoid tariffs entirely (10 Strategies to Mitigate New Tariffs in 2025). This is niche but useful for certain recreational products – e.g. bringing in samples or equipment for an event and then sending them back out.
• Foreign Trade Zones / Bonded Warehouses: As mentioned earlier, these are special facilities where goods aren’t subject to tariffs until they exit into U.S. commerce (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd). Companies importing large volumes of games or sports gear might bring them into an FTZ, and then withdraw them in batches to officially import (and pay duty) only as needed. If tariffs are lowered before all goods leave the FTZ, the remaining goods would incur the lower rate. This strategy smooths out cash flow and offers flexibility. It’s particularly helpful for small businesses that can’t afford a huge duty bill upfront on an entire shipment – they can store inventory in an FTZ and pay tariffs gradually.
• Advocacy and Exemption Efforts: While not a “strategy” to avoid tariffs in the short run, it’s worth noting that industry coalitions are actively fighting these tariffs. For example, the Game Manufacturers Association (GAMA) for board games has budgeted for advocacy and even hiring a lobbyist to push for relief or exclusions (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back). In 2019, similar groups successfully got many hobby products exempted from tariffs (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back)). But this time the tariffs are broader. If any exclusion processes or policy changes emerge (such as carve-outs for certain products essential to small businesses or national security), trade groups want to take advantage. Importers should stay tuned to any government announcements for tariff exclusions or adjustments. (As of now, no exclusion application process exists for the new round of tariffs (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP)), but this could change under pressure.

Case Studies and Examples

To illustrate how these strategies play out, here are a few real examples from the past three weeks:

• Sporting Goods & Apparel Giants: Large sportswear companies like Nike anticipated tariff risks long ago. By late 2024, Nike, Adidas, and others had shifted much of their shoe and apparel manufacturing to Vietnam and other countries, drastically cutting how much they import from China (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs) (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs). When new tariffs were announced, these firms were relatively prepared – Nike’s CFO noted that sourcing from China to the U.S. is now only ~10% of their business, so the impact of tariffs would be limited and could be managed with minor price tweaks (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs). Essentially, their strategy was early diversification, which is now paying off. Smaller sports equipment brands have followed suit where possible – for example, many U.S. bicycle and camping gear companies moved production to Taiwan or Vietnam during the last trade war, which cushions them against this new tariff wave.
• Board Game Industry in Crisis Mode: In contrast, the board game industry relies heavily on Chinese manufacturing for the high-quality, cost-effective production of games (from cards and boards to miniatures). The proposed tariffs of up to 80% on games from China sent shockwaves through this sector (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back). A $50 game could shoot up to $90 in retail price just due to tariffs, which many fear could collapse demand. Since it’s impossible to relocate manufacturing overnight (there are only a handful of suitable factories outside China), board game publishers are scrambling. Short-term responses include delaying new product launches, rushing shipments of games before tariffs hit, and planning price increases for 2025 releases. Long-term, companies like Asmodee are looking at shifting some production to the U.S. or Europe (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back), despite the challenges. The industry association (GAMA) is actively lobbying for exemptions or reductions (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back). This case shows that when tariffs target a niche that’s heavily China-dependent, the immediate strategy might be political (advocacy) and customer-facing (price hikes), because supply-chain fixes are tough in the short run. Some game makers have even said they’ll do “everything in their power” to fulfill orders – eating costs or finding any workaround – to keep promises to customers (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back).
• Small Business Example – Ice Cream Shop: Tariffs don’t just hit big manufacturers; even small importers feel it. Consider Penny Ice Creamery, a small business in California that imports specialty ingredients and equipment. They source whimsical sprinkles from Canada to top their ice cream, and they plan to buy more freezers and blenders (made in China) as they expand. Now both those plans are pricier. The 25% tariff on Canadian goods would even apply to something as small as sprinkles. “Tacking a 25% import tax on even something as small as that can damage a small business like his,” said the co-owner, noting that sprinkles add only a few cents profit per scoop (Small Business News | Small Business Majority). His strategy? Unfortunately, he can’t easily find a U.S. source for those unique sprinkles, so he’ll likely pass the cost onto customers – meaning slightly higher ice cream prices (Small Business News | Small Business Majority). For the needed appliances from China, the business might delay those purchases or seek second-hand equipment. This story is echoed by many small businesses across the country: from boutique toy retailers to fitness equipment resellers, margins are thin, so a tariff forces a combination of price increases, cost cutting, or finding alternate suppliers (if possible) to survive.
• E-Commerce Retailers (Shein/Temu): Fast-fashion and online marketplaces that ship directly from China (like Shein and Temu) have long avoided U.S. import duties by sending items as individual low-value packages. Each parcel to a consumer was under the de minimis $800 limit, so it came in tariff-free. With the recent move to close that loophole, these companies faced a huge disruption – at one point USPS even stopped accepting packages from China due to the rule change (Trump pauses de minimis repeal as packages pile up at US customs | Reuters). The policy is in flux, but these firms are now exploring setting up distribution in other countries or shipping in bulk to U.S. warehouses (which would incur duties) rather than direct-to-consumer. It’s an example of how regulatory changes can upend a strategy overnight, forcing businesses to adapt logistics rapidly. (For now, the de minimis rule still holds, but likely not for long (Trump pauses de minimis repeal as packages pile up at US customs | Reuters)).

Practical Tips for Small and Medium-Sized Importers

For smaller businesses importing recreational or fitness products, massive supply chain overhauls can be daunting. But there are tactical steps you can take now to reduce the impact of tariffs:

1. Audit Your Imports: List all your imported products and identify their country of origin and tariff classification (HTS code). Ensure the origins are correct – if any item is partly made in a non-tariffed country, work with suppliers to document that (you might avoid a tariff if it’s substantially transformed outside China) (10 Strategies to Mitigate New Tariffs in 2025). Double-check HTS codes for accuracy (10 Strategies to Mitigate New Tariffs in 2025)); a small change in classification (if legitimate) can sometimes lower the duty rate.
2. Explore Alternative Suppliers: Contact suppliers in other countries (Vietnam, India, Thailand, Mexico, etc.) to compare costs. You might find a producer for your backyard game or fitness accessory in a country that isn’t subject to the steep China tariff (10 Strategies to Mitigate New Tariffs in 2025). Even if the base price is a bit higher, the overall cost could be lower after tariffs. Many businesses are qualifying backup suppliers now, so they’re not captive to one country’s risks.
3. Consider Partial Assembly or Component Imports: Instead of importing a finished product at full tariff, see if you can import it in parts or knock-down form. You can then assemble the product in the U.S. (or a low-tariff country). This tariff engineering approach can change the tariff category and reduce duties (10 Strategies to Mitigate New Tariffs in 2025). For example, if a certain exercise machine from China has a high tariff, importing the frame and components separately (classified as parts) and assembling them stateside might carry a lower total duty. Be sure to consult a customs expert to do this legally.
4. Leverage Duty-Saving Programs: If you import and re-export goods (even occasionally, or to sell on Amazon Canada/Mexico), look into duty drawback refunds. For ongoing imports, consider using a bonded warehouse or FTZ if you need to store inventory – you’ll delay paying tariffs until you actually need the products (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd). This can be a lifesaver for cash flow. Also, keep shipments under $800 when feasible to use the de minimis rule while it’s still available (though plan alternatives for when that door closes).
5. Use the First Sale Rule: Work with your suppliers and possibly a customs broker to see if you qualify for first-sale valuation. If you buy through an intermediary or trading company, set up the transaction so that U.S. Customs can use the original sale price from factory to intermediary for duty calculations (10 Strategies to Mitigate New Tariffs in 2025). Document everything (invoices, proof of export, etc.) to satisfy Customs requirements if you go this route (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd).
6. Negotiate with Partners: Don’t bear the tariff costs alone if you can avoid it. Talk to your overseas suppliers – some may agree to split the cost or offer a discount now that tariffs have increased (especially if you’re a long-term customer). Likewise, communicate with your buyers (retailers or distributors) about modest price increases or surcharges due to tariffs. Many U.S. customers are aware of the situation, and it’s better to be transparent than to silently suffer losses. If you have contracts, see if a tariff trigger allows price adjustments (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd).
7. Adjust Pricing and Budgeting: Sadly, paying some tariff may be unavoidable. Prepare to adjust your prices accordingly. Small increments spread across many units might be acceptable to consumers – e.g. a $20 backyard game might go to $22, which could cover a 10% tariff. Explain to customers if necessary that the increase is due to tariff policy. Internally, budget for higher landed costs so you aren’t caught off guard. Trim other expenses if possible – every bit helps offset the duty.
8. Stay Informed and Agile: In this rapidly changing trade environment, keep a close eye on news and updates. Tariff rates and policies can evolve (for instance, if negotiations progress, some tariffs could be reduced or if relations worsen, they could increase). Subscribe to industry newsletters or alerts from trade associations related to sporting goods or toys. Being informed will let you time your shipments better (e.g. ship before a known tariff hike) or capitalize on any new exemption. And have a contingency plan – if another tariff hike is rumored, know what you’ll do (such as fast-tracking an order early, or shifting orders to a different country).

By taking these steps, small and medium businesses can cushion the blow of tariffs. Every strategy – whether it’s finding a new supplier, cleverly classifying a product, or negotiating shared costs – can chip away at the extra duties and help you stay competitive.

Conclusion

The latest tariff increases have undoubtedly made importing recreational products more challenging and expensive. However, as we’ve seen in the past few weeks, businesses are innovative and resilient in adapting to these challenges. The key trends include diversifying supply chains away from high-tariff countries (especially reducing dependence on China), employing clever import tactics like tariff engineering and first-sale valuation, and where necessary, passing some costs to consumers or finding internal efficiencies. Companies both large and small are rethinking their strategies – from giant sports brands shifting production to Vietnam (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs), to board game publishers considering U.S./EU manufacturing despite the hurdles (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back), to mom-and-pop importers raising their prices by a few cents to stay afloat (Small Business News | Small Business Majority).

Importers should also keep abreast of policy changes. Trade dynamics can shift with negotiations or further retaliatory measures. For now, the practical advice is to be proactive: plan for the worst (higher costs) but take every step to mitigate those costs. This might mean making hard decisions like changing long-time suppliers or investing in new operations, but it can also open opportunities – for example, improving your supply chain resilience or marketing your product as “locally made” if you reshore production.

In summary, while tariffs are adding pressure, businesses have a toolkit of strategies to respond. By combining these tactics – from supplier diversification and smart importing practices to savvy financial moves – companies can optimize their import process and lower costs even in a tough tariff environment. The landscape is evolving, but with careful planning and adaptation, importers of sporting, fitness, and recreational goods can continue to thrive despite the headwinds (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd).

Sources:

• U.S. trade policy announcements and analysis (Jan–Feb 2025) (United States Imposes Additional Tariffs on All Imports From China, Additional Tariffs on Canada and Mexico Paused for One Month | Insights | Sidley Austin LLP), (Trump upended trade once, aims to do so again with new tariffs | Reuters), (Trump pauses de minimis repeal as packages pile up at US customs | Reuters)
• Legal and logistics expert guidance on tariff mitigation (10 Strategies to Mitigate New Tariffs in 2025), (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd), (Navigating Trump’s New Tariffs: Impact Analysis… | Frost Brown Todd)
• News on how companies like Nike, Adidas, Amer Sports adapted their supply chains (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs), (Sportswear Retailers Are Ready for Round 2 of Trump Tariffs)
• Reports on industry-specific impacts (board games, small businesses, e-commerce) (“Despair. Hopelessness. Frustration. Sadness”: board game professionals fear for industry’s future under “reckless” Trump tariffs – but GAMA plans to fight back), (Small Business News | Small Business Majority), (Trump pauses de minimis repeal as packages pile up at US customs | Reuters)
• Professional analyses on strategies for importers (NatLawReview, Frost Brown Todd, Accordion consulting) (10 Strategies to Mitigate New Tariffs in 2025), (Made in America: 5 strategies to respond to potential tariffs)