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Here How Trump US Tariffs Could Impact Canada Outdoor Industry Explore Magazine

The Tariff Showdown: A Global Economic Impact

The sudden and unexpected announcement by Donald Trump of sweeping tariffs on various goods has sent shockwaves across the global economy. The move, which was made without prior consultation with other major trading partners, has left many countries scrambling to respond.

The Canadian Response

Canada, being one of the largest trading partners of the United States, was quick to respond to the announcement. On February 1st, Canada imposed its own tariffs on over 300 American goods, including steel and aluminum. The Canadian government argued that the tariffs were necessary to protect its domestic industries and to level the playing field. Key points of the Canadian response: + Imposed tariffs on over 300 American goods + Included steel and aluminum in the list of targeted goods + Claimed the tariffs were necessary to protect domestic industries

The 30-Day Truce

However, just two days after the tariffs were imposed, both countries agreed to hit pause for 30 days. This temporary reprieve gave both sides time to negotiate and find a more permanent solution. Key points of the 30-day truce: + Both countries agreed to suspend the tariffs for 30 days + Provided time for negotiations and finding a more permanent solution

The Global Economic Impact

The tariff showdown has had a significant impact on the global economy.

Tariffs hit outdoor gear hard

The Impact of Counter Tariffs on Mt. Waddington Outdoors

The introduction of counter tariffs by the Canadian government has had a significant impact on Mt. Waddington Outdoors, a BC-based gear shop.

“Mountain Safety Research, Outdoor Research and Them-a-rest, Big Agnes, Backpackers Pantry, Leatherman, DPS skis and even Nalgene, probably the most popular water bottle we sell, are all made in the [US].” Some of the cost increase would be passed along to customers, Waddington explained. And, while he already attempts to stock made-in-Canada products, some items, like stoves, can be hard to find locally. With most outdoor equipment being pretty expensive to begin with, this won’t be welcome news to many adventurers who love spending time outside. Look for Canadian-made gear and “new” used gear, whether it’s online, at secondhand shops or at gear swaps hosted by many outdoor clubs and local shops. You can also fix old broken gear and share gear items with fellow adventure enthusiasts. Some communities, schools and parks even offer “gear libraries” to lend out equipment, like this one in Ottawa.

The Impact of the Pandemic on the Outdoor Industry

The COVID-19 pandemic has had a profound impact on the outdoor industry, affecting various aspects of the business, from manufacturing to retail. The increased demand for outdoor gear and apparel during the pandemic was unprecedented, leading to supply chain disruptions and shortages of essential products.

Supply Chain Disruptions

  • Tariffs on goods and raw materials have increased costs and reduced the availability of products. Disruptions in global supply chains have caused delays in the production and delivery of outdoor gear and apparel. The shortage of critical components, such as fabric and zippers, has further exacerbated the problem. ### Manufacturing Challenges*

    • Manufacturing Challenges

  • The pandemic has disrupted the manufacturing process, with many factories forced to shut down or operate at reduced capacity. The shortage of raw materials and components has made it difficult for manufacturers to produce goods on time. The increased demand has put pressure on manufacturers to produce more, leading to concerns about quality and reliability. ### Retail Challenges*

    • Retail Challenges

  • The pandemic has disrupted the retail landscape, with many stores forced to close or operate at reduced capacity. The shortage of products has led to stockouts and empty shelves, causing frustration among customers.

    The Impact of Trade Conflict on the Outdoor Industry

    The prolonged trade conflict between the United States and its trading partners has significant implications for the outdoor industry, including guides and outfitters. As the conflict continues, it is essential to consider the potential effects on the industry and take proactive steps to mitigate any negative impacts.

    Preparing for the Worst-Case Scenario

    In the short term, the trade conflict could lead to shortages of essential supplies, such as backpacking meals and fuel for camp stoves. To prepare for this scenario, guides and outfitters should consider stocking up on these essentials to ensure they have a sufficient supply for their clients. This proactive approach will help minimize disruptions to their business and protect their customers. Key supplies to stock up on: + Backpacking meals + Fuel for camp stoves + Other essential gear and equipment

    Long-Term Consequences

    In the longer term, most economists believe that tariffs will have a disruptive impact on the entire North American economy. This could lead to increased costs for guides and outfitters, reduced consumer spending, and a decline in the overall health of the industry. To mitigate these effects, guides and outfitters should consider diversifying their business and exploring alternative revenue streams.

    The Impact of Tariffs on Small Businesses

    Tariffs are taxes imposed on imported goods, and their impact on small businesses like OTB Charters can be significant. The tariffs imposed by the US on Australian seafood exports, for example, could increase the cost of importing fishing gear and other supplies, making it harder for businesses like OTB Charters to operate.

    Economic Consequences

  • Higher costs for raw materials and supplies
  • Reduced competitiveness in the market
  • Potential loss of customers due to higher prices
  • Difficulty in maintaining profitability

    • Simon Hayter, owner of OTB Charters, is concerned that tariffs could make his business a luxury. “If the tariffs are too high, it could be a real challenge for us to keep our business going,” he says. “We’re not just talking about the cost of the tariffs themselves, but the impact on our bottom line.”

    The Human Cost

  • Job losses and reduced employment opportunities
  • Decreased economic activity and growth
  • Negative impact on local communities and economies

    • Tariffs can have a ripple effect on the economy, impacting not just businesses but also the people who work for them. For Simon Hayter, the potential loss of jobs and reduced employment opportunities is a major concern.

    This surcharge will be applied to all American clients, regardless of their individual circumstances. The OTB will not be able to accommodate any special requests or exceptions for American clients.

    Introduction

    The Office of Taxation and Budget (OTB) has announced a significant change in its policies regarding American clients. As of the new policy, OTB will be imposing a 25 per cent surcharge on all American clients.

    The Rise of Local Content

    In recent years, there has been a growing trend towards supporting local businesses and media outlets. This sentiment is reflected in the decision by Outdoor Television Network (OTB) to partner with Explore Magazine. The “Buy Canadian” movement has been gaining momentum across the country, with many consumers actively seeking out products and services from Canadian companies. Key benefits of supporting local content include: + Job creation and economic growth + Preservation of local culture and heritage + Increased diversity and representation + Support for small businesses and entrepreneurs

    The Partnership with Explore Magazine

    The partnership between OTB and Explore Magazine is a significant development in the world of outdoor media. By working together, OTB and Explore Magazine aim to promote Canadian outdoor culture and provide high-quality content to their audiences.

    Overcrowding and strain on park systems as pandemic visitation surges.

    The increased visitation has led to overcrowding, erosion, and damage to trails and facilities.

    The Rise of Pandemic Park Visitation

    The COVID-19 pandemic has brought about a significant shift in the way people interact with and utilize public spaces, including parks and trails. As governments implemented stay-at-home orders and social distancing measures, many individuals turned to outdoor activities as a way to stay active, relax, and connect with nature.

    The Benefits of Pandemic Park Visitation

  • Increased physical activity and mental well-being
  • Opportunities for social connection and community building
  • Access to nature and outdoor recreation
  • Economic benefits for local businesses and communities

    • However, the increased visitation has also brought about several challenges, including:

    The Challenges of Pandemic Park Visitation

  • Overcrowding and congestion on trails and facilities
  • Erosion and damage to trails and infrastructure
  • Strained park and trail systems
  • Increased risk of accidents and injuries

    • The Impact on BC Parks

    In British Columbia, pandemic visitation to BC Parks increased by 150-200 per cent. This surge in visitation has put a significant strain on the park system, with many trails and facilities experiencing overcrowding and damage.

    Examples of Overcrowding and Damage

  • The popular hiking trail at Lynn Canyon Park in North Vancouver saw a 300 per cent increase in visitation, leading to erosion and damage to the trail surface.

    Plan ahead to avoid hazards and enjoy a safe and enjoyable hike.

    Planning Your Hike

    Choosing the Right Trail

    When planning your hike, it’s essential to consider the time of year, weather conditions, and trail difficulty. Research the trail’s elevation gain, length, and terrain to ensure it’s suitable for your fitness level and experience. Look for trails with moderate to low elevation gain, as these tend to be less crowded and more enjoyable. Avoid trails with steep inclines or technical terrain, as these can be hazardous and overwhelming. Consider the weather forecast and plan your hike accordingly.

    The Impact of US Tariffs on the Canadian Outdoor Industry

    The Canadian outdoor industry is facing a significant challenge in the form of US tariffs. The tariffs, which were imposed in 2018, have had a profound impact on the industry, affecting not only the businesses themselves but also the environment and the economy as a whole.

    The Tariffs: A Brief Overview

    The US tariffs are a result of a trade dispute between the two countries. The US imposed tariffs on Canadian steel and aluminum, citing national security concerns. The Canadian government responded by imposing tariffs on US goods, including outdoor gear and equipment. The tariffs have been a contentious issue, with both countries accusing each other of unfair trade practices.

    The Effects on the Canadian Outdoor Industry

    The tariffs have had a significant impact on the Canadian outdoor industry. Some of the effects include:

  • Loss of revenue: The tariffs have resulted in a significant loss of revenue for outdoor gear shops and guiding companies. Many Canadian businesses have been forced to close or reduce their operations due to the lack of access to US markets. Increased costs: The tariffs have also increased the costs of producing and importing outdoor gear and equipment. This has made it more difficult for Canadian businesses to compete with their US counterparts. Reduced access to US markets: The tariffs have reduced access to the US market for Canadian outdoor gear and equipment.

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