The recent election was a mixed bag for sports & fitness manufacturers and retailers. With all the uncertainty that comes with a Donald Trump presidency, it is difficult to predict what will happen across areas of concern within the industry. Will Trump honor his campaign promises or will the realities of governance create challenges in fulfilling his promises?
Join Bill Sells, Sports & Fitness Industry Association (SFIA) Senior VP of Government Relations & Public Affairs, as he examines the impact this election will have on the following four areas of interest; Trade, Tax, Healthcare and Regulatory Policy. In part one of this series the topic will be trade.
The Trans Pacific Partnership (TPP) is one of the big losers in the Trump victory. The mammoth free trade agreement among pacific rim trading partners will be shelved unless President-elect Trump renegotiates a deal more to his liking. While China is not part of the TPP, candidate Trump repeatedly took aim at China’s monetary policy and the trade imbalance. How he addresses his concerns with China is yet to be decided but could impact future sourcing decisions.
Smaller Trade Policies like Generalized System of Preferences (GSP) will encourage moving production away from China, in-line with President-elect Trump’s position on China.
The Miscellaneous Tariff Bill (MTB) only applies to tariffs on products not manufactured in the U.S. which should not conflict with President-elect’s position.
Manufacturers with production facilities or sourcing in Mexico could be hit with higher import tariffs if President-elect Trump opts to penalize U.S. companies making products there to live up to his campaign rhetoric regarding NAFTA. President-elect Trump has the authority to leave the NAFTA arrangement with six months-notice to Canada and Mexico but there are jobs in critical U.S. industries, like steel, who rely on exports to Mexico which makes it more difficult to walk away.
Coming Soon, Part 2: Tax