Tariffs, trade, golf and Trump

This blog post will take a broad view of the effect on the golf equipment industry after the decision yesterday to impose a range of import tariffs by the United States President Donald Trump. 

It's likely that the imposition of these taxes on imports into the USA will result in higher equipment prices as leading brands such as TaylorMade, Callaway and Ping are based in the USA with their manufacturing mainly outside the USA. 

We would expect to see the products and components that the large US brands import from Mexico, China and SE Asia experience some volatility in prices over the next few months. This will likely negatively impact both availability and demand. 

None of this accounts for what retaliatory action the UK government might take against the USA for products being imported across the Atlantic. At the time of writing, UK Prime Minister Keir Starmer has reiterated the need for cool heads. This will be absolutely necessary to keep a lid on any equipment price increases. 

The UK's Business and Trade Secretary Jonathan Reynolds today stressed the government’s preference would be to strike an economic deal with the US to mitigate the impact of Trump’s 10% tariff on UK goods. 

This is in direct contrast to a call for the swift imposition of retaliatory tariffs from the EU President Ursual von der Leyen, so the UK government might be well advised (also by serious economists, not only me) to keep quiet and let the two fight it out amongst themselves.

It's unlikely a further tit-for-tat round of tariffs between the USA and EU will have much bearing on golf equipment heading to the UK: a welcome benefit of being outside the EU orbit and now a full member of the CPTPP which includes major manufacturing hubs Japan, Mexico, Vietnam and Malaysia. 

Equally, tariffs could mean manufacturers in countries such as China trying to flood the UK and Europe with non-USA-tariff goods, potentially driving down prices. We're unsure major golf brands will allow the destruction of their intellectual property and value in that manner. 

Electragolf's products are sourced from around the globe, such as Japan for Bridgestone, Mizuno and Honma and the EU for Zoom so these won't be affected by the USA tariffs. Plus, we've been discussing with other suppliers to source directly without them first having to ship to the USA and attract import duties there before heading to the UK. 

The reality is we expect prices to rise and fewer discounts and brand deals along with slower product launch cycles. As ever, we work hard to mitigate cost increases and provide the sharpest prices we can.

It's worth noting that tariffs can be applied incredibly quickly - and also removed just as rapidly - so do keep up-to-date with all the news in this area. We will provide news as and when available. 

I'm always keen to find the positive, so now is an ideal opportunity to buy any equipment or stock up on accessories before the inevitable increases and while the weather is on our side.