The Sports & Fitness Industry Association has enlisted a top Washington, D.C. law firm, which specializes in international trade, customs and export law, to assist it and member companies in opposing tariffs on sporting goods products. The proposed 10 percent tariffs are part of Pres. Trump’s request for $200 billion in new tariffs on Chinese-made products. Of the 6,031 tariff lines identified, 28 lines impact hats, eight hit sports bags and others would affect “sports use” gloves from baseball/softball to batting and hockey, as well as helmet chinstraps/visors and leather or composite leather golf bags.

Representatives from the trade group and David Cohen from Sandler, Travis & Rosenberg (ST&R) conducted a free webinar last week where they outlined the timeline for the potential tariff hit and strategies to combat it, urging SFIA members “to get involved and participate.”

Tom Cove, SFIA CEO, reminded attendees about the organization’s most recent record in such matters, saving members an aggregate $55 million on the renewal and expansion of GSP programs, which now includes backpacks and sports bags, and a potential $45 million in reduced tariffs through the Miscellaneous Tariff Bill legislation that still needs to be passed by the Senate.

There is a July 27 filing deadline for impacted company representatives who want to testify during the three days of scheduled hearings (Aug. 20-23) on the Section 301 proposed tariffs. Meanwhile, August 17 is the deadline for the submission of written comments. The SFIA, with the assistance of ST&R, wants to submit a petition of tariff opposition under its banner for stronger impact and cost efficiencies. The trade group will charge members approximately $2,000 per petition to members and $6,000 to non-members versus an estimated cost of $10,000 if a company was to go it alone in opposing a particular, proposed tariff line item. Cohen says all companies interested in being part of the SFIA petition for items to be included in an exclusion list should have all their respective materials for the document ready by August 13. The remaining timeline includes an August 30 deadline for post-hearing rebuttal comments, and the likely implementation of 10 percent duties on listed products that are not exempted sometime in October.

In the latest Federal Reserve report released last week, 10 of 12 districts reported moderate or modest economic growth so far this summer, but it also pointed out that more manufacturers are concerned about the impact of implemented or coming tariffs, particularly as they might lead to higher product prices or disruptions to their supply chain.

Cohen outlined eight possible strategies to avoid or reduce new duties. Among them: Tariff/Origin Engineering, altering product to alter tariff or change production processing; utilization of Bonded Warehouses, which would defer the duty until the product enters the U.S. for consumption; and De Minimus shipments, by using warehouses in Canada or Mexico to house products under $800 in retail cost for duty-free shipment into the U.S. in an ecommerce order.

Cohen also advised webinar attendees that any future episodes of a U.S.-China trade spat would undoubtedly hit the industry much harder with a $500 billion tariff threshold undoubtedly “creeping closer and closer to footwear, apparel and textiles.”

More than 150 U.S. and Canadian specialty running retailers will have Brooks’ premium shop-in-shop departments following an initial installation of 30 pilot locations by the end of July. Participants in the shop-in-shop effort from the Berkshire Hathaway-owned company will strike a three-year partnership with the Seattle company that will feature the installation of four unique apparel and marketing stories annually to educate runners and an in-store launch event every season.

“In addition to creating a unique experience on the retail floor, our shop-in-shop experience tells a compelling story about our brand and products which we believe will help re-invigorate the running apparel business,” said Mike Billish, VP of U.S. sales for Brooks Running Company.

Initial shop-in-shop options for run specialty stores include either a 12-by-17-foot or 12-by-12-foot execution, but Brooks intends to explore additional footprints to accommodate store needs. JackRabbit currently has nine Brooks shop-in-shops in place with plans to add four more in Spring 2019.

“It is already helping our Brooks apparel sales by showing dominance in the category, better presentations and ease of shopping.” says Kirsten Bowen, SVP/GMM for JackRabbit. “We are seeing fantastic initial success in bras and shorts.”

Keith Davis, owner of Fleet Feet in Winston-Salem, NC believes the Brooks’ shop-in-shop in his store will help it grow its apparel business back to 20 percent of total store revenues.

JackRabbit currently has several shop-in-shop concepts in its stores from key partners.

“The key to success in our store is a resonating customer experience, exceptional service and building community,” reminds Bowen. “…We appreciate Brooks’ commitment to supporting our store and community every day, they are truly committed to connecting and building meaningful relationships with runners.”