A newly released survey of nearly 200 surf and outdoor executives highlights the negative impact of tariffs on the industry. Eighty-one percent of respondents reported that tariffs imposed by the Trump Administration will reduce consumer spend in the sector.
“The state of the industry is not on solid ground currently, and consumer confidence is not soaring,” said a respondent. Half of those surveyed were CEOs or owners.
The survey, conducted by Shop Eat Surf, reported that, in response to tariffs, 61.5 percent of respondents plan to slightly increase prices and 19 percent will significantly increase prices. As a result, 54 percent of respondents said they are expecting revenue in Q4 to be the same or less compared to the same period last year.
Similarly, three-quarters of those surveyed said revenue forecasts had either been unchanged or downgraded for 2026.
“(We are implementing) cost savings, focusing on profitable parts of business, evaluating (our) supply chain, and reducing investment until we have more certainty around the tariffs for China,” one respondent said.
Travel and events, inventory/supplies, and marketing were the expenses that would see the most spending cuts, according to the survey.
The effects of tariffs have disrupted supply chains, which retailers say are hurting their business.
“Our suppliers need to start supporting their retailers rather than competing against us with discounts and promotions that only the suppliers can sustain due to their vertical margins,” a retailer reported. “Offering free shipping, 10 percent off initial orders, site-wide discounts – it’s unsustainable.”
The effects have naturally trickled down to the workforce – a trend seen across the broader economy, not just in the surf industry.
Fifty-five percent of respondents said they will only fill essential positions for now, while 31 percent said they aren’t hiring and eight percent are laying off staff.
Only five percent said they are looking to increase headcount.
“We’ve had to lay off five employees, directly tied to the incremental tariff costs that we will incur over the next 12 months,” a respondent said.
Even with the uncertainty, 36 percent of respondents are somewhat optimistic about 2026.
“If we can get through the season without another 9/11 or COVID-style event, everything will be fine,” one respondent concluded.
