WASHINGTON – While President Trump’s tariff plan continues to cause disruption and confusion across all industries, lobbyists and political insiders called on fitness industry stakeholders to lean into their ties to the preventive healthcare movement to potentially soften the blow.
However, some tariff disruption is inevitable, and it will affect the fitness industry, they warned.
During a fireside chat held this week as part of the Health & Fitness Association’s (HFA) annual “Fly-In” event in Washington D.C., Forbes Tate partner Justin Kintz and Public Strategies Washington managing principal Patrick O’Neill broke down the current tariff situation and how it may impact fitness businesses. The conversation was moderated by HFA vice president of government affairs Mike Goscinski.
Kintz said that in discussions he and his colleagues have had on behalf of the fitness industry, they’ve tried to call government officials’ attention to the idea that fitness should be viewed as a form of preventive healthcare under health and human services secretary Robert F. Kennedy’s “Make America Healthy Again” movement.
“The goal for us has been to try to raise awareness that raising the price on fitness is basically raising the price on healthcare,” said Kintz, a former government affairs executive at Peloton.
No One Knows What’s Coming
For the time being, though, fitness industry stakeholders find themselves in a holding pattern as they seek clarification on President Trump’s tariff plans. Most industries are in the same boat of uncertainty.
“As this new administration and government has gotten set up, our clients are just generally confused about what to make of announcements,” O’Neill said, noting that there are still many “unanswerable” questions when it comes to how the tariff situation will play out.
“Generally, we’re seeing more of a wait-and-see posture” among large multinational companies across different industries, he added.
This could be troublesome for brands in the fitness industry, many of whom might not have the resources to wait out the tariff saga.
“It impacts every level of the value chain, from (equipment) manufacturers to club owners and customers,” O’Neill said.
Supply Chain Creativity May Be Rewarded
Whatever unfolds over the coming months, it seems clear that the Trump Administration is committed to a long-lasting trade war with China, which means tariffs there – currently 124.1% on average – are unlikely to get better any time soon.
Faced with this reality, fitness equipment manufacturers should consider moving some of their supply chains out of China, to the extent possible, Kintz recommended.
“Try to get creative with your sourcing,” Kintz said. “So consider movement around a little bit geographically if that makes sense for you, (and) consider the way that you package certain things together.”
“There are ways to get creative operationally,” he added. “You’ll want to consult with lawyers about that – your trade lawyers, especially.”
Fitness suppliers considering moving out of China should mark early July on their calendars. That’s when the 90-day pause on President Trump’s “reciprocal” tariff plan ends, meaning many countries that were granted a temporary reprieve from those import taxes could soon be subject to tariffs of up to 50%.
O’Neill expects that many countries will strike trade deals with the Trump Administration around this time to minimize the impact of reciprocal tariffs. Those countries could become good landing spots for manufacturers looking to leave China.
At Least Some Tariffs Are Here To Stay
Even in the best-case scenario, though, some tariffs are likely to remain in force during the entirety of President Trump’s second term. That includes the 10% tariff the administration put into place on most U.S. imports last month.
Kintz noted that tariffs are a key priority for the Trump Administration, so he doesn’t expect the president to fully reverse course no matter how murky things get.
“I would get used to that 10% base globally. … That’s probably around for his whole term unless the economy really sinks into a terrible recession,” Kintz said.
