Tariffs and Scuba Gear

For dive stores and manufacturers, current tariff rules are confusing and unpredictable, with no way to know what tomorrow will bring. What impact will it have on your purchases? Should you buy now? How can one decide?

There is no easy answer. Tariffs (duties) are taxes on raw materials and finished products entering the U.S.; the buyer, not the seller, or the shipper, or the nation from which they are shipped, is responsible. The importer pays the tariff.

United States Customs officials determine the value of the arriving goods, compute the tariff (which is a tax), and release the goods once the importer (i.e., the owner) pays the U.S. government. Tariffs are based on the cost of the goods entering, excluding what the importer has paid for shipping and insurance (though they remain the owner's expenses). For example, consider a camera entering the U.S. with the value of $100 (plus his shipping and insurance); a 50 percent tariff adds $50 to the price the owner/importer has paid, and most, if not all, of that is figured into what they charge the distributor or retailer. Ultimately, the individual consumer pays all or part of the tariff.

Most Dive Equipment is Manufactured Abroad

Supply chains in the scuba diving industry are not as complicated as other industries, and some products are manufactured in the U.S. Most are manufactured in Europe, which, as of now, faces lower tariffs than most countries. New tariffs have not gone into effect. Some products are manufactured in Asia, including China.

Huish Outdoors is perhaps the largest U.S. manufacturer of scuba equipment. They own Atomic Aquatics, BARE, Hollis, Oceanic, and Zeagle brands. BARE products are manufactured in Canada and Malta; the rest are manufactured in the United States. While they may import some raw materials, gross tariffs would be small and have a minimum cost impact. Accessories may be imported.

European manufacturers include Mares (part of the Head Group), Cressi, Ocean Reef, Scubapro, Beuchat, and Aqualung (which stopped manufacturing in the U.S. last year). These companies may also use their manufacturing facilities to produce products for lesser brands.

These companies' products are subject to higher tariffs and will likely become more expensive. Mares-USA, for example, is an American company that imports its finished products and pays the tariffs to clear customs. How much of the tariff cost they will absorb and how much will be passed on to the diver remains to be seen.

Tabata Co. Ltd/Tusa is primarily a Japanese company that manufactures its products in Taiwan. They, too, will have to determine how much of the cost increase the American dive market will bear.

Tanks are Home Grown

If you want to replace your aluminum dive cylinders, you will likely not see a difference. U.S. companies Catalina and Luxfer are the leading aluminum tank manufacturers. They may face a slight increase for any aluminum sourced from Canada, but it should not significantly impact prices. You may not be so lucky if you are looking for a steel tank. Faber, the largest producer of steel scuba cylinders, manufactures them in Italy.

Photographers Will be Hit the Hardest

Very few digital cameras are manufactured in the United States. The vast majority are produced in Japan, China, Thailand, and Malaysia, where companies like Canon, Nikon, and Sony have major production facilities. Those prices could jump.

Camera housings and accessories are a mixed bag. Ikelite products are made in the USA. Nauticam, on the other hand, will be seriously affected. They are based in Hong Kong, so the Chinese tariff level applies to them, and the pause does not apply. They replied to my questions in part: "Only products that must touch U.S. soil are tariffed. We have a very flexible supply chain and have pivoted to supply the Canadian, Mexican, and South American markets from other warehouses. U.S. Policy will have no impact on pricing outside of the U.S. markets." And "100 percent of the impact of these tariffs is being passed on to Americans in one form or another, unfortunately. The cost is paid upon import by our U.S. distribution company, Nauticam USA (which is American-owned). Nauticam USA is absorbing as much of the impact as is possible, but much of it will be passed on to consumers."

In the past, I have dealt with the Chinese company LeFeet, which makes underwater scooters. They told me that while they are concerned about tariffs, they will not increase prices. Their U.S. warehouse supports its 122 American distributors and can support this year's dive season without additional stock.

Another company I have dealt with is LASO Technologies, which produces The Pro Shot housing for iPhones and Tidal Sports Line, including masks and other accessories. Their products are manufactured in Taiwan by TUSA. They told me they cannot absorb the 43 percent tariff and would have to increase prices if the tariffs remained in effect.

One overseas manufacturer told me they have increased interest from distributors outside the U.S. They foresee divers trying to avoid tariffs by purchasing new equipment while on a dive vacation or traveling for other reasons.

Should You Buy When Traveling?

You may find much cheaper prices outside the U.S., but there are laws to follow. Travelers who leave the U.S. for more than 48 hours may bring in $800 of purchased goods duty-free. For the next $1000 of goods up to $1,800, the tariff will be four percent, and standard tariff rates apply after that. Same-household families traveling together file a single-family customs declaration, so three family members traveling together can get $2,400 in exceptions. (the U.S. Virgin Islands, Micronesia, Guam, the Northern Marianas, and American Samoa imports are not under U.S. tariff policy.)

It's conceivable that gear you left home with that still looks new when you return will catch the eyes of Customs officials as imports. To avoid that problem, before you leave home, complete Form 4457 -- Certificate of Registration for Personal Effects Taken Abroad to prevent any challenges. This form is valid as long as you own the equipment. At least for now.

Of course, all of this could change tomorrow -- it probably will change tomorrow, for better or for worse. In fact, there is no way of knowing whether foreign-made diving or photo gear will even be available in American markets, let alone whether it will be priced out of reach. For now, chaos reigns.

Charles Davis, a diver for more than two decades, has been a marketing manager and consultant to resorts and tourism associations, has operated a dive tour business, and has written professionally for several scuba publications.