U.K.-based outdoor clothing brand Passenger is hitting the pause button on its U.S. business because of the scale and unpredictability of tariffs issued by President Donald Trump’s administration.
The brand rerouted stock that was planned for the U.S. market to Germany, France, the Netherlands, Belgium, and the U.K., according to a news release.
“Passenger has seen rapid direct to consumer growth in the U.S. over the last two years, and has a large pipeline of wholesale orders building from retailers such as REI, Scheels, Backcountry, and outdoor specialty stores,” said CEO Jon Lane. “However, with U.S. tariffs increasing so rapidly and being so volatile, this has turned the U.S. from a great opportunity to a risky proposition.”
Passenger sources many of its recycled fabrics from Asia and has multiple production partners there. Its average duties and tariffs have increased to more than 50%. That means for every shipment of stock valued at $1 million, duties and tariffs will cost $500,000, the company said.
The Trump administration’s trade policy is still in flux, and the outdoor and surf industries are scrambling to keep up. Tariffs from goods in China, excluding some electronics for the time being, have increased to 145% in recent days. A blanket 10% tariff rate is being applied to goods from all countries except Canada and Mexico, where tariffs on goods that aren’t compliant with the United States–Mexico–Canada Agreement (USMCA) are between 10% and 25%.
Passenger Shifts to Europe
Passenger’s net revenue grew by 76% in 2024 to $74 million, up from $43 million in 2023. Europe is its fastest growing region, and it is also popular is the U.K., where it was founded 13 years ago.
Photo courtesy of Passenger.
“Although Passenger was looking forward to scaling in the U.S., given the opportunity in Europe, where we are seeing triple-digit growth in some countries and a stable business environment, we’re confident that this shift in focus will enable Passenger to deliver on its ambitious plans,” Lane said.
“We’ve spoken to all our key retail partners in the U.S. and really appreciate their positive feedback and long-term support. Like many others, we’ll be keeping a close eye on the U.S. over the coming months to see if tariffs are reduced to a sustainable level and if the landscape has become more settled.”
Kate Robertson can be reached at kate@shop-eat-surf-outdoor.com.
