For small business in the outdoor and surf industries, the U.S. trade wars and ensuing tariffs are more than disruptive – they could be existential crisis.
We spoke with Outdoor Element Co-founder Mike Mojica and Jen Rainnie, the CEO of Malvados, who both manufacture a large proportion of their products in China, to find out how they’re navigating the constantly shifting trade policy and increasing tariffs.
Outdoor Element Pauses Production, Reduces Workforce
The last time we checked in with Mike Mojica, the co-founder of outdoor knives and multitool maker Outdoor Element, he was celebrating. His small brand, which was built in part through programs such as REI Co-op’s Path Ahead Ventures, had doubled sales in 2024, and after years of grinding, he’d finally moved the business out of his garage and into a warehouse. And he was ready to hire a sales team to grow the brand in 2025.
But after President Donald Trump’s administration increased tariffs on products from China to as high as 145% earlier this month, everything has changed.
When Mojica proposed a price increase of 13% on his products to offset the tariff increases to one of Outdoor Element’s key wholesale accounts, the retailer balked and cancelled. Mojica is still trying to navigate price increases with his other wholesale accounts but has paused orders from China.
“I’ve made cuts, and I’ve asked employees to work half as much,” Mojica said. “I asked my wife to come in and work for free indefinitely, which she was more than happy to help out.”
Last week, the stock market recovered slightly at the news that the Trump administration may be softening on his stance on tariffs on Chinese products. In the meantime, American brands like Mojica’s are struggling to stay afloat.
“I’m not Apple, who can afford to air freight 600 tons the day before the tariffs go in place,” Mojica said. “I don’t have $2 billion in my cash flow account where I can make that strategic move. I’m like 90% of the small businesses that are scrappy. We’re trying to make it.”
Production on Pause
Before the most recent tariff increases, when the Trump administration had stacked an additional 10% tariff on goods made in China, Mojica broached the topic of increasing prices with some of his wholesale partners. Specialty retailers have been amenable, he said.
But with this latest round of tariff increases, Mojica said it’s not feasible.
“What I fear is that there will be a bunch of shops with no product very soon, because many of us have made these hard decisions,” Mojica said. “I can’t afford to bring it over here, because I’ll make no margin.”
Mojica will rely on the product he has stored in his warehouse, and he’ll work to grow Fiber Light, the fire tinder brand he acquired last year, because it’s made in the U.S. And he’s investigating new ways to reach customers online, such as demonstrating how his gear works on the live shopping app Whatnot. And he’s begun working to extend payment terms on costs such as his intellectual property firm to improve cash flow.
And eventually, if the current tariffs stay in place, he may start manufacturing outside of China, but the capabilities aren’t quite ready, meaning production of his gear is on pause. His Chinese manufacturing partner acquired property in Vietnam and has been working to get that facility up and running. But it’s also not clear what tariffs will apply to products produced outside of China either. Those tariffs are on pause until July.
Collaborating with Small Business Community
Mojica said the ongoing trade war hurts on a personal level, too.
“They have great working conditions, and we have great relationships with them,” he said of his Chinese manufacturing partners. A product manager visited Mojica in Colorado recently and even stayed at his home.
“We treat each other like family,” he said. ‘When I go there, I eat with their families, and it’s just this beautiful relationship. These are people with kids and grandparents just like us.”
In addition to getting moral support from his community church, Mojica is leaning on professional associations who share information about how to navigate this uncertain time. He recommends Campfire Co-op and Founded Outdoors, two groups for business leaders and entrepreneurs.
“I think power and motivation and discipline come in when you have a collective group to bounce ideas off of, to share wins, to celebrate each other, and then also to lift each other up when things get hard,” he said. “That’s what’s going to be critical to carry us through moments like this.”
Malvados Pauses U.S. Wholesale Orders
Jen Rainnie, the CEO of British Columbia-based Malvados, said she’s paused all wholesale orders from China to the U.S. for the time being, except for pre-booked orders already in its U.S. warehouse. The 145% tariff on top of the footwear brand’s regular import duties add up to a total tariff of 198% or more on its summer collection. As a result, the upcoming summer delivery will go to its Canadian warehouse instead.
“Unfortunately, absorbing these additional costs isn’t sustainable for us, and we don’t believe it’s fair to pass them on to our retail partners – especially given the current economic uncertainty,” Rainnie said. As of May 2, when the de minimis rule is eliminated, Malvados will continue to ship DTC to U.S. consumers, but we will need to include the tariff-related costs in the pricing for those orders.
Malvados’s U.S. retail partners have been supportive, Rainnie said.
“We’ve been open and transparent about the challenges we’re facing and how we’re managing them, and their response has been incredible,” she said. “Many of our accounts chose to stock up ahead of the de minimis rule change, which has been a huge help and is something we’re genuinely grateful for.”
Pausing U.S. wholesale orders will take a toll, however.
“The U.S. accounts for just over 50% of our business, so the implications are significant,” Rainnie said. “While we’re grateful that most of our spring product has already been shipped to our U.S. retail partners, our summer and in-season business will be heavily disrupted. At this point, the path forward remains unclear, and we’re doing our best to adapt in real time.”
“Overwhelming” Uncertainty, Hope for Change
Rainnie said the situation could have an even greater impact on the business than COVID-19 did.
“The level of uncertainty right now is overwhelming – especially with the lack of clear, consistent information to help us navigate the situation.”
In addition to pausing U.S. wholesale orders, Rainnie’s team is investigating alternative production plans, which she acknowledges is a long-term strategy. Malvados is also looking into expanding into new international markets. Beyond that, Malvados is continuing with its design and development for 2026.
If tariff rates are reduced within the next 90 days, Malvados is well-positioned to recover. But the company has already absorbed unexpected costs, she said.
“We’re investing significant time, energy, and resources to navigate the uncertainty and explore alternative solutions and we’ve incurred additional duties,” Rainnie said. “We’ve had to divert containers, split shipments, and secure extra warehouse space – all of which have added up quickly.”
One silver lining, she said, is that there could be a rise in travel and consumer spending in Canada, where Malvados is headquartered.
“With U.S. tariffs driving prices up significantly, it’s likely that American consumers will look north – especially when they realize they can purchase the same products in Canada for nearly half the price,” Rainnie said. “This shift could provide a meaningful boost to the Canadian economy.”
Kate Robertson can be reached at kate@shop-eat-surf-outdoor.com.
