American Outdoor Brands Struggles with Tariff Limbo: A Case Study in Supply Chain Resilience

American Outdoor Brands, a company that sells products such as fishing tools, hunting gear, and pizza ovens, is stuck in tariff limbo. Most of its products come from China, and executives had planned to reposition the supply chain ahead of July 9 when reciprocal tariffs were set to take effect. However, the company is now waiting to see where to go as it tries to minimize the pain of tariffs.

American Outdoor Brands, Inc. (NASDAQ: AOUT), a company known for its outdoor products including fishing tools, hunting gear, and pizza ovens, is currently navigating the complexities of tariff uncertainty. The company's supply chain, heavily reliant on Chinese imports, was set to undergo significant adjustments to mitigate the impact of reciprocal tariffs scheduled to take effect on July 9. However, the recent postponement of these tariffs has left the company in limbo, trying to minimize potential disruptions.

The postponement of the tariffs, initially planned to kick in after a three-month delay, was announced by the U.S. administration on July 9. This delay, which extends the deadline to August 1, provides more time for businesses to adapt and for trading partners to negotiate deals, thereby avoiding the hefty levies [2]. The uncertainty surrounding the tariffs has created a challenging environment for American Outdoor Brands, which was preparing to reposition its supply chain to minimize the impact of the tariffs.

The company's stock price reacted negatively to the initial announcement of the tariffs, falling by $1.57 per share, or 13.13%, to close at $10.39 on June 27, 2025 [1]. This drop underscores the market's concern over the potential financial implications of the tariffs for the company. American Outdoor Brands has been advised by Pomerantz LLP to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980, for more information on the ongoing investigation into potential securities fraud or unlawful business practices related to the tariffs [1].

The postponement of the tariffs provides American Outdoor Brands with a brief respite to reassess its strategy. However, the prolonged uncertainty is likely to continue weighing on the company's operations and financial planning. Economists generally agree that tariffs can have adverse effects on a country's economic output, productivity, and job creation [2]. The impact of tariffs on businesses like American Outdoor Brands, which rely heavily on imported components, could be significant.

As the company awaits further developments on the tariff front, it will be crucial for executives to monitor the evolving trade landscape and adjust their supply chain strategies accordingly. The prolonged uncertainty could also impact the company's ability to invest in growth opportunities and maintain its competitive edge in the outdoor products market.

References:
[1] https://www.globenewswire.com/news-release/2025/07/14/3114851/1087/en/INVESTOR-ALERT-Pomerantz-Law-Firm-Investigates-Claims-On-Behalf-of-Investors-of-American-Outdoor-Brands-Inc-AOUT.html
[2] https://www.cnn.com/2025/07/09/economy/why-tariffs-backfire-trump-intl