ATLANTA — With the newest tariff deadline fast approaching and the industry working to adjust in the face of uncertainty and soft consumer demand, it might be easy to assume that a brand such as Zuo Outdoor — which manufactures entirely overseas — would be watching the developments with bated breath.
But CEO Luis Ruesga said that the opposite is true. Rather than reacting to each new development and constantly readjusting, Zuo is making its sourcing decisions based on which countries can reliably supply products.
“We don’t want to slow down or be paralyzed for fear of the tariffs,” Ruesga said. “We have great inventory here now and can meet demand. We’re a little bit confused, like everyone, about what is the strategy (behind the tariffs) or what we will do in the distant future.”
Cheaper ocean shipping rates from China due to decreased demand have played a mitigating role in reducing some of the tariff impacts for Zuo, Ruesga explained.
“For a while, we were producing everything in China for the outdoor, and then (after Trump’s announcement) people felt the urgency to move everything to Vietnam and Malaysia,” he said. “But for us, the ocean freight from China is so inexpensive right now and so fast, it still makes sense to source there.”
For several of Zuo’s product lines, Ruesga said that the issue of availability and ability to manufacture at scale makes the tariff question moot.
“My partner had a great philosophy. He said, ‘Let’s focus on what the country is good at making instead of constantly thinking of the tariffs.’
“He used India as an example,” Ruesga continued. “We’re not going to get handmade brass tables from anywhere else besides India, so if Trump puts a 20% tariff on tomorrow, we have no other option because we’re not going to find them anywhere else. The cat-and-mouse game will never stop, you know, so we can’t keep chasing it.”
Ruesga reports that Zuo’s traffic at July Casual Market Atlanta has been strong, albeit slanted decidedly toward smaller independent retailers, many of whom are drawn to some of the performance-focused outdoor product in their hospitality division.
“Last year, I think there was a big push on the independent retailers to come in July instead of September, but they have been telling me that they did the opposite,” he explained. “Some of the retailers are really attracted to the hospitality touches, such as hidden attachments that keep cushions tied down to our aluminum frames.”
