Successfully managing and growing a brand in the golf industry is a challenging proposition under the best of circumstances; however, doing so without a clear understanding of where input costs will settle due to tariffs will be a test for every organization over the next several months.
And there will be no clarity until the Supreme Court rules on the legality of the Trump tariffs. With oral arguments possibly not taking place until November and a ruling likely not occurring until early 2026, business leaders are being forced to make their best estimate of what will happen and when. Those who are looking to be conservative in their business planning will undoubtedly raise prices for 2026, while others may choose to delay a decision until the last possible moment, leading to continued uncertainty in pricing and last-minute adjustments.
When President Trump first announced his tariff plans in February 2025, there were immediate reactions from many economic experts, suggesting that prices would rise as the extra costs are passed on to consumers, slowing spending and negatively impacting the U.S. economy. And while it is true that consumer prices have increased over the past six months, the reality is that they have not risen dramatically, increasing around 2.8 percent, which is above the Federal Reserve’s targeted 2 percent annually but well below the highs encountered in 2023 and 2024.
Throughout the summer, with considerable uncertainty surrounding the implementation of tariffs, many manufacturers and retailers adopted a cautious approach, holding off on price changes for consumers in the short term to await the ultimate outcome of the tariffs.
In the days, weeks and months following the initial announcement, the size and scope of tariffs underwent significant fluctuations by country, creating considerable uncertainty about the cost of goods for anything made outside the United States. Additionally, the dates and timing of implementation kept shifting, so companies constantly adjusted their strategies to meet what they expected the outcome would become.
Many U.S. manufacturers and importers developed elaborate procedures to minimize the immediate financial hit of tariffs on consumers. These included delaying shipments from vendors to coincide with the lowest-impact period, absorbing the costs themselves, which lowered margins, or asking retail partners to assume some of the costs, which affected their profits. None of these measures is preferred in the long term.
Additionally, these avoidance measures have tested the strength and resilience of many organizations’ supply chains. While companies have been attempting to mitigate the negative impact of tariffs on their costs by adjusting their current procurement mechanisms, they are also looking toward changing their future structure. These changes will involve sourcing new vendors, utilizing existing suppliers in different ways, relocating manufacturing to countries with lower tariffs, or sourcing domestically when possible.
Throughout the summer, with considerable uncertainty surrounding the implementation of tariffs, many manufacturers and retailers adopted a cautious approach, holding off on price changes for consumers in the short term to await the ultimate outcome of the tariffs.
In a widely read report, the respected economists at Goldman Sachs estimate that through June, only 22 percent of the cost impact of tariffs had been passed along to U.S. consumers, but that is likely to rise to 67 percent later in 2025 as companies and retailers make the difficult decision to raise prices on many products.
Impact on golf brands
The implementation of the tariffs on the hard and soft goods businesses was not as financially debilitating as it might have been in 2025.
When the tariffs were announced in February, initial shipments of new equipment had just begun to fill the golf retail channels. Additionally, many manufacturers anticipated that some tariff action would occur after Donald Trump’s election and front-loaded shipments to mitigate the expected additional costs. The impact is likely more significant on apparel because of timing issues. Still, regardless of the product category, all golf brands are facing substantial cost pressure in the back half of 2025, which will lead to higher consumer prices on many golf items in 2026.
‘Tariff drag’ to nag at golf economy
Early indications from major equipment brands suggest higher prices in 2026, particularly for golf clubs, bags and shoes, as these products are primarily sourced from countries facing high tariffs, notably China. Cost increases on imported goods are affecting almost every product and brand, with most companies doing everything within their power to avoid passing on price increases to consumers. Frequently, OEMs are engaging with their retail partners to share some of the burden and minimize price increases to consumers, but this strategy has had mixed results so far.
In their recent quarterly financial calls, both Callaway and Acushnet highlighted the substantial estimated impact that tariffs would have on their bottom line. Acushnet projected a potential impact of $30 million in the back half of 2025, although the company was still working to mitigate the full force of the tariffs. Meanwhile, Callaway estimated the full-year impact in 2025 to be closer to $40 million. While both brands will attempt to offset the cost implications through internal machinations, there is no doubt that consumers will see higher prices on some products.
And these increased costs are not unique to these two leading brands; however, since they are both publicly traded, their impacts are readily available due to financial reporting requirements.
Since the emergence of COVID-19 in March 2020, the average prices of all product categories in golf have increased significantly. Looking ahead to 2026, it will be a risky proposition to raise consumer prices significantly, as this may lead to a loss of unit demand, regardless of whether a brand is selling mid-priced or premium products. And unfortunately, lower-priced products, which can least afford price increases, most frequently are sourced from countries where the tariff impacts are highest.
A category like drivers, where most brands coalesced around the $599 price point in 2025, is likely to face consumer resistance above $600, resulting in reduced purchase interest and damage to unit demand. In irons, price increases are more difficult to isolate because the set makeups are ever-changing. Some sets will have eight irons, while others may have as few as five, and the composition could include hybrids or not. As a result, iron prices are slightly less transparent, and increases are harder for consumers to identify and compare.
None of the above analyses considers the potential impact of a broader economic slowdown and possible recession, which could reduce consumer discretionary funds and ultimately negatively affect demand for golf and golf products.
It will take time for the full impact of tariffs to work its way through the various cost centers across the golf industry. However, there is no doubt that the overall effect will result in higher costs for the brands, and either lower margins or higher prices for consumers.
A founder and former principal of Golf Datatech LLC, John Krzynowek has spent the past 25 years helping golf brands navigate the ups and downs of the marketplace for equipment and apparel. Prior to that he held senior management roles in golf equipment sales, marketing, and product design.