Shares of Newell Brands, parent company of Pure Fishing, plummeted to a five year low this week. The plunge comes as new U.S. tariffs threaten to cost the company $100 million annually.
According to a Market Watch report, Newell Brands CEO Michael Polk told analysts that U.S. tariffs on Chinese goods, and retaliatory tariffs from the European Union and Canada could hit the company hard. On Monday, that news caused Newell stock to dip by 14 percent.
Newell owns an array of consumer brands outside of the fishing industry, including Sharpie, Mr. Coffee and Rubbermaid. In May, Newell Brands announced plans to sell Pure Fishing by 2019 as part of a plan that would divest it of two-thirds of its factories and approximately half its workforce. Pure Fishing is the parent company of such iconic fishing brands as Abu Garcia, Berkley, Fenwick, Hardy, Penn, Pflueger, Shakespeare, SpiderWire and Stren, among others.
Newell’s stock decline comes on the heels of a call-to-action by the American Sportfishing Association (ASA), citing proposed tariffs of 25 percent on $200 billion worth of Chinese goods, some of which could impact the tackle industry. According to ASA, the goods most likely to be impacted are apparel, accessories, inflatable boats, fishing baskets, plastic rain gear and cast nets. Beijing responded to Washington late last week with a threat to tax an additional $60 billion on U.S. imports.
Last year, China sold $505.6 billion worth of goods to the United States and purchased $130.4 billion.