Trek CEO says tariffs could potentially "have a huge impact on employment levels"

Trek CEO John Burke talked to Fortune about the potential impact of tariffs on the company.

Transcript

00:00We just increased our prices last week, 10%.

00:08We're an international business.

00:10We design products in the United States.

00:12We build products in the United States.

00:14We source products in Asia.

00:17We have a large factory in Europe.

00:20We do more than 50% of our business outside the United States.

00:24We're a global company.

00:26And we've got tariff policies that are changing on a constant basis.

00:32Tariffs can have a massive impact on a company that potentially can have a huge impact on employment levels.

00:41Over 50% of Trek's business is done outside the United States.

00:44Why would it be difficult for Trek to move all of its manufacturing to the United States?

00:49We actually, this goes back to the mid-90s.

00:53We actually had a manufacturing plant that built a lot of volume bikes in the U.S.

00:58And it's really hard because the infrastructure doesn't exist.

01:02There are not frame manufacturers.

01:04There aren't parts manufacturers.

01:06Like, you can't buy tires.

01:08You don't have rim suppliers.

01:09You don't have brake suppliers.

01:10You don't have crank suppliers.

01:12All that business is gone.

01:14It hasn't been in the U.S. for 40 years.

01:16It doesn't exist.

01:17So to snap your fingers and go, let's re-shore everything.

01:21By the time you re-shored stuff and started at that, you're five years down the road.

01:27And for people to think that you can just go like that, you can't.

01:32You can't.