Handguns are displayed at the Smith & Wesson booth at the 2018 National Shooting Sports Foundation's Shooting, Hunting, Outdoor Trade Show on January 23, 2018, in Las Vegas, Nevada.
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You'll pay more for these, thanks to tariffs
New York CNN Business —  

Tariffs are about to become a big problem for American Outdoor Brands, the maker of iconic Smith & Wesson firearms.

The company reported weaker than expected earnings Thursday because of a drop in gun sales. It also warned investors that it will take a $5 million hit to earnings in the second half of the fiscal year due to the impact of tariffs from the escalating US-China trade war.

On Friday, American Outdoor Brands stock dropped 22%, to 6.01 from 7.68 a day earlier.

The tariffs will mostly affect its outdoor products – hunting and fishing accessories that account for more than a quarter of its sales. Many of those products are made in China, and the company warned it has few alternatives other than to pay the cost of the tari