Passenger Temporarily Pauses US Business To Focus On Its Fast Growing EU Business

Passenger has paused its US growth initiatives, in light of recent tariff announcements.

Passenger grew 76% in 2024 to £57M net revenue, up from £33M in 2023. Currently, its fastest growing region is Europe and the business has a large customer base in the UK, where it began 13 years ago. Given the success Passenger is seeing in the European market, the brand has shifted resources and rerouted stock that was planned for the US to deliver against strong demand in Germany, France, the Netherlands, Belgium, and the UK.

Jon Lane, CEO at Passenger said, “Passenger has seen rapid direct to consumer growth in the US over the last two years, and has a large pipeline of wholesale orders building from retailers such as REI, Scheels, Backcountry, and outdoor specialty stores. However, with US tariffs increasing so rapidly and being so volatile, this has turned the US from a great opportunity to a risky proposition.”

With many production partners and recycled fabrics coming out of the Far East, Passenger has seen average duties and tariffs climb to over 50%. This means for every $1 million of stock landed in the US, the Passenger business will be responsible for a further $500,000 in duties and tariffs on day one alone.

Lane added, “Although Passenger was looking forward to scaling in the US, given the opportunity in Europe, where we are seeing triple-digit growth in some countries and a stable business environment, we’re confident that this shift in focus will enable Passenger to deliver on its ambitious plans.”

“We’ve spoken to all our key retail partners in the US and really appreciate their positive feedback and long-term support. Like many others, we’ll be keeping a close eye on the US over the coming months to see if tariffs are reduced to a sustainable level and if the landscape has become more settled.”