Charles Esther
The US footwear industry is raising alarms about the new tariffs proposed by President Donald Trump, calling for the exclusion of footwear products.
Major brands such as Nike, Adidas, and Skechers have expressed their worries, stating that these tariffs could lead to higher costs for consumers and job losses in the industry.
The Industry’s Vulnerability to Tariffs
In a letter to President Trump, over 80 US footwear companies, including leading brands and manufacturers, warned that the footwear sector is particularly vulnerable to the impact of tariffs.
The letter emphasized that shoes already face some of the highest import taxes in the US tariff system, particularly for children’s shoes and lower-priced footwear.
The footwear industry’s vulnerability stems from the significant tariff rates, ranging from 20% to 37.5% or higher, that are imposed on footwear imports.
This high level of taxation, combined with the potential for new tariffs, threatens to make shoes even more expensive for American families.
The Potential Consequences of New Tariffs
The letter from the Footwear Distributors & Retailers of America (FDRA) emphasized that the imposition of additional tariffs on footwear would have dire consequences.
According to the trade group, the new tariffs would not lead to the return of manufacturing jobs but would instead harm American consumers and businesses.
The industry is already dealing with unforeseen tariff costs on products that were ordered months ago and are now arriving at US ports.
The inability to cover these sudden costs could place many US footwear companies at risk.
A Call for a More Targeted Approach
In their letter to President Trump, the footwear industry leaders proposed a more targeted approach to tariffs.
Instead of broad tariffs on everyday consumer goods, the industry advocates for a focus on strategic items that serve national security interests.
This, they argue, would allow the government to safeguard its interests without unnecessarily burdening American families with higher prices.
Brand Concerns: Increased Costs and Job Losses
Brands like Adidas have raised specific concerns about how the new tariffs could affect their pricing strategies in the US.
Adidas CEO Bjørn Gulden warned that the tariffs could result in higher costs for all products sold in the US market, as the company is heavily reliant on imports.
Without the ability to produce products domestically, Adidas, like many other companies, would have no choice but to pass on the increased costs to consumers.
Conclusion: A Plea for Action
The footwear industry is urging President Trump to remove footwear from any reciprocal tariff regime.
They argue that this would prevent harm to consumers and businesses alike while still addressing the government’s broader trade concerns.
The industry’s leaders believe that a reconsideration of these tariffs is essential to maintaining the health of the footwear market and protecting jobs across the nation.
