America’s largest shoe brands are asking President Donald Trump for a tariff reprieve.
The Footwear Distributors and Retailers of America trade group sent a letter to the White House this week asking for an exemption to Trump’s so-called “reciprocal tariffs,” which the association said pose an “existential threat” to the footwear industry. The letter is signed by 76 footwear brands, including Nike, Adidas, Skechers and Under Armour.
“Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs. Without immediate relief from the reciprocal tariffs they will simply shutter,” reads the letter, which is dated April 29.
“Many orders have been placed on hold, and footwear inventory for U.S. consumers may soon run low,” the trade group said.
Trump’s wide-sweeping tariffs, announced on April 2, included levies on several countries that are important sources for footwear suppliers, including China, Vietnam and Cambodia. While the initial tariff rates of over 45% for Vietnam and Cambodia were lowered to 10% for a 90-day period, the Trump administration has only ratcheted up duties on Chinese imports, which are now subject to an effective tariff rate of 145%.
Trump’s higher tariffs on dozens of trade partners are set to resume in early July.
Adidas previously warned this week that tariffs would lead to higher prices for American consumers. In late March, before the specific reciprocal tariff rates were announced, Nike’s finance chief said global levies and economic uncertainty would result in lower current-quarter sales.
The footwear association’s letter said the industry had already been facing significant duties on products like children’s shoes before Trump announced his broad tariffs. In total, U.S. footwear companies will face tariffs ranging from 150% to about 220%, the trade group said.
“This is an emergency that requires immediate action and attention. The American footwear industry does not have months to adjust business models and supply chains while absorbing this unprecedented and unforeseen tariff regime,” the association wrote.
The group further warned that the tariffs won’t result in bringing manufacturing back to the U.S., as Trump has promised, because they erase the certainty that businesses require in order to invest in sourcing changes.
The White House didn’t immediately respond to a CNBC request for comment.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
