More than 170 of the nation’s largest footwear companies have sent a clear message to President Trump: A trade war with China will burn a hole in Americans’ soles.
The shoe sellers signed a letter to the White House warning of the “catastrophic” effects Trump’s proposed 25 percent tariffs would have on consumers, companies and the U.S. economy. Trump last week proposed the higher tariffs against shoe imports as part of a broader package of restrictions on $300 billion in Chinese goods, including many consumer items. The U.S. already has imposed tariffs, a type of import tax, on $250 billion in Chinese products, but consumer products were largely shielded from those penalties.
Consumers ultimately absorb the tariffs in the form of higher retail prices, the shoe companies said, despite Trump’s insistence that China will foot the bill. Monday’s letter included signatures from powerhouses like Nike, Adidas, Foot Locker, Ugg, Crocs, Steve Madden, Skechers and Converse.
“We can assure you that any increase in the cost of importing shoes has a direct impact on the American footwear consumer,” the letter said. “It is an unavoidable fact that as prices go up at the border due to transportation costs, labor rate increases, or additional duties, the consumer pays more for the product.”
The footwear industry is not alone: Economists and other business groups contend that tariffs are a tax on Americans that comes due to the U.S. companies that import foreign goods. Trump has countered that imposing tariffs incentivizes companies to move production back to the U.S. He has said it is the only way to get Beijing’s attention.
Still, Trump maintains the U.S. is “winning” the trade war with China.
“We’re going to be collecting over $100 billion in tariffs,” Trump told reporters last week from the South Lawn.
Complicating matters further: The shoe industry is deeply entrenched in China. In their letter, footwear companies warned that they can’t “simply move factories to adjust to these changes.” After all, footwear is one of the nation’s most heavily imported products, with nearly all shoes manufactured outside the U.S. Nearly three-quarters of those imports come from China, the American Apparel & Footwear Association said last year.
The footwear industry’s trade association, the Footwear Distributors & Retailers of America, estimates that the proposed tariffs would add $7 billion in additional costs for customers each year, the letter said. That’s on top of the existing $3 billion a year in tariffs paid by the shoe industry, thanks to legislation from 1930 that was intended to protect U.S. manufacturing during the Great Depression.
Last summer, Trump levied tariffs on $34 billion worth of Chinese goods. The White House followed up with a threat to extend the tariffs to all $500 billion worth of imports from China, which put the shoe industry on high alert. Nike, Saucony and Under Armour had previously written to the White House, saying that shoe tariffs would lead to higher costs for consumers and fewer American jobs.
