A contingent of more than 200 U.S. footwear brands are urging President Trump to drop the new tariffs on Chinese goods that will take effect next month and in mid-December, warning American consumers, not Beijing, will be hit hardest by the duties.
“There is no doubt that tariffs act as hidden taxes paid by American individuals and families,” the companies wrote in a Wednesday letter to Trump. “When import costs rise and fall on imported footwear — whether based on the price of materials, transportation, labor, or tariffs — those cost increases or savings are almost immediately passed on to consumers.”
The Trump administration is set to slap 15% taxes on $300 billion in goods imported from China. The tariffs, which target a wide swath of goods, will be imposed in two batches, with the first round taking effect Sept. 1 and the second Dec. 15. The majority of footwear products will face the added duties beginning Sunday.
The Chinese imports were initially supposed to be taxed at 10% and be hit with the levies Sept. 1, but Trump delayed some of the tariffs until mid-December to shield consumers during the busy holiday shopping season. He then increased the taxes from 10% to 15% last week after China slapped retaliatory duties on $75 billion in U.S. goods.
In their letter to Trump, the companies warned the new tariffs will affect “every type of shoe and every single segment of our society,” and cost consumers an added $4 billion annually, according to the Footwear Distributors & Retailers of America.
“Imposing tariffs in September on the majority of all footwear products from China — including nearly every type of leather shoe — will make it impossible for hardworking American individuals and families to escape the harm that comes from these tax increases,” the brands, which include Nike, Skechers, and Adidas, wrote in their letter.
In addition to the costs to consumers, the companies said the duties will create economic uncertainty that could chip away at consumers’ disposable income.
“When consumers have less money to spend, we sell fewer shoes and this hurts U.S. businesses,” they wrote. “The tariff threat on China has the potential to drive up prices in other footwear sourcing countries, as demand has spiked with limited production capacity. As a result, U.S. consumers could face higher prices even before the new tariffs take effect.”
With the 15% duties looming, trade groups representing a variety of industries are encouraging the president to scrap the tariffs. Rick Helfenbein, CEO of the American Apparel & Footwear Association warned in a recent interview the U.S. is approaching “retail Armageddon.”
