Across the internet, people are torching their tennis shoes. The burning rubber comes after New Balance offered their endorsement of president-elect Donald Trump. But while it makes for an interesting political statement, it’s not exactly sustainable.
Well off millennials can trash a $150-dollar shoe to protest democratic election this time. But they better take stock of their personal belongings because the Trump effect is just starting. The businessman said he’s prepared to make deals and manufacturers are taking him at his word.
The mercantilist Republican promised to level the playing field with retaliatory tariffs and protectionist policies. That could throw global markets off balance and it explains the origin of the sudden footgear protest.
New Balance has been locked in a street fight with Nike for market share. The sneaker company is trying to transition from a casual shoe into athletic gear. But so far they’ve been unable to gain traction against the world’s largest sportswear company. And any additional international competition could solidify their beta status.
That’s made New Balance a vocal opponent of President Obama’s Trans-Pacific Partnership and a prominent supporter of Trump.
A day after the election, New Balance publically praised the New York businessman. “The Obama administration turned a deaf ear to us,” Matt LeBretton, VP of Public Affairs, told the Wall Street Journal, “and frankly with President-elect Trump we things are going to move in the right direction.”
While backlashed ensued shortly afterward, New Balance’s attempt to buddy up to the nominee could actually help its bottom line.
The company has been lobbying Congress to subsidize its profits for years. With a large domestic manufacturing base, they’ve pushed legislation that requiring the Department of Defense to purchase shoes made in the U.S. If passed, America’s military would wear the white tennis shoes traditionally reserved for unfashionable, middle-age fathers. It’d be a windfall.
No wonder, the shoe company is doing everything it can to gain favor with the incoming executive. It could be good business practice.
Because Trump made trade personal on the campaign trail, expect personal appeals to the president from across the economy. After all, he didn’t just call out the auto industry generally during his trip to Detroit. He specifically singled out the Ford Motor Company for sending manufacturing to Mexico. And that willingness to meddle in the market is an opportunity for industry.
Companies like New Balance won’t hesitate to curry personal favor with Trump. He’s promised to punish companies that outsource and cut deals for ones that expand. After all, there’s no reason to compete when you can carve out a portion of the market.
Angry protestors should think twice about their self-destructive tantrums. While they deserve props for just destroying their own property, this can’t last forever. New Balance is just the first out of the gate to seek the blessing of Trump’s protectionism.
Philip Wegmann is a commentary writer for the Washington Examiner.
