Nearly 200 leading shoe brands in the United States are urging President Trump to drop footwear from the list of products to be hit with higher tariffs, warning that the increased duties will be “catastrophic” for consumers, companies, and the U.S. economy.
“Any action taken to increase duties on Chinese footwear will have an immediate and long-lasting effect on American individuals and families,” the brands, which include heavyweights Adidas, Nike, and Skechers, wrote in an open letter to the president Monday. “It will also threaten the very economic viability of many companies in our industry.”
Trump announced this month he would hike tariffs up to 25% on $200 billion in Chinese goods and began the process of slapping increased duties on nearly all remaining Chinese imports.
In response to the president’s action, China hit back against the U.S. by raising tariffs on $60 billion in U.S. products.
The tit-for-tat levies represent the latest salvo in the trade dispute between the two nations and came after trade negotiations between U.S. and Chinese officials failed to yield a deal that would stave them off.
Trump on Friday defended his decision to increase tariffs, saying it’s “worth it,” but acknowledged U.S. consumers will “pay a little bit.”
[Related: ‘They have to stop’: Small businesses alarmed by new Trump tariff threat]
U.S. footwear brands, however, warned the 25% increase could cause some American families to pay a “nearly 100 percent duty on their shoes.” Additionally, the Footwear Distributors and Retailers of America, the industry’s trade association, estimated the increased tariffs on Chinese products would cost U.S. consumers an additional $7 billion annually.
“There should be no misunderstanding that U.S. consumers pay for tariffs on products that are imported,” the coalition of brands said in their letter to the president. “As an industry that faces a $3 billion duty bill every year, we can assure you that any increase in the cost of importing shoes has a direct impact on the American footwear consumer.”
“It is unavoidable 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,” they added.
China accounted for 72% of all footwear imported into the U.S. in 2017, according to industry groups, and while some brands have shifted production to other countries in the wake of the trade tensions between the U.S. and China, such a move requires extensive planning that can take years, the companies warned.
“Your proposal to add tariffs on all imports from China is asking the American consumer to foot the bill,” the brands wrote in their letter to Trump. “It is time to bring this trade war to an end.”
