Amidst the trade war between US and China, the footwear industry of US is going to suffer the most. On Thursday, President Donald Trump has announced tariffs on left over Chinese goods worth $300 billion. This 10% duty will be impacting home textiles, apparels, shoes and other consumer good and it will come into effect on 1 September.
Even after the talks for months between US and China, these tariffs would soon come into effect and mainly shoe manufacturers are the ones expecting a major hit. As per the reports of FDRA (Footwear Distributors & Retailers of America), a huge 70% part of shoes sold in US market are imported from China. FDRA consists of 500 members that include Steven Madden, Nike, crocs, etc. The organization said that the footwear that are imported from China have already been upped by 67% duties.
Matt Priest, CEO and President of FDRA said that it would be difficult for consumers to hide, whether it is 10%, it would still be death from thousand cuts.
170 plus shoe brands and retailers sent a letter to Trump in May when he was considering 25% hike on tariffs. They asked him to not raise the tariffs on footwear as increasing these tariffs would clearly mean for some working families to pay a hundred percent tariffs on their footwear.
As per the calculations of FDRA, the popular skate shoe could increase from $49.99 to $58.69 and thus with additional 10% tariffs would give a huge hike in prices from $190 to 222.27 while $150 running shoes can go up to $187.50.
CEO of American Apparel and Footwear Association, Rick Helfenbein told a popular news platform on Thursday that the short term would be very ugly for retails sector. The Trump administration is clearly passing the message to get out of China but the problem is they couldn’t do it so fast that administration wanted them to do, so they have to stay there and fight it out.
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