Nike, Adidas warn Trump tariffs could hike shoe prices
Photo: US footwear manufacturers and consumers could be impacted by tariffs (Getty Images)
The US footwear industry is asking the Trump administration to introduce tariff exemptions or cancel tariffs on its products, according to CNN and Bloomberg.
In a letter dated April 29, the US Footwear Distributors and Retailers Association warned that tariffs pose an "existential threat" to the industry. Specifically, they stated that tariffs would lead to higher shoe prices in the US and the closure of businesses.
"Hundreds of businesses face the prospect of closure. Tens of thousands of jobs are at stake. Many orders have been placed on hold, and footwear inventory for U.S. consumers may soon run low," the group said.
The letter was signed by companies such as Nike, Under Armour, Puma SE, Adidas' US subsidiary, and dozens of other brands.
The appeal argues that the tariffs have a particularly severe impact on the industry, as the federal government has already imposed high tariffs on children’s footwear. Companies now face tariffs ranging from 150% to nearly 200%.
"Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs," the letter states.
The companies assert that the tariffs "will not drive shoe manufacturing back to the US" because this requires "significant capital investment and years of planning to shift sourcing."
According to Bloomberg, major footwear manufacturers like Vietnam and Indonesia potentially face some of the highest tariff rates. For example, half of Nike’s footwear is produced in Vietnam.
Last month, Trump announced a 90-day pause on many of the proposed tariffs, including those imposed on Vietnam and Indonesia.
This announcement caused a rare stock market drop and widespread protests from business leaders.
