With seemingly little solution to their supply-chain issues, a trade group made up of prominent footwear brands, including Nike, adidas and Sketchers, made a plea to President Donald Trump for tariff relief this week.
A letter sent to the White House signed by 76 members of The Footwear Distributors and Retailers of America said the tariffs imposed result in an “existential threat” to their businesses.
Friday marked one month since Trump initiated tariffs, which impose heavy penalties on imports to the United States, especially from Asia, where most products by American shoe and apparel companies are made.
Initial tariffs to Vietnam and Cambodia dropped from 45 percent to 10 percent for a three-month reprieve, but the sneaker companies told Trump greater reductions must happen.
“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. Without immediate relief from the reciprocal tariffs they will simply shutter,” the note read.
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With payment for tariffs due at landing, the footwear manufacturers say they are holding orders back, which could result in lower supply and ultimately even higher prices.
Fewer than 1% of sneakers bought in the U.S. are made in the country. While the idea of tariffs is to motivate companies to bring manufacturers back to America, the shoe companies say the uncertainty the tariffs bring doesn’t encourage more business.
Said the association: “The American footwear industry does not have months to adjust business models and supply chains while absorbing this unprecedented and unforeseen tariff regime.”
Darren Rovell is the founder of cllct and one of the country's leading reporters on the collectibles market. He previously worked for ESPN, CNBC and The Action Network.