A coalition of 173 Leading American footwear companies including Nike Inc, Adidas, and Under Armour have written to U.S. President Donald Trump to remove footwear from the proposed tariffs list on goods imported from China.
“The proposed additional tariff of 25 percent on footwear would be catastrophic for our consumers, our companies, and the American economy as a whole,” the coalition said In an open letter to Trump.
“The Footwear Distributors & Retailers of America (FDRA) estimates the hike in tariff would add $7 billion in additional costs for customers every year.” The coalition pointed to the research of (FDRA).
The US increased tariffs on $200 billion worth of Chinese imports to 25% from 10% earlier this month, a move that is expected to raise prices on thousands of products including clothing, furniture and electronics. It is expected to impose 25% on a further $300bn worth of Chinese goods next month.
“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,” the companies said.
The companies mentioned that the tariffs on footwear average 11.3% and reach rates as high as 67.5%. Adding a 25% tax increase on top of these tariffs would mean Americans have to count a nearly 100% duty on their shoes, the companies explained in the letter.
The letter was also sent to Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross, Trade Representative Robert Lighthizer and National Economic Council director Larry Kudlow.
The signatories also include Aldo USA, Inc, Caleres, Camuto Group, Columbia Sportswear, Converse, Deckers Brands, Hush Puppies, Keds, Puma, Reebok, Skechers, Steve Madden, Weyco Group, and Wolverine Worldwide.