Nike, Adidas, Skechers, Under Armour want Tariffs Exemption
Major American footwear corporations requested a temporary exemption from tariffs.
Quick overview
- Major American footwear companies have requested a temporary exemption from tariffs, citing an 'existential threat' to the industry.
- 76 companies, including Nike and Adidas, warned that high tariff rates could lead to a shortage of affordable footwear for American consumers.
- The Footwear Distributors and Retailers of America highlighted that current tariffs range from 150% to 220%, making it difficult for businesses to adapt.
- The trade group emphasized that the tariffs will not incentivize domestic manufacturing, as they create uncertainty for investment in sourcing changes.
Major American footwear corporations requested a temporary exemption from tariffs.
The Footwear Distributors and Retailers of America trade group, which claims that Trump’s so-called reciprocal tariffs represent an “existential threat” to the footwear industry, wrote to the White House this week requesting an exemption.
Nike, Adidas, Skechers, and Under Armour were among the 76 footwear companies that signed the letter. They stated that many businesses that provide reasonably priced footwear for lower and middle-class families can’t absorb such high tariff rates or pass these costs on to their customers. “They will simply shudder if they do not receive immediate relief from the reciprocal tariffs,” the letter, dated April 29, states.
“A lot of orders have been put on hold, and there may soon be a shortage of footwear for US consumers,” the trade association stated. In his April 2 announcement of his broad tariffs, Trump imposed taxes on several nations that are significant suppliers of footwear, including China, Vietnam, and Cambodia.
For Vietnam and Cambodia, the initial tariff rates of over 45 percent were reduced to 10 percent for 90 days; however, the Trump administration has only increased duties on Chinese imports, which now have an effective tariff rate of 145 percent. Early in July, Trump is expected to resume raising tariffs on dozens of trading partners.
Adidas issued a warning that tariffs would raise prices for American customers.
Nike’s finance chief predicted lower current-quarter sales due to global levies and economic uncertainty. According to the letter from the footwear association, the industry was dealing with high tariffs on goods like kids’ shoes before Trump announced his extensive tariffs.
According to the trade group, footwear companies will be subject to tariffs that range from 150 percent to roughly 220 percent. “This is an emergency that needs to be addressed right away. The association stated that the American footwear industry does not have months to modify supply chains and business models while adjusting to this unexpected and unprecedented tariff regime.
The group also cautioned that the tariffs will not lead to a return of manufacturing to the United States because they eliminate the certainty that companies invest in sourcing changes, as Trump has pledged.
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