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Investing.com -- Major footwear companies including Nike (NYSE:NKE), Adidas (OTC:ADDYY), Under Armour (NYSE:UA), and Puma (OTC:PMMAF), represented by a trade association, made a plea to the Trump administration requesting tariff exemptions for their products. The group expressed concern that the tariffs would significantly increase the cost of shoes for American consumers and potentially lead to business closures.
The association highlighted the already substantial tariff burden on the footwear industry, with existing rates on children’s shoes reaching as high as 37.5 percent, even before the new reciprocal tariffs. They warned that the additional tariffs could push rates to between 150 percent and nearly 220 percent for many companies, which would be unsustainable, particularly for those providing affordable footwear to lower and middle-income families.
The footwear producers argued that the tariffs would not incentivize a return of shoe manufacturing to the United States due to the capital investment and time required to shift sourcing. They also pointed out that tariffs on machinery and materials needed for domestic production further complicate the situation.
According to the trade association, the tariffs have been in place for nearly a century and have not resulted in increased domestic production, but rather have led to higher prices for consumers at the cash register. They emphasized that the industry is one where tariffs do not significantly boost domestic production.
The industry representatives warned of the immediate risks posed by the tariffs, including job losses, increased consumer costs, and reduced consumer spending that could negatively impact the entire U.S. economy. They urged for a more targeted tariff approach that would not harm American families and requested the administration to exempt footwear from any reciprocal tariff regime.
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