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Nike, Adidas, signing letter to Trump urges against tariffs on footwear



More than 170 shoe dealers, including Nike, Under Armor, Adidas, Foot Locker, Ugg and Off Broadway Shoe Warehouse, have written a letter to the White House asking President Donald Trump to consider stopping raising footwear tariffs imported from China.

It comes after the White House last week released a new list of about $ 300 billion in Chinese goods that could be hit by 25% tariffs, if Trump decides to go ahead with its threat. The list contains shoes – everything from sneakers to sandals, golf shoes, raincoats and shoes.

Shoe dealers and dealers of America, a trade organization for their industry, have estimated that the tariffs may cost scoopers over $ 7 billion each year.

FDRA said a popular type of canvas "skate" sneaker, currently retailing at $ 49.99, with a 25% tariff, could increase to $ 65.57. The price of a typical hunting boot would increase from $ 1

90 to $ 248.56. And a popular running shoe can jump from $ 150 to $ 206.25.

In a letter sent to Trump Monday, dozens of dealers asked to "immediately remove shoes" from being considered for further taxation.

"While US rates on all consumer goods only average 1.9 percent, they average 11.3 percent for footwear and reach prices as high as 67.5 percent. Adding a 25 percent tax on top of these tariffs would mean "Some are working American families could pay nearly 100 percent duty on their shoes," the letter said. "This is unimaginable."

The United States imported $ 11.4 billion in shoes from China last year, according to US Census Bureau data, which Make it an industry that is incredibly dependent on the country for cheaper but skilled labor.

Nike, Adidas and Under Armor, including sneaker makers, have constantly relieved their dependence on China, changing production to places like Vietnam instead.

But "footwear is a very capital-intensive industry, with many years of planning needed to make sourcing decisions, and businesses can't just move factories to adapt to these changes," the letter says. sent to Trump said.

Here is the full letter.

Dear Mr. President:

As leading US footwear companies, brands and retailers, with hundreds of thousands of employees across the United States, we write to request that you immediately remove footwear from the last section 301 list that became Published by US Trade Representative on May 13, 2019. The proposed additional 25 percent on footwear will be disastrous for our consumers, our companies, and the US economy as a whole.

There should be no misunderstanding that US consumers pay tariffs on products being imported. As an industry facing a $ 3 billion bill every year, we can assure you that any increase in the cost of importing shoes has a direct impact on US footwear consumption. It is an inevitable fact that when prices go up to the limit due to transportation costs, increases in labor or additional duties, the consumer pays more for the product.

This substantial tax increase, in terms of tariffs, would affect all types of shoes and every segment of our society. In fact, the industry's union, the Footwear Distributors & Retailers of America (FDRA) broke the numbers, and the results are staggering. The FDRA estimates that the proposed actions will add $ 7 billion in additional costs to our customers each year. This dramatic increase will be at the top of billions of Americans already paying as a result of the current tariff burden on footwear imports started in 1930.

The high footage tariffs are disproportionate to working class individuals and families. While US rates on all consumer goods only averaged 1.9 percent, they averaged 11.3 percent for shoes and range as high as 67.5 percent. Adding a 25 percent tax increase to the top of those rates will mean that some working American families can pay nearly 100 percent duty on their shoes. This is unimaginable.

There have been suggestions that industries should rapidly switch sourcing to countries other than China in the wake of these extra tariff threats. While our industry has moved away from China for some time now, shoes are a very capital-intensive industry, with many years of planning required to make buying decisions, and businesses can't just move factories to adapt to these changes. Any measures to increase the duties of Chinese footwear will have an immediate and long-lasting effect on American individuals and families. It will also threaten the very economic viability of many companies in our industry.

On behalf of our hundreds of millions of footwear consumers and hundreds of thousands of employees, we ask that you immediately stop this action to increase its tax burden. Your suggestion to add tariffs to all imports from China asks the US consumer to pay the bill. It is time to bring this war to an end.

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