American footwear industry warns of tariff fallout

A coalition of major U.S. footwear companies is sounding the alarm over the potential devastation of new tariffs, warning that the levies could trigger widespread business closures, job losses, and price hikes for consumers.

In a letter to the Trump administration, the Footwear Distributors and Retailers of America (FDRA), representing industry giants like Nike, Adidas, and Skechers, argues that the tariffs pose an "existential threat" to the sector.

The FDRA contends that the footwear industry is uniquely vulnerable, as it already faces some of the highest tariff rates in the U.S. tariff code. The new tariffs, layered on top of these existing duties, could push total tariffs to unsustainable levels – as high as 220 percent in some cases.

The industry body warns of dire consequences, including.

• Closures: Hundreds of footwear businesses, particularly those focused on affordable footwear for lower- and middle-income consumers, could be forced to shutter.

• Job Losses: Tens of thousands of jobs are at risk across the manufacturing, distribution, and retail sectors.

• Supply Chain Disruptions: The tariffs are already causing order delays and frozen inventory, which could lead to shortages for American consumers.

• Price Increases: The increased costs are likely to be passed on to consumers, making footwear less affordable, especially for budget-conscious shoppers.

The FDRA also dismisses the argument that the tariffs will lead to a resurgence of domestic footwear manufacturing. They argue that the significant capital investment and long lead times required to shift production make this an unrealistic prospect. In fact, they say, the tariffs, which also apply to manufacturing equipment, create further uncertainty and discourage such investment.

The letter urges the Trump administration to adopt a more targeted approach to tariffs, focusing on strategic items rather than essential consumer goods. The FDRA warns that the current policies will inflict significant harm on American workers, families, and the overall economy.