Trump's Tariff Policy for 2025 Increases Shoe Prices: Brands such as New Balance Face Pressure from Rising Import Costs

At the beginning of 2025, the Trump government implemented a new tariff policy, imposing tariffs as high as 125% on footwear products imported from countries like Vietnam and China, resulting in higher costs in the U.S. footwear market. Even though brands like New Balance stress "Made in USA," price hikes are unavoidable due to their reliance on imported materials. U.S. shoe manufacturing makes up just 1% of the market, and consumer spending is expected to go up, with shoe prices generally rising by 10% to 15%. This policy is intended to encourage the return of American manufacturing, but the supply chain's dependence on Asia makes it hard to avoid cost pressures.

The Reality of the U.S. Shoe Industry: New Balance Also Struggles with Rising Costs

In a Boston shoe store, sales associate Ruby highlights the "Made in USA" series of New Balance to customers, emphasizing that over 70% of the production process is completed in the United States, with high-quality leather and workmanship. However, this "Made in USA" label does not mean complete detachment from the global supply chain. According to reports, while New Balance assembles in the U.S., some raw materials still need to be imported from Southeast Asia, particularly Vietnam.

For example, a pair of shoes costing about $20, if imported from Vietnam, would see the import cost increase to $29.2 due to the current tariff rate (46%). This cost increase not only squeezes the brand's profit margins but will inevitably be passed on to consumers. Ruby admits, "If New Balance raises their official pricing, we will have to increase our prices as well because our costs will also rise."

Tariff Impact Widens: From Sports Shoes to Fashion Brands

New Balance is not the only brand affected. According to Matt Priest, president of the Footwear Distributors and Retailers of America (FDRA), 99% of footwear products in the U.S. market are imports, mainly from China, Vietnam, and Indonesia. These countries now face tariffs as high as 125%, causing the price of sneakers originally priced at $180 to potentially soar to $250.

International brands like Adidas, Nike, and Puma are not spared either. Analysis indicates that the prices of these brands in the U.S. market are expected to rise by 10% to 15%. Although some brands may delay price increases by absorbing part of the costs or adjusting their supply chains, the long-term trend of rising prices is hard to reverse.

Consumer Spending Pressure Intensifies: Rising Shoe Prices Become the New Normal

According to a BBC report, the Trump administration announced a new round of tariff policies on April 2, 2025, imposing a 10% base tariff on almost all imported goods, with Chinese goods facing as much as 145%. This has led to a comprehensive rise in the prices of daily necessities such as footwear, clothing, and electronics. Yale University predicts that if consumption patterns remain unchanged, annual spending for American households will increase by about $4,700.

In the footwear market, this pressure has already begun to reflect in consumer behavior. Sneaker collector Mr. Chen points out, "Many shoes are getting more expensive not because of hype, but because costs have really gone up. Especially for some comfortable, high-repurchase rate shoes, prices will only continue to rise."

Manufacturing Repatriation Fails to Solve Urgent Issues: U.S. Shoe Production Accounts for Only 1%

Although the Trump administration emphasizes that the purpose of tariff policies is to promote the return of American manufacturing, industry analysis shows that currently, domestic U.S. shoe production accounts for only 1% of the market total. This means that even if some brands like New Balance attempt to set up factories in the U.S., the overall supply chain cannot escape dependence on Asia.

Moreover, the cost and time cost of manufacturing repatriation are extremely high. Footwear products involve a lot of manual labor and multiple processes, and if production is completely shifted to the U.S., it will face higher labor and facility costs, further driving up the final retail price.

Retailers' Response: Price Transparency and Consumer Education

Facing the cost pressures brought by tariffs, many brands choose to directly indicate "Trump Tariff Surcharge" on price tags, with companies like Jolie Skin and Dame listing additional fees on invoices, emphasizing that price increases are not due to voluntary corporate adjustments but are a result of policy.

Footwear retailers are also beginning to enhance communication with consumers, explaining the reasons for price changes. Although this strategy of transparency cannot completely eliminate consumer dissatisfaction, it helps maintain consumer trust in the brand.

Trump's Tariff Policy for 2025 Increases Shoe Prices: Brands such as New Balance Face Pressure from Rising Import Costs

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