Nike, Adidas, and 74 Footwear Companies Urge Trump to Drop Tariffs, Citing 'Existential Threat' to Industry

A coalition of 76 footwear companies, including Nike, Adidas, and Under Armour, urged President Trump to exempt shoes from new tariffs. Coordinated by the Footwear Distributors and Retailers of America, the letter warns that tariffs threaten the U.S. footwear industry, risking job losses, business closures, and price hikes. The tariffs, affecting imports from China, Vietnam, and Cambodia, could lead to shortages and financial strain, as companies struggle with increased costs. The industry calls for targeted trade policies, noting that tariffs won't boost U.S. manufacturing due to the industry's unique supply chain dynamics.

A Unified Industry Plea

The letter, dated April 29 and sent to the White House, was signed by a broad cross-section of the U.S. footwear industry. Signatories include global giants like Nike, Adidas, Puma, and Skechers, as well as American-based brands such as Columbia Sportswear, Wolverine Worldwide, Caleres, Genesco, and Deckers Brands. The FDRA, which represents the interests of the U.S. footwear sector, coordinated the appeal in response to the Trump administration’s reciprocal tariff plan, which imposes steep levies on imports from key manufacturing countries including China, Vietnam, and Cambodia.

The companies argue that the new tariffs, layered on top of already high existing duties, are unsustainable. “We are hit particularly hard by the tariff actions, because the U.S. government already places a significant tariff burden on our industry before any new tariffs are added,” the letter states. For example, children’s shoes already face tariffs of 20%, 37.5%, or higher. With the new reciprocal tariffs, total duties on some footwear products now range from 150% to nearly 220%.

Tariffs Without Domestic Benefit

The letter directly challenges the Trump administration’s rationale that tariffs will encourage domestic manufacturing. “These tariffs will not drive shoe manufacturing back to the U.S.,” the companies wrote. “We are in fact the one industry where tariffs do not significantly increase domestic production; tariffs just become a major impact at the cash register for every family.”

The industry contends that the capital investment and long-term planning required to shift sourcing or build domestic manufacturing capacity are incompatible with the uncertainty created by the current trade policy. “It takes significant capital investment and years of planning to shift sourcing,” the letter explains. “The new tariffs in fact remove the business certainty that is needed to make these types of investments and erase almost all the necessary capital.”

Immediate Financial Strain

The impact of the tariffs is already being felt. Many companies report that they are struggling to pay for merchandise that was shipped before the tariffs were announced but is now arriving at U.S. ports with dramatically higher duties. “Many of our companies do not know how, or even if, they are going to pay the costs of already shipped merchandise now arriving on U.S. shores,” the FDRA warned. “Hundreds of businesses face the prospect of closure. Tens of thousands of jobs are at stake.”

Footwear sales have already taken a hit. According to FDRA data, sales plunged 26.2% for the week ending February 22 compared to the same period last year, as fears over tariff-driven price increases spooked consumers. Some companies, including Columbia Sportswear and Skechers, have withdrawn their financial forecasts for the year, citing the unpredictability of the trade environment.

Consumer Impact and Supply Chain Disruption

The letter also highlights the potential consequences for American consumers. Many of the companies involved specialize in affordable footwear for working-class families. “Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs. Without immediate relief from the reciprocal tariffs they will simply shutter,” the letter states.

The industry is also warning of potential shortages. “Many orders have been placed on hold, and footwear inventory for U.S. consumers may soon run low,” the FDRA cautioned. With tariffs of 145% on Chinese imports and pending increases to 46% and 49% on Vietnamese and Cambodian imports respectively, the supply chain is under severe strain. These three countries are among the most critical sources of footwear production for the U.S. market.

A Call for Targeted Trade Policy

Rather than blanket tariffs, the footwear companies are calling for a more strategic approach. “We ask for a more targeted approach, focused on strategic items rather than basic consumer goods,” the letter urges. The industry maintains that footwear should not be treated the same as other goods in trade negotiations, given its unique supply chain dynamics and the lack of viable domestic alternatives.

Despite the urgency of the appeal, the White House has not yet responded to the letter. While President Trump has shown some willingness to grant temporary tariff relief to other sectors, such as consumer electronics and automobiles, it remains unclear whether the footwear industry will receive similar consideration.

Nike, Adidas, and 74 Footwear Companies Urge Trump to Drop Tariffs, Citing 'Existential Threat' to Industry

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