The American Footwear Association warns Trump about the threat of tariffs, as 76 brands, including Nike, request exemptions to avoid inventory shortages and price increases.

On April 29, 2025, the Footwear Distributors and Retailers of America (FDRA), representing 76 brands including Nike and Adidas, sent a letter to former President Trump requesting an exemption from the high import tariffs on countries including China, Vietnam, and Cambodia, with tariff rates ranging from 145% to 220%. The FDRA warned that these tariffs would threaten the survival of the footwear industry, resulting in business closures, inventory shortages, and price hikes, and would not help bring manufacturing back to the United States.

Rising Tariff Pressure, Footwear Industry Issues Urgent Appeal

On April 2nd, 2025, the Trump administration announced the reinstatement of high reciprocal tariffs on several trade partners, including key countries in the U.S. footwear supply chain such as China, Vietnam, and Cambodia. According to the FDRA, the effective tariff rate on imported footwear from China has reached up to 145%, while the initial rates for Vietnam and Cambodia have temporarily dropped to 10%, but are expected to revert to over 45% by early July.

These tariffs are added on top of an already high import tax of 37.5%, causing the overall tariff burden on footwear products to skyrocket to between 150% and 220%. The FDRA noted in a letter that this is almost unbearable for companies that primarily produce affordable footwear and serve low- to middle-income families.

Industry Joint Petition Warns of "Survival Threat"

In a letter co-signed by 76 brands, industry players stated bluntly: "This is an emergency situation that requires immediate attention and action." The letter emphasized that many companies cannot pass the costs onto consumers or rapidly adjust their supply chains and business models. Without immediate exemptions, they face the risk of closure.

Brands like Nike, Adidas, Under Armour, Puma, Deckers Brands, and VF Corp participated in the joint letter. These companies pointed out that many orders have been forced to halt, leading to a potential short-term shortage of footwear inventory in the U.S. market, further driving up retail prices.

"Made in America" Not Feasible, Supply Chain Adjustments Difficult

The letter also clearly stated that tariffs cannot bring manufacturing back to the U.S. The FDRA explained that bringing the footwear manufacturing industry back to the U.S. requires significant capital investment and years of planning, and the current tariff policy instead disrupts the expected stability needed for companies to reorganize their supply chains.

"These tariffs will not bring shoe factories back to the U.S.; instead, they prevent companies from making long-term investment decisions," the letter stated. Industry players noted that footwear production heavily relies on the mature supply chain and labor structure in Asia, which cannot be replicated in the U.S. in the short term.

Immediate Impact: Inventory Shortages and Price Increases

According to the FDRA and several brands, some goods that have already been shipped are gradually arriving at U.S. ports, but companies cannot afford the sudden high tariffs, leading to increased cash flow pressure. If unable to pay these tariffs, some companies may face bankruptcy before July.

Adidas has publicly stated that if tariffs persist, it will have to raise prices on key models like the Samba and Campus. Nike noted in its late March earnings call that global tariffs and economic uncertainty have pressured its quarterly revenue. Skechers also withdrew its annual financial forecast due to policy uncertainty.

Potential Impact of Tariffs on Consumers and Employment

The FDRA pointed out in the letter that these tariffs will directly impact U.S. consumers, especially low- to middle-income families. Since affordable footwear cannot absorb the high tariff costs, prices are bound to rise, further squeezing household spending capacity.

Additionally, the industry warned that if companies close or downsize, it will lead to the loss of tens of thousands of jobs in the U.S. footwear industry. The letter stated: "Hundreds of companies face the risk of closure, and tens of thousands of jobs are in jeopardy."

Industry Calls for More Targeted Trade Policies

At the end of the letter, the FDRA and co-signing brands urged the Trump administration to adopt more strategic trade policies, applying tariffs specifically to strategically important goods rather than basic consumer goods like footwear. They emphasized that the footwear industry is not the root cause of trade imbalances and should not be a casualty of trade wars.

The White House has yet to formally respond to this letter.

The American Footwear Association warns Trump about the threat of tariffs, as 76 brands, including Nike, request exemptions to avoid inventory shortages and price increases.

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