Shoe manufacturers, including Nike and more than 70 others in the U.S., petition for the shoe industry to be exempted from reciprocal responsibilities.
Here's the Deal:
April 29th saw a petition signed by 76 footwear brands, including the likes of Nike, Adidas, Crocs, Puma, and more. They cried foul over the imposed tariffs, labeling them an "existential threat" to the footwear industry. The grim letter to the U.S. President painted a bleak picture, stating that countless businesses may shutter and jobs for tens of thousands could vanish. According to the association, numerous orders have already been halted, and the supplies of footwear for U.S. consumers are running low. The footwear industry has taken a beating due to earlier tariffs, and they want a more targeted approach this time—one that focuses on critical goods rather than consumer essentials.
Adidas sounded the alarm, stating that tariffs would jack up the cost of their products in the U.S., without revealing the exact prices while Skechers, which depends on 38% of its U.S. sales for products manufactured in China, decided to hold off on projections.
On April 9th, the U.S. introduced "reciprocal" tariffs for several countries, which kicked in almost immediately. Less than an hour later, President Trump announced a 90-day suspension of duties for almost 75 countries that didn't hit back with retaliation, setting a base rate of 10%. The relief does not extend to China as yet. With the existing tariffs, China is now facing an effective rate of 145%, White House officials confirmed. Beijing hit back by raising tariffs for the U.S. to 125%, effective from April 12th. Trump hinted at the possibility of negotiating a trade deal with China on April 22nd.
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This breakdown reveals the potential implications and challenges faced by the footwear industry, particularly brands like Nike, Adidas, and Skechers, in the face of proposed tariffs that threaten their sustainability, profitability, and consumer base. The industry is advocating for a deal with China to ease or eliminate tariffs on imported footwear to help mitigate these effects.
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- #Tariffs
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- #Nike
- #Adidas
- #Skechers
- #Business
- The footwear industry, including brands like Nike, Adidas, and Skechers, warned that the tariffs imposed on their products could be an existential threat, leading to potential business closures and job losses.
- Adidas and Skechers, two footwear brands sensitive to tariffs, have expressed concerns about the impact of increased prices on their products due to the proposed tariffs.
- On April 29th, 76 footwear brands, including Nike, Adidas, and Skechers, signed a petition urging the U.S. President to reconsider tariffs as they see them as a major challenge to the footwear industry's sustainability, profitability, and consumer base.
- The footwear industry in the U.S. is calling for a more targeted approach to tariffs, advocating for a deal with China that would ease or eliminate tariffs on imported footwear to reduce the financial strain on their businesses.
