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Nike, Adidas and Other Footwear Brands Urge Trump for Tariff Exemption Amid Rising Costs

by Rounak Majumdar
May 5, 2025
in Business, News
Reading Time: 3 mins read
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Nike, Adidas and Other Footwear Brands Urge Trump for Tariff Exemption Amid Rising Costs

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A coalition of the world’s leading footwear brands, including Nike, Adidas, Skechers, Under Armour, and more than 70 other companies, has formally appealed to President Donald Trump to exempt footwear from the latest round of reciprocal tariffs. This urgent request, coordinated by the Footwear Distributors and Retailers of America (FDRA), comes as the industry faces what it describes as an “existential threat” from unprecedented tariff increases that could severely disrupt both businesses and consumers across the United States.

The letter, sent to the White House and signed by 76 prominent footwear brands, highlights the gravity of the situation. The FDRA warns that the new tariffs, when combined with already high import duties on shoes, could push total tariff rates for some American footwear companies to between 150% and 220%. Such a spike, the group claims, would not only endanger the survival of hundreds of businesses but also put tens of thousands of jobs at risk and potentially lead to widespread store closures.

Tariffs Threaten Jobs, Prices, and Supply Chains:

The footwear industry has long been subject to some of the highest tariffs in the U.S. import system, especially on children’s and lower-priced shoes. The new round of reciprocal tariffs, part of the Trump administration’s broader trade policy targeting key partners like China, Vietnam, and Cambodia, has sharply increased the pressure. For example, tariffs on imports from China now stand at 145%, while rates for Vietnam and Cambodia-major global footwear manufacturing hubs-were temporarily reduced but are set to rise again soon.

Industry leaders argue that these tariffs will not achieve the administration’s stated goal of bringing manufacturing back to the United States. The letter to President Trump emphasizes that moving footwear production to the U.S. would require years of planning and substantial investment, making it an impractical solution for most companies. Instead, the immediate impact is expected to be higher costs for American consumers, reduced inventory, and significant job losses as companies struggle to absorb or pass on the additional expenses.

The FDRA’s letter details the cascading effects already being felt: many footwear orders have been placed on hold, inventories are shrinking, and the risk of shortages for U.S. consumers is growing. Companies like Adidas and Skechers have already adjusted their financial forecasts, citing the unpredictability of the current trade environment. Nike’s leadership has also warned that ongoing tariff uncertainty could dampen sales and disrupt long-term planning.

Industry Leaders Call for Targeted Trade Policy:

The coalition of footwear brands is not simply asking for relief; it is also advocating for a more strategic approach to U.S. trade policy. The FDRA and its member companies argue that tariffs should be targeted at strategic items rather than broadly applied to basic consumer goods like shoes, which are essential for families across the country. They contend that the current approach risks inflicting unnecessary pain on American households, especially those with lower or middle incomes who rely on affordable footwear.

The industry’s appeal comes at a time of heightened uncertainty for global trade. President Trump’s sweeping tariffs, introduced in early April, have already caused volatility in financial markets and prompted reactions from major trade partners, including China, which is now evaluating proposals for further negotiations. The footwear sector’s reliance on global supply chains-particularly in Asia-means that any disruption can have rapid and far-reaching consequences.

Despite robust performance in the first quarter of 2025, Adidas and other brands have refrained from raising their financial outlooks, citing the unpredictable impact of tariffs. The FDRA’s letter underscores that the American footwear industry does not have the luxury of months to adjust business models or supply chains while absorbing these sudden and unforeseen costs.

Urgent Appeal for Immediate Action:

The message from the footwear industry is clear: the current tariff regime poses an emergency that requires immediate attention and action from the White House. The letter concludes with a direct plea to President Trump to remove footwear from any reciprocal tariff regime, warning that failure to do so could result in widespread business closures, job losses, and higher prices for American families.

Industry executives stress that the tariffs are not only unsustainable but also counterproductive, as they will not lead to a resurgence of domestic manufacturing. Instead, they argue, the tariffs threaten to undermine a sector that supports tens of thousands of jobs and provides essential products to consumers nationwide.

As the Trump administration considers its next steps, the outcome of this appeal will be closely watched by businesses, workers, and families alike. The stakes are high-not just for the footwear industry, but for the broader debate over the future of American trade policy and its impact on everyday consumers.

Tags: AdidasFootwear Distributors and Retailers of AmericaFootwear IndustryFootwear TariffsNikeSkechersTariff Exemption RequestTrade War ImpactUnder ArmourUS Trade Policy
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