Pres. Trump’s 10% Shoe Tariffs

Please contact apolk@fdra.org for any media interviews on this topic. 

Background:

President Trump announced via Twitter on August 1st that the U.S. will impose added tariffs of 10 percent on the remaining $300 billion in goods from China. This decision includes all footwear from China.

Update (8/13): President Trump has delayed the additional 10% duty on certain types of footwear until December 15th, but will impose tariffs for other types of footwear on September 1st. FDRA’s President and CEO Matt Priest issued the following statement:

“The announcement today that the Trump Administration will be delaying the additional 10% tariff on some footwear until December 1st is an acknowledgement that tariffs are indeed paid by Americans. It is no coincidence that the Administration is allowing certain shoes to come in without raising taxes in hopes that prices do not rise at retail during the holidays. Our industry’s loud unified voice left a clear impression that shoe tariffs are already extremely high, upwards of 67.5%, and any further tariffs would directly raise costs on consumers and cost footwear jobs.  While we are pleased with the decision to delay new tariffs on certain shoes, we are not satisfied.  We will continue to fight for any exclusions on new tariffs and we will fight to delay new tariffs on shoes until the entire tariff threat is lifted off the backs of American families.”

99% of all shoes sold in America are imported, 70% of all shoe imports are from China. Footwear tariffs are already some of the highest on any consumer good, averaging 11% but reaching upwards of 48% and 67.5% on certain footwear types. Adding an additional 10% on top of these tariffs mean higher prices for consumers. In 2018 alone, consumers paid $7 billion more than needed at checkout. Another 10% on top of that means consumers would pay nearly $10 billion more for their shoes each year thanks to tariffs. Learn more here.

FDRA Consumer Impact Analysis of Additional 10% Duties on Shoes From China: 

  • A popular type of canvas “skate” sneaker currently retailing for $49.99 could increase to $58.69.
  • The price of a typical hunting boot could increase from $190 to $222.27.
  • And a popular performance running shoe could jump from $150 to $187.50.
  • 70% of all shoes sold in the U.S. are from China. Meaning nearly every American will see a very noticeable cost increase for footwear at checkout.
  • This will raise prices on U.S. consumers another $3 billion at retail each year.

Footwear Industry Quote:

FDRA President & CEO Matt Priest issued the following statement after President Trump tweeted that the U.S. will add 10 percent tariffs on the remaining $300 billion in goods from China, including footwear:

“We are dismayed at President Trump’s announcement that he is adding 10 percent tariffs on the remaining $300 billion in imported goods from China on September 1st. FDRA has worked tirelessly to make the case against even higher tariffs on shoes. We hoped that continued open communication channels between Washington and Beijing would allow time to ease trade tensions and eventually end the tariff threat. It is clear political considerations are outweighing economic common sense, especially as this comes on the heels of a rate drop by the Federal Reserve indicating more challenging economic times ahead.
President Trump’s new tariffs should concern every American. 70 percent of every pair of shoes sold in the U.S. comes from China. Footwear from China is already hit with upwards of 67 percent duties. President Trump is, in effect, using American families as a hostage in his trade war negotiations. Tariffs are taxes and this move will noticeably raise the cost of shoes at retail and will have a chilling effect on hiring in the footwear industry.
We will not take this news lying down. This is one of the largest tax increases in American history and it is vitally important that we fight this action on behalf of our consumers and our industry.”