Donald Trump has outlined more details about the tariffs he plans to enact when he enters office again in January for his second term — and they could have even more dire consequences for the footwear industry than initially expected.
The president-elect said he plans to impose a 25 percent tax on all products entering the U.S. from Canada and Mexico, plus an additional 10 percent tariff on imports from China. That’s after Trump vowed earlier this year to impose a 10 to 20 percent tariff on imports from all foreign countries and an additional 60 to 100 percent tariff on imports specifically from China.
With 99 percent of shoes sold in the United States imported from primarily China, Vietnam and Indonesia, Trump’s proposed tariff plans could vastly increase the cost of footwear for consumers in the U.S. The proposed tariffs on Mexico would also impact companies like Steve Madden that have attempted to nearshore production to the region that could now be subject to higher tariffs.
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According to a recent survey from Bain & Company, 81 percent of CEOs and chief operating officers said that nearshoring and onshoring are integral to their future plans. Mexico had recently been a notable beneficiary of the movement, unseating China as the U.S.’ biggest trading partner for the first time in two decades last year.
Steve Lamar, president and chief executive officer of the American Apparel and Footwear Association (AAFA), warned of the inflationary impact that additional tariffs in Mexico could have on the footwear industry and consumers at large.
“Mexico is a significant trading partner in the footwear field, particularly for leather goods. While it may take a few months before these Trump Taxes show up as spiraling prices for consumers, the newly proposed tariffs on U.S. imports from Mexico, Canada, and China (affecting more than half of all trade) will undoubtedly be inflationary for all Americans on essential everyday goods,” Lamar said in a statement. “These threats tear down the one trade agreement Trump takes credit for in his previous term — United States-Mexico-Canada Agreement (USMCA).”
Matt Priest, president and chief executive officer of the Footwear Distributors and Retailers of America, also noted how the new tariff proposals could impact shoe prices for American consumers.
“We hope President-elect Trump rethinks these tariffs as they relate to footwear, as such measures would place an unnecessary burden on American families when budgets are already stretched thin,” Priest said in a statement. “A 25 percent tariff on products from Mexico and Canada and a 10 percent tariff on goods from China would directly increase costs for retailers and consumers, leading to higher prices on everyday essentials like shoes.”
A study from the National Retail Federation (NRF) earlier this month found that if implemented, Trump’s tariffs could cost US consumers between $46 billion and $78 billion each year. Within footwear in particular, the study found that U.S. consumers could pay between $6.4 billion to $10.7 billion more for footwear a year.
