Footwear Giants Like Adidas, Nike Urge President Trump To Give Some Relief In Tariffs, Warn About Impact On Customers

Major US footwear companies are making a unified plea to the White House for relief from recently imposed reciprocal tariffs that they say are threatening the very survival of the sector.

A letter dated April 29, sent by the Footwear Distributors and Retailers of America (FDRA), outlined deep concerns over the impact of these duties on both companies and consumers, reported CNBC.

The communication, backed by 76 prominent brands such as Nike, Adidas, Skechers, and Under Armour, urged President Donald Trump to grant an exemption from the tariffs.

“Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs. Without immediate relief from the reciprocal tariffs they will simply shutter,” the letter warned.

The footwear industry, already grappling with long-standing duties on products like children's shoes, now faces even steeper barriers. According to the trade group, combined tariffs on footwear could climb as high as 220 per cent, with a range starting from 150 per cent. The FDRA emphasised the urgency of the matter, noting that “many orders have been placed on hold, and footwear inventory for US consumers may soon run low.”

Also Read : RBI Panel Proposes Extending Trading Hours For Call Money Market

Mounting Pressure from Rising Tariff Burden

The latest wave of tariffs, announced on April 2, affects a number of key sourcing countries, including Vietnam, Cambodia, and China. Although the US initially reduced Vietnam and Cambodia’s duties to 10 per cent for a temporary 90-day period, the rate on Chinese imports has surged to a staggering 145 per cent. These sweeping measures are expected to expand again in early July.

Adidas  cautioned that American shoppers will likely see higher retail prices, while Nike’s finance chief predicted reduced sales in the current quarter due to global economic instability and tariff concerns.

In the FDRA’s view, the trade policies not only jeopardise short-term operations but also undermine future business planning. “This is an emergency that requires immediate action and attention. The American footwear industry does not have months to adjust business models and supply chains while absorbing this unprecedented and unforeseen tariff regime,” the group stated. They further argued that these tariffs would not lead to domestic manufacturing growth, as intended, but rather introduce uncertainty that deters investment.

business