Nike, Adidas Say Tariffs An "Existential Threat," Orders Put On Hold

The Footwear Distributors and Retailers of America trade group sent a letter to the White House this week asking for an exemption to Trump’s so-called reciprocal tariffs, which the association said pose an “existential threat” to the footwear industry.

“Many orders have been placed on hold, and footwear inventory for U.S. consumers may soon run low,” the trade group said.

The letter is signed by 76 footwear brands, including Nike, Adidas, Skechers, and Under Armour.

“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 association wrote.

Before the specific reciprocal tariff rates were announced, Nike’s finance chief said global levies and economic uncertainty would result in lower current-quarter sales.

“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,” reads the letter, which is dated April 29.

Adidas had already declared that tariffs would lead to higher prices for American consumers.

The footwear association’s letter said the industry had already been facing significant duties on products such as children’s shoes before Trump announced his broad tariffs. In total, U.S. footwear companies will face tariffs ranging between 150% and about 220%, the trade group said.

The Trump administration imposed duties on Chinese imports, which now have an effective tariff rate of 145%. Vietnam and Cambodia's initial tariff rates of more than 45% were lowered to 10% for 90 days.

China, Vietnam, and Cambodia are important supply networks for footwear.

Trump’s higher tariffs on dozens of trade partners are set to resume in early July.

The Footwear Distributors group further warned that the tariffs erase the certainty that businesses require in order to invest in sourcing changes. It will not result in bringing manufacturing back to the U.S., as Trump has promised.

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