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Footwear sector fears tariffs

Footwear is one of the most heavily imported products in the US. Ninety-eight per cent of shoes are manufactured abroad, with nearly three-quarters of those imports coming from China. Shoe companies rely heavily on Chinese-made goods, despite efforts to move more of their operations to countries like Vietnam and Cambodia in recent years. Last year, the United States imported 14.8 billion dollars worth of shoes from China, making footwear the fifth-largest category of Chinese imports.

Looming tariffs could ground footwear brands. Footwear tariffs tend to be among the most regressive. The lowest-priced shoes – children’s fabric tennis shoes -- have the highest tariffs, while higher-end men’s leather dress shoes are taxed a lot less. Canvas shoes come with particularly hefty tariffs -- as high as 68.5 per cent. Women’s and children’s shoes often come with much higher tariffs than shoes for men.

The industry is on high alert since the US may extend tariffs to all imports from China. Brands say more shoe tariffs would mean higher costs for footwear consumers and fewer US jobs and that any action taken to increase duties on Chinese footwear will have an immediate and long-lasting effect on American individuals and families. Even if footwear imports escape additional tariffs, continued uncertainty could further roil an industry that has had tepid growth in recent years.

 
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