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Tariffs upset US footwear

Footwear majors in the US are disappointed by the tariffs on Chinese imports.

Since higher tariffs will raise the cost of shoes, they would like footwear to be removed from the proposed list of Chinese imports with higher tariffs. Almost 70 per cent of shoes sold in the US come from China. Duties of over 67 per cent apply on footwear imported from China.

China is not only an important supplier but also a key customer base for footwear companies. The US-China trade war might create negative sentiment against US brands in China and cause Chinese consumers to prefer local brands. About 23 per cent of Nike’s footwear is sourced from China. Also China is a major apparel supplier for Nike. It accounts for 27 per cent of the company’s apparel business. Greater China accounts for about 17 per cent of Nike’s revenue. All of Skechers’ net sales are derived from sales of footwear manufactured in foreign countries, with most manufactured in China and Vietnam. Five key manufacturers in China, Vietnam, and Indonesia make up about 87 per cent of Under Armour’s footwear products. For Columbia Sportswear, China and Vietnam account for almost all of the company’s footwear production.

 
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