Nike, Adidas call on Trump to waive import tariffs

Nike shoes in a store in New York (USA). Photo: Reuters — Nike shoes in a store in New York (USA)

This week, the Footwear Distributors and Retailers of America (FDRA) sent a letter to the White House asking for an exemption from President Donald Trump’s reciprocal tariffs, which FDRA said posed an “existential threat” to the footwear industry. The letter, dated April 29, was signed by 76 footwear brands, including Nike, Adidas, Skechers, and Under Armour.

“Many companies that make affordable shoes for the working and middle classes cannot afford such high tariffs. They also cannot pass the costs on to consumers. Without immediate reciprocal tax relief, they will have to close their doors,” the letter said.

The association also warned that many orders have been delayed. Shoe inventories for American consumers could soon run out.

On April 9, US President Donald Trump announced high reciprocal tariffs on dozens of trading partners. However, just half a day later, he announced a 90-day delay for most economies , with China alone having its tariffs raised to 125%. Currently, almost all of America’s trading partners are subject to a common 10% tax when exporting to the US. Among them are many countries that are important suppliers for the footwear industry, such as China, Vietnam and Cambodia.

Adidas warned this week that the tariffs would increase the price of shoes for American consumers. In late March, before the US president announced the reciprocal tariffs, Nike’s chief financial officer also predicted a decline in quarterly revenue due to tariffs and economic uncertainty. Nike makes about half of its footwear in China and Vietnam, with factories in Vietnam accounting for 25% of output.

The letter said that even before Mr. Trump announced the new tariffs, the US footwear industry was already facing high tariffs on products such as children’s shoes. In total, footwear companies here will face import taxes of 150-220%, according to the association’s estimates.

“This is an emergency situation that requires immediate action. The US footwear industry cannot quickly adjust its business model and supply chain in the face of such unprecedented tariffs,” the letter said.

The association also warned that the tariffs would not bring manufacturing back to the US as Mr Trump had promised. They said they would only destabilise businesses needed to invest in changing their supply chains.

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Source: https://baohaiduong.vn/nike-adidas-keu-goi-ong-trump-mien-thue-nhap-khau-410727.html