Shoe giants are urging President Trump to stop imposing high import tariffs on goods from China, saying it will disproportionately affect the working class.
173 shoe brands have signed a letter to the US president claiming that, while the average US tariff on shoes is 11%, in some cases it can reach as high as 67%.
Nike, Adidas and Dr Martens are among the shoe giants calling for the dispute’s end.
The US and China failed to reach a trade deal over a week ago, which led Mr Trump to raise tariffs on $200bn of imported Chinese goods from 10% to 25%.
In response, China announced plans to raise levies on $60bn of US imports from 1 June.
When he raised tariffs, Mr Trump tweeted that companies should focus more on production within the US to reduce costs.
China buys MUCH less from us than we buy from them, by almost 500 Billion Dollars, so we are in a fantastic position. Make your product at home in the USA and there is no Tariff. You can also buy from a non-Tariffed country instead of China. Many companies are leaving China…..
— Donald J. Trump (@realDonaldTrump) May 14, 2019
However, companies like Converse and Clarks wrote in the letter:
“Footwear is a very capital-intensive industry, with years of planning required to make sourcing decisions, and companies cannot simply move factories to adjust to these changes.
“Adding a 25% tax increase on top of these tariffs would mean some working American families could pay a nearly 100% duty on their shoes.
“This is unfathomable.”
What’s the deal with the US and China?
There is not a deal – and that is the problem.
Often dubbed a tech and trade cold war between the two countries, relations between Washington and Beijing continue to worsen.
Trump has complained about China’s trading practices since before he took office in 2016.
The US launched an investigation into China’s trade policies in 2017. It imposed tariffs on billions of dollars worth of Chinese products last year, and Beijing retaliated in kind.
After months of hostilities, both countries agreed to halt new trade tariffs in December to allow for talks.
But now those talks have broken down, which has led Trump to raise tariffs further.
Shoemakers and other manufacturing companies fear more retaliation from China, warning of a “catastrophic” effect on consumers and the working class.
