According to statistics from the World Bank, nearly 60% of the US imported footwear products came from China in 2017, and almost all shoes sold in the United States are imported.
On May 10, the United States announced that it would raise the tariff on about $200 billion of Chinese imports from 10% to 25%. Trump also announced that it would impose tariffs on other Chinese goods. Although Trump insists that the tariff imposed on China will be paid for by China, in fact these "bad consequences" will be borne by American companies that import goods from China. At this time, they either choose to reduce their own profits, or increase the price to pass the cost on to consumers, and they often choose the latter.
In order to understand how the US imposes a 25% tariff, it will require additional costs for US consumers. The US Footwear Trade Organization FDRA has made detailed estimates.
The table below shows the current cost of a pair of imported sneakers, boots and children's shoes:
The following are the costs of these shoes after an additional 25% tariff:
Judging from the price increase of a pair of shoes, the new tariff does not seem to have much impact on American consumers, but if the cost of items including clothing is included, it is clear that they will need to bear an additional fee. . Last year, according to estimates by the American Apparel and Footwear Association, the addition of a 25% tariff may cost an American family of four an additional $500 in shoes and clothing per year.
Since the shoemaking process is much more complicated than the garment production, it is more difficult for most shoe companies to transfer the production line. But in order to avoid falling into the worst situation, several large sports shoe companies including Nike, Adidas and An Dema have already begun to move their production lines in China.
After the news of the intensification of Sino-US trade war situation, some American shoe companies' stocks are in a downward trend. Matt Priest, president of FDRA, said that if the United States imposes a 25% tariff on footwear, American consumers may lose more than $7 billion a year. And he also pointed out that this is only a "conservative" estimate.