Footwear giants Nike, Adidas and others ask Trump for tariff exemption

Footwear giants Nike, Adidas and others ask Trump for tariff exemption


A man shops for shoes at a Nike outlet store in Los Angeles on April 10, 2025.

Frederic J. Brown | Afp | Getty Images

America’s largest shoe brands are asking President Donald Trump for a tariff reprieve.

The Footwear Distributors and Retailers of America trade group sent a letter to the White House this week asking for an exemption to Trump’s so-called reciprocal tariffs, which the association said pose an “existential threat” to the footwear industry. The letter is signed by 76 footwear brands, including Nike, Adidas, Skechers and Under Armour.

“Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs. Without immediate relief from the reciprocal tariffs they will simply shutter,” reads the letter, which is dated April 29.

“Many orders have been placed on hold, and footwear inventory for U.S. consumers may soon run low,” the trade group said.

Trump’s wide-sweeping tariffs, announced on April 2, included levies on several countries that are important sources for footwear suppliers, including China, Vietnam and Cambodia. While the initial tariff rates of more than 45% for Vietnam and Cambodia were lowered to 10% for a 90-day period, the Trump administration has only ratcheted up duties on Chinese imports, which are now subject to an effective tariff rate of 145%.

Trump’s higher tariffs on dozens of trade partners are set to resume in early July.

Adidas previously warned this week that tariffs would lead to higher prices for American consumers. In late March, before the specific reciprocal tariff rates were announced, Nike’s finance chief said global levies and economic uncertainty would result in lower current-quarter sales.

The footwear association’s letter said the industry had already been facing significant duties on products such as children’s shoes before Trump announced his broad tariffs. In total, U.S. footwear companies will face tariffs ranging between 150% and about 220%, the trade group said.

“This is an emergency that requires immediate action and attention. The American footwear industry does not have months to adjust business models and supply chains while absorbing this unprecedented and unforeseen tariff regime,” the association wrote.

The group further warned that the tariffs will not result in bringing manufacturing back to the U.S., as Trump has promised, because they erase the certainty that businesses require in order to invest in sourcing changes.

The White House did not immediately respond to CNBC’s request for comment.

Don’t miss these insights from CNBC PRO



Source

Chipotle cuts same-store sales forecast for third straight quarter as diner visits drop again
Business

Chipotle cuts same-store sales forecast for third straight quarter as diner visits drop again

A customer carries a Chipotle bag in San Francisco, California, US, on Friday, Jan. 31, 2025. David Paul Morris | Bloomberg | Getty Images Chipotle Mexican Grill on Wednesday reported quarterly revenue that fell short of expectations and cut its same-store sales forecast for the third straight quarter. Chipotle is expecting its full-year same-store sales […]

Read More
Starbucks is about to report earnings. Here’s what to expect
Business

Starbucks is about to report earnings. Here’s what to expect

The American multinational chain Starbucks Coffee store and logo seen displayed. Sopa Images | Lightrocket | Getty Images Starbucks is expected to report its quarterly earnings after the bell on Wednesday. Here’s what Wall Street analysts surveyed by LSEG are expecting the company to report for its fiscal fourth quarter: Earnings per share: 56 cents […]

Read More
Paramount to lay off 1,000 employees, with more cuts expected
Business

Paramount to lay off 1,000 employees, with more cuts expected

The logo and lettering of Paramount Skydance Corporation can be seen at a Paramount stand at the Media Days in Munich (Bavaria, Germany). Matthias Balk | Picture Alliance | Getty Images Paramount Skydance is slashing nearly 1,000 jobs beginning on Wednesday, just months after the close of its merger, according to a person close to […]

Read More