Nike warns of crisis over new tariffs in letter to Washington

The Footwear Distributors & Retailers of America trade group (FDRA) advised US President Donald Trump to exempt shoes from reciprocal taxes in a note signed by makers including Nike, Adidas America and Skechers.

Industry Leaders Sound Alarm on Soaring Costs

A coalition of 76 major footwear companies, including Deckers Brands, Capri Holdings, Under Armour, and VF Corp, has signed a letter dated April 29 warning the U.S. government about the severe consequences of the latest round of tariffs. The letter, spearheaded by the Footwear Distributors and Retailers of America (FDRA), highlights the already steep import duties—some as high as 20% to 37.5%—that burden the industry, particularly on children’s shoes.

Backdrop: Trump’s Aggressive Tariff Policy

Also read: Apple feels heat from Trump’s trade turmoil

The urgent appeal follows former President Donald Trump’s imposition of sweeping tariffs in early April, including 145% duties on Chinese imports. These broad-based measures have strained global supply chains and raised fears of price surges for U.S. consumers.

Beijing has acknowledged Washington’s offer to negotiate, with China’s Commerce Ministry stating that it is currently “evaluating” the proposal. However, tensions remain high, and businesses are grappling with the uncertainty.

Footwear Giants Hesitate on Forecasts Amid Trade Uncertainty

Major industry players are already adjusting their outlooks in response. Adidas and Nike despite reporting strong Q1 earnings, refrained from raising its 2025 financial forecast, citing trade policy unpredictability. Similarly, Skechers withdrew its annual guidance, explicitly blaming the “erratic” direction of U.S. trade policy under the Trump administration.

Industry Pleads for Strategic Tariff Adjustments

In the letter, the FDRA warns:

“Given the nature of the U.S. footwear industry, American footwear businesses and families face an existential threat from such substantial cost increases. Hundreds of businesses face the prospect of closure.”

Call to Action: Rethink Blanket Tariffs

The industry is urging the government to reconsider its blanket approach and instead adopt “a more targeted approach, focused on strategic items rather than basic consumer goods.” The goal is to protect vulnerable businesses and consumers from what they see as unnecessary economic harm.