HOW TARIFFS HAVE SHAPED THE
RETAIL FOOTWEAR LANDSCAPE
BUSINESS INSIGHT: TARIFFS
FROM THE PERSPECTIVE OF AN OLD SHOE DOG
BY ALAN MIKLOFSKY
Introduction
During Donald Trump's presidency, tariffs on
various consumer goods, including footwear,
significantly impacted the retail industry. Some
of these tariffs remain in place today. is ar-
ticle provides a comprehensive review of how
I believe these tariffs influenced the footwear
market, examining the changes, challenges,
and consumer responses from the perspective
of a seasoned industry observer.
Tariffs Overview
1. Section 301 Tariffs: As part of the trade
dispute with China, the Section 301 tariffs
imposed on Chinese-made footwear ranged
from 10% to 25%, depending on the product
category. is had a notable effect on the U.S.
footwear market, given the substantial volume
of shoes imported from China.
2. USMCA: e United States-Mexico-Canada
Agreement (USMCA) replaced NAFTA and
included changes to trade rules, including
those affecting footwear. While the USMCA
did not introduce new tariffs on footwear, it
updated trade regulations and rules of origin,
potentially altering the dynamics of trade
among the U.S., Mexico, and Canada.
Impact on the Footwear Industry
1. Increased Costs: e Section 301 tariffs led
to higher costs for importing footwear from
China. Retailers and manufacturers often
passed these costs onto consumers, resulting
in increased retail prices for footwear.
2. Supply Chain Adjustments: To mitigate the
impact, some companies shied their sourcing
to countries outside of China or absorbed some
of the cost increases. ese adjustments were
challenging and time-consuming, affecting
both pricing and product availability.
3. Consumer Impact: e overall increase
in retail prices was particularly noticeable for
products heavily sourced from China. is
price increase had several downstream effects
on the market.
Industry Response
1. Legal Challenges: Footwear organizations
and companies filed lawsuits challenging the
legality of the tariffs, arguing they violated
For more information on Alan, visit his LinkedIn page at: https://www.linkedin.com/in/alanmiklofsky
18 Footwear Insight Business Report Quarterly ~ Q3 October 7 2024 footwearinsight.com
