Footwear Tariffs

FDRA Speaks Out: Could Section 301 Tariffs on Footwear be Lifted?

PUdaily | Updated: May 6, 2024

U.S. Section 301 tariffs on footwear has had a profound impact on the American footwear industry. Not only has it caused significant distress to major footwear exporters such as China, but Matt Priest, CEO of the Footwear Distributors & Retailers of America (FDRA), has also called for the elimination of tariffs on footwear.

Since the tariffs were implemented, retail prices for footwear have sharply risen, marking the fastest growth in years and sending a rather alarming signal. Footwear, considered an essential item, has directly felt the impact of tariff increases, with a significant portion of the tariff pressure being passed on to end consumers. The consequent price hikes have placed a heavy economic burden on working-class families. Footwear is taxed at an average rate of 12% in the U.S., while all other imported consumer goods are taxed at an average rate of just 2%, according to FDRA. The working class faces with these high tariffs when purchasing footwear, especially from brands that were meant to be more affordable, further exacerbating financial strains on households.

Of particular concern is the impact of tariffs on kids’ shoes. Kids’ shoes, being a category where replacements are more frequent, experience a compounded effect of tariffs on their prices. Some kids’ shoes have seen their tariff rates double, leading to sharp price increases. This places families under even greater economic strain, especially amid persistently high inflation rates.

The FDRA views the elimination of the 301 tariffs on footwear as an urgent necessity. By eliminating these tariffs, the government could provide direct economic relief to American families due to lowered footwear prices. This move would not only ease the financial burden on consumers but also foster competition in the footwear market, reducing the impact on consumers.

https://www.pudaily.com/Home/NewsDetails/46841