Footwear industry leaders said Monday that U.S. Supreme Court arguments over the legality of President Trump\u2019s tariff policies will determine whether companies face years of higher costs and constrained growth, or potential relief that could ease pressure on consumers and preserve jobs.<\/p>\n
On a press call, Matt Priest, president and CEO of the Footwear Distributors and Retailers of America (FDRA), said the industry now pays nearly $5 billion annually in tariffs \u2014 up from $3 billion in a typical year. \u201cIn a typical year, we bring nearly two and a half billion pairs of shoes into this country. That\u2019s over seven pairs of shoes for every person in America,\u201d he said. \u201cWe have always carried a heavy tariff burden, but now it is climbing sharply.\u201d<\/p>\n
The higher duties are already showing up in consumer prices, Priest said. Women\u2019s footwear rose 2.8% in August, compared with a 1.4% increase for footwear overall. Tariff collections in July doubled year over year to $135 million, a 108% jump.<\/p>\n
Priest said a court ruling against the tariffs could free up capital for companies to reinvest. \u201cWe can envision maintaining jobs or even increasing jobs for American companies,\u201d he said. \u201cYou might actually see prices go down because margins will be restored.\u201d<\/p>\n
Pat Mooney, president of Footwear Unlimited, said tariffs have upended business models across the sector. He estimated that average duties, long around 10%, now range between 25% and 30%. \u201cTariffs have been brutal,\u201d Mooney said. \u201cThe greater the uncertainty, the less you\u2019re willing to invest, the less you\u2019re willing to risk.\u201d<\/p>\n
Mooney added that companies are slowing hiring and delaying expansion. \u201cIt\u2019s tough to model profitability when costs change so quickly,\u201d he said. \u201cThat affects expansion, going after new markets, everything.\u201d<\/p>\n
The footwear industry, which imports 99% of shoes sold in the United States, faces added strain as several retailers have filed for bankruptcy this year. Executives warned that if tariffs remain in place, more companies could follow.<\/p>\n
The Supreme Court is expected to hear the tariff case later this year.<\/p>\n","protected":false},"excerpt":{"rendered":"
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