Why do shoe manufacturers claim new tariffs would be catastrophic?

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New Tariffs Threaten Catastrophe for US Shoe Industry Due to Increased Costs and Consumer Burden

Shoe manufacturers, including major brands like Adidas, Nike, and PUMA, along with over 170 other American companies, have stated that proposed additional tariffs on Chinese goods would be catastrophic. They argue that these tariffs would significantly increase costs for businesses and consumers, ultimately harming the American economy. The industry already faces substantial duty payments, and further taxes would exacerbate these financial pressures.
Increased Cost Burden on Consumers and Companies

The coalition of shoe manufacturers and retailers explicitly stated that an additional 25% tariff on footwear would be "catastrophic for our consumers, our companies, and the American economy as a whole." This indicates a direct apprehension that the financial burden of these tariffs would not be absorbed by manufacturers or the Chinese government, but rather passed on to the end consumer. The industry already contributes approximately US$3 billion annually in duties, suggesting that any additional tariffs would represent a significant escalation of existing costs.
Refutation of Tariffs Being Paid by China

In direct opposition to President Trump's assertions, the companies clarified that "US consumers pay for tariffs on products that are imported." This statement underscores their belief that the economic impact of tariffs ultimately falls upon the purchasing public in the United States, rather than being a source of revenue paid by China. This misunderstanding of tariff economics, they imply, leads to policies that disproportionately affect American households and businesses.
Inability to Quickly Relocate Production

The manufacturers highlighted the logistical complexities and long-term planning required to shift production facilities. They explained that moving factories away from China "requires years of planning" and that "companies cannot simply move factories to adjust to these changes." This implies that even if companies wished to avoid the tariffs by relocating, the immediate imposition of new duties would leave them with no viable short-term alternative but to absorb increased costs or pass them on, leading to the predicted catastrophic outcomes.

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Why do shoe manufacturers claim new tariffs would be catastrophic?

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