Donald Trump has just won the election for the U.S. presidency. And a new study from the National Retail Federation (NRF) has found that if implemented, his tariffs could cost US consumers between $46 billion and $78 billion each year.
The recent study from the retail trade group examined how Trump’s tariffs proposals could impact the following categories: apparel, toys, furniture, household appliances, footwear and travel goods. Trump’s proposed tariff plans include a 10 to 20 percent tariff on imports from all foreign countries and an additional 60 to 100 percent tariff on imports specifically from China. Within footwear in particular, the study found that U.S. consumers could pay between $6.4 billion to $10.7 billion more for footwear a year.
For example, the study revealed that a $50 pair of sneakers could rise to between $59 and $64 dollars.
On the other hand, Kamala Harris’ tariff policies were expected to be a continuation of President Joe Biden’s policies, which included keeping the burdensome Section 301 rates in place, which have also contributed to higher shoe prices at retail.
“Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices,” NRF’s vice president of supply chain and customs policy Jonathan Gold said in a statement. “A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
99 percent of the shoes sold in the United States are currently imported from primarily China, Vietnam and Indonesia. With the U.S. footwear industry bringing in 2.5 billion shoes a year, it already pays $4 billion a year in tariffs.
Shoe prices were mostly flat in September from a year ago, but the category is expected to see an overall rise by the end of 2024 for the fourth straight year, according to the latest data from the Footwear Distributors and Retailers of America (FDRA).
Shoe industry trade groups have been vocal about the adverse effects that tariffs bring to consumers. In September, a survey from FDRA found that tariffs and trade policy were top of mind for U.S. shoe executives in the third quarter.
“Our Q3 Shoe Executive Survey reflects both the optimism and the challenges facing the footwear industry,” said FDRA president and chief executive officer Matt Priest in a statement in September. “With trade policy looming large in a presidential election year and consumer behavior constantly evolving, our members are prepared to navigate these uncertainties. FDRA will continue to provide the tools and insights they need to succeed.”
