Nike, ADI And UGG Are Furious: "Because Tariffs, American Consumers Spend 48 Billion 400 Million More A Year!"

Last week, the United States threatened to impose tariffs on some US $300 billion worth of Chinese exports to the United States.

These products include almost all footwear products - sports shoes, sandals, cotton shoes, rain shoes, ski shoes and so on.

However, after a week, the domestic enterprises in the United States did not work.

According to World Wide Web, in May 20th, 173 footwear giants including Adidas, Nike, UnderArmour (Andemar), FootLocker and UGG jointly wrote to us president Trump, hoping that they could relax tariffs on shoes made in China.

It is reported that the letter was also sent to US Treasury Secretary Mnuchin, Secretary of Commerce Ross and Kudelo, director of the National Economic Commission of the White House.

The joint letter emphasized:

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Would becatastrophic for our consumers, our companies, and the American economy, the)

Americans may need to spend more than 7 billion dollars a year on shoes.

Why are so many footwear giants jointly opposed to Trump's tariff policy?

The reason is that the cost of shoes raised by tariff increases is finally borne by American consumers.

According to the Footwear Distributors and Retailers of America, the average selling price of children's shoes will rise from $10 to $15 under 25% high tariffs, running shoes will rise from $150 to $206, basketball shoes will rise from 130 to 179 dollars, boots will rise from $190 to 249 dollars, and similar prices will rise for other kinds of shoes.

Photo source: BBC report screenshot

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American Apparel & Footwear Association, hereinafter referred to as AAFA, is estimated.

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These footwear giants wrote in the letter: "we are here to represent hundreds of millions of footwear consumers and hundreds of thousands of employees demanding immediate stop tariffs and lighten our tax burden.

As an industry that pays us $3 billion a year, we can assure you (Trump) that the increase in the cost of imported shoes will have a direct impact on US consumers. The president's proposed tariff increases will ultimately require us consumers to pay the bill. Now is the time to end the trade war.

The letter also said: "the increase in footwear tariffs will have a great impact on wage earners.

Although the United States has an average tariff of only 1.9% on all consumer goods, the average tariff of footwear products reaches 11.3%, reaching a maximum of 67.5%. The Levy of 25% tariffs may mean that some wage earners in the United States need to pay equal tariffs to their shoes, which is unthinkable.

This sentiment has been responded to throughout the industry.

"We can't afford these costs," said Epersen, President of global operations of footwear manufacturer Wolverine. The company also signed the letter. "The only way is to pass on to consumers."

The companies that sign the joint letter are different in their dependence on Chinese factories.

Nike made 26% of its total clothing and footwear products in China in fiscal year 2018. Skechers (Cage) produced 65% of its products in China, while about 18% of products are produced in China, but not all of them are exported to the United States.

At present, the annual consumption of shoe products in the United States is over 2 billion.

According to FRDA data, in 2016, the US spent an average of 7.3 pairs of imported shoes per person.

According to the Department of textiles and clothing of the US Department of Commerce, the total import volume of footwear products in the United States increased by 9.1% to US $26 billion 220 million in 2018, of which the import of footwear products from China amounted to US $13 billion 890 million, accounting for 53%.

Vietnam, which ranks second, accounts for 6 billion 160 million, accounting for 23.5%, less than half of China's.

According to BBC, Trump often mentioned that if the company manufactured products in the United States, or moved the production lines to Vietnam, Indonesia and other countries that were not subject to tariffs, the tariff would be avoided.

Helfin Bein, chief executive of AAFA, said: "this is not an easy task. Although some manufacturers are doing so, technology and technology of workers are not so easy to pfer.

AndyPolk, a spokesman for FRDA, also said that factories in the US would not manufacture shoes that could be imported from China. Even if they did, American made products would be more expensive than imported from China.

Tariffs will seriously affect the lives of Americans.

In addition to shoes, household electrical appliances, frozen fruits and vegetables imported from the United States will be affected.

According to BBC reports, the average selling price of washing machines sold in the United States has increased by 12%, and the prices of related products such as driers have increased after the tariffs between China and the United States have been added to each other by University of Chicago.

Previous studies by Trade Partnership Worldwide also show that Sino US trade friction will increase the average annual expenditure of US households by 2300 US dollars.

According to the Census Bureau, in 2017, the median annual income of a standard four family in the United States was US $61372.

In fact, the footwear giants mentioned above are not the first group to shout "Trump". In May 16th, according to the US Cbs Broadcasting Inc, the United States insisted on imposing tariffs on China's exports to the United States, resulting in a large increase in the prices of daily necessities in the United States, and WAL-MART, Messi and other business giants said.

Last March, 25 retail giants including WAL-MART wrote a letter to us president Trump, calling on the US government not to impose tariffs on products imported from China so as not to hurt us consumers' interests.

According to overseas network reports, Star Tribune, the largest newspaper in Minnesota, quoted Goldman Sachs's report as saying that many Americans have already felt that the price of clothing, electronics, medical equipment, household appliances, furniture, bedding, flooring and truck parts has risen far beyond the inflation rate.

Tim Kehoe, a trade expert at University of Minnesota, said that if Trump continues to implement the tax plan, the prices of these commodities will continue to rise. "Americans will pay more for tariffs."

Minnesota business leaders also lamented, "we will suffer heavy hammering again."

According to reports, Minnesota imported about 12 billion 400 million U.S. dollars of Chinese components and products in 2018, more than those imported from other countries.

Minnesota business cooperation organization, which brings together CEO, a large state enterprise, believes that the financial consequences of tariffs are terrible for their companies and for the vast number of American consumers.

Executive director Charlie Weaver (Charlie Weaver) even shouted to Trump, "this is not like the president's habit of New York real estate pactions like that, can casually roar and bluff."