A coalition of 76 brands including Nike, Adidas, Skechers, and Under Armour has warned the White House that recently announced import tariffs are an “existential threat” to their businesses. In a letter penned by the Footwear Distributors and Retailers of America, the brands have claimed that many firms cannot absorb or pass on the new costs, particularly those selling to low- and middle-income consumers, CNBC has reported.
Notably, most of these brands manufacture in Vietnam which has seen its footwear industry boom in recent years. Manufacturers for Nike alone employ around half a million Vietnamese with footwear exports in 2024 amounting to US$22.9 billion. That is to say, an “existential threat” to these footwear brands may also pose an existential threat to Vietnam’s footwear industry too.
CNBC also notes that:
- The letter warns that Vietnam-origin shoes are at risk of disappearing from US shelves due to unsustainable duties.
- Orders already been paused, with industry players unable to adjust supply chains in time.
See also: What’s Next for Vietnam if Trump’s 46 Percent Tariff is Here To Stay?