The Footwear Distributors and Retailers of America (FDRA) says that President Trump’s upcoming plan for mutual tariffs could have an effect on the economy.
Trump will announce this new program of tariffs on April 2 at an event in the Rose Garden of the White House. It will affect trade partners around the world.
Trump says that the goal of the bilateral tariffs is to bring the US’s relatively lower tariff rates in line with those of other countries and to eliminate the non-tariff barriers that are stopping US exports.
But it’s still not clear how these taxes will be set up. Some people think the President might consider a 20% tariff on everything. The proposed taxes are likely to go into effect soon after they are announced.
The FDRA, which represents the shoe industry, indicates that similar taxes have historically caused higher prices for consumers, economic hardships, and significant disruptions in the industry—issues that could soon impact the footwear sector again. Indeed, tariffs impact footwear affordability in a direct manner that consumers are beginning to feel.
In a recent briefing, the FDRA used examples from history, like the McKinley Tariff of 1890 and the Smoot-Hawley Tariff of the 1930s, to show how raising tariffs can lead to detrimental outcomes like price increases, retaliatory actions, and broader economic problems.
The FDRA asserted that the trade war initiated by Trump in 2018 also resulted in higher prices for everyday items like shoes and clothing.
Andy Polk, senior vice president of the FDRA, says, “The effects of high tariffs and retaliations are pretty much the same no matter the time. Costs going up means buyers lose. Through history, we can see that these rules affect both businesses and regular Americans waiting in line at the store.”
According to the FDRA, tariffs have the most substantial effect on footwear; some children’s shoes have duty rates exceeding 90%. Any further tariffs could exacerbate financial strain on families, especially as prices for essential goods continue to rise. The pressure on household budgets underscores how tariffs impact footwear affordability, making it a pressing concern for many American families.
History could repeat itself; President McKinley later regretted the high tariffs he put in place. Polk said, “We urge the government to be careful not to put too much stress on businesses and consumers by taking a thoughtful and focused approach.”
The FDRA’s mission is to keep a close watch on changes and advocate for actions that help the shoe business and American consumers maintain economic stability and afford shoes. The implications of tariffs on affordability are something that needs to be addressed proactively.
Meanwhile, Matt Priest, President and CEO of the FDRA, has told the Trump administration that they need to be more cautious with tariffs and avoid raising taxes as much as they plan to.
“There is a chance that Americans will pay more but receive less in ‘shrinkflation’ if the government moves forward without a clear plan,” Priest stated. “President Trump should prioritize American businesses and consumers instead of imposing broad tax increases that do more harm than good.”
Increasing Worries Among Shoe Industry Executives
Shoe industry executives are becoming increasingly concerned. The FDRA’s “Shoe Executive Business Survey” for the first quarter of 2025 shows that industry leaders are worried about rising costs, decreasing customer demand, and ongoing tariff impacts.
The poll of footwear executives reveals a significant decline in industry confidence, with 87% expecting a deteriorating economy over the next six months. Additionally, 85% of shoe buyers anticipate a reduction in demand, and half of them foresee sales declines soon.
As trade policy uncertainty grows, making profits becomes more challenging for shoe companies:
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97% expect higher landed costs in the next six months.
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45% predict costs will rise by 11–20%, while 31% expect increases of up to 10%.
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Almost three-quarters of executives report that government policies—especially tariffs—are their main concern.
Retail data from the US government confirms these worries, showing that shoe store sales fell approximately 8% from January 2024 to January 2025. This decline represents the 21st drop in 23 months for retail footwear sales.
Matt Priest, president and CEO of the FDRA, said, “These results validate what we’re hearing across the sector: consumer confidence has dropped significantly, and demand is declining. Shoes are a necessity, but for many families, that extra pair is becoming an unnecessary luxury. We must not only assist Americans battling rising costs but also take decisive actions to mitigate these effects and support businesses that are essential to our economy.” The ongoing challenges highlight the vital need for policies that consider how tariffs impact footwear affordability in the current economic climate.
