Trump’s proposed contentious tariffs will raise costs in almost every industry in the United States. Buyers of sporting goods and trainers, on the other hand, will face very high prices as a result of hefty tariffs. The tariffs will have a significant impact on the footwear sector, as 99% of trainers sold in the United States are imported from Asia, with Vietnam being the leading source, followed by China, Indonesia, and Cambodia.
Producers in these countries have established enormous, sophisticated supply chains that allow them to reduce prices while increasing size, which is why consumers all over the world may buy affordable footwear while the corporations selling the shoes profit.
Trump claims that his strong tariffs are required to bring manufacturing back to the US and create more jobs. However, regardless of tariffs, Asian cost advantages are so large that shifting production elsewhere, particularly to the United States, makes little economic sense.
Chinese Manufacturing Dependence
Nike and Adidas, among other footwear titans, rely heavily on Asian countries for manufacture. Nike manufactures 50% of their footwear in Vietnam and 22% in China, whilst Adidas produces 39% in Vietnam and 20% in China. Because of their geographic concentration, the two corporations are especially exposed to changes in trade rules and tariffs.
After Trump announces his ‘Liberation Day’ tariffs on April 2, experts predict that imported trainers will face a new consumption tax of up to 42%. That could change now that Trump has suspended reciprocal duties, which could affect Vietnam, Indonesia, and Cambodia. At the same time, the President of the United States has increased the duty on Chinese goods to 145%.
Whatever the final amount, Trump’s proposed tariffs on Asian imports will result in large increases in production costs for sportswear giants such as Nike and Adidas, ultimately affecting consumers as shoes prices rise.
Preparing for the changes
The market reacted quickly to the increased levies, with stock prices for many brands plummeting dramatically.
Companies such as Nike are testing innovative tactics to reduce the effects of the new measures. These include expanding manufacturing operations to countries that are not subject to high tariffs, renegotiating contracts with suppliers, and partially absorbing increased production expenses to mitigate their impact on purchasers.
Working with overseas manufacturing has kept labour costs low for U.S. corporations, but if the new tariffs are allowed to stand, they will eventually reach consumers.
Can the American garment industry be revived?
According to industry experts, rebuilding the American clothing industry would be extremely expensive and would take years if at all possible. According to the Bureau of Labour Statistics, the number of people employed in apparel manufacturing in the United States increased from 139,000 in 2015 to 85,000 in 2025.
In addition to a trained and willing workforce, the United States lacks domestic supplies for the more than 70 materials required to manufacture a normal shoe, according to the Footwear Distributors & Retailers of America. Shoe producers would need to locate or establish factories to manufacture components such as cotton laces, eyelets, and textile uppers on a large scale. According to the organisation, many of these resources were never available in the United States.
Who wins the trade war?
The tariff wars have benefited retailers with significant negotiating power with their suppliers, a strong brand name, and limited sourcing in Asia. Companies with limited negotiating power, limited pricing power, and a high reliance on Asia, on the other hand, will face greater challenges.
According to industry experts, Trump’s new tariffs will essentially be a consumer sales tax, expanding the gap between America’s wealthiest individuals and those in the middle and lower income brackets.
