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US footwear companies urge Trump to remove footwear from proposed tariff list

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US footwear companies urge Trump to remove footwear from proposed tariff list

U.S. footwear companies, including Nike Inc., Under Armour Inc. and Foot Locker Inc., are urging President Donald Trump to immediately remove footwear from the proposed additional tariff list on goods imported from China.

In a May 20 letter, over 170 U.S. footwear companies, brands and retailers, said the proposed additional 25% tariff on footwear would be "catastrophic" for U.S. consumers and companies.

"As an industry that faces a $3 billion duty bill every year, we can assure you that any increase in the cost of importing shoes has a direct impact on the American footwear consumer," the companies wrote.

The Footwear Distributors and Retailers of America, the footwear industry's trade association, has estimated that the proposed tariffs will add $7 billion in additional costs for customers each year, according to the letter.

"While U.S. tariffs on all consumer goods average just 1.9 percent, they average 11.3 percent for footwear and reach rates as high as 67.5 percent," the companies said in the letter, adding that a 25% tax "on top of these tariffs would mean some working American families could pay a nearly 100 percent duty on their shoes."

In May, the U.S. raised tariffs on about $200 billion of Chinese imports to 25% from 10%.

Nike and Under Armour did not immediately respond to S&P Global Market Intelligence's request for comment.