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Footwear companies urge Trump to scrap proposed tariff raise

More than 200 footwear companies appealed to U.S. President Donald Trump to scrap proposed higher tariffs on imports of shoes from China.

In an Aug. 28 letter, the companies, including NIKE Inc., Under Armour Inc., Foot Locker Inc., J. C. Penney Co. Inc. and Wolverine World Wide Inc., said although tariffs on some imports from China would be delayed until December, the majority of footwear product lines will be exposed to an added 15% tariff from Sept. 1.

On Aug. 23, Trump announced his plans to raise tariffs on $300 billion worth of Chinese goods to 15% from 10% from Sept. 1.

"This American tax is on top of already high footwear tariffs that average 11% and reach 67% on some shoes," the companies wrote.

The additional 15% duty on footwear will cost U.S. consumers an additional $4 billion a year, the companies said, citing an estimate by Footwear Distributors and Retailers of America.

The footwear companies rejected comments by the administration that China can devalue its currency to respond to higher costs. The companies said this is not applicable in the footwear industry as import prices were quoted and negotiated in U.S. dollars, not renminbi.

"This uncertainty the China trade war has brought to our industry is stifling U.S. growth and halting capital investment in jobs, infrastructure, technologies, and more competitive pricing for our customers," the companies said in the letter.