Shoe retailers push back against Trump’s China tariffs

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>>>WE HAVE A 20% TARIFF ALREADY, ANOTHER 25% WOULD BE A 45% TARIFF ON A $130 RUNNING SHOE. IT’S NOT AFFORDABLE. WE HAD TO MAKE A DECISION IN JANUARY. WE ARE DE-EMPHASIZING CHINA. WE ARE STILL GOING TO HAVE AN R & D CENTER THERE AND SOME SMALL PRODUCTION CAPABILITY BUT THE VOLUME IS GOING TO VIETNAM. WE WILL ADD A THIRD COUNTRY WE WILL NAME NEXT YEAR. LIZ: DID YOU DO THAT MATH? THE 20% TARIFF ON FOOTWEAR THAT BROOKS RUNNING CEO JIM WEBER REFERRED TO DATES BACK TO THOSE TWO GUYS ON YOUR SCREEN AND 1930. THOSE TWO ARE TWO LAWMAKERS BY THE NAME OF REED SMOOT AND WILLIS HAWLEY. THOSE TWO TOGETHER RAISED TARIFFS ON 20 OR WAS IT 30? 30,000 IMPORTED GOODS COMING INTO THE U.S., AND MANY SAY THAT EXTENDED AND EXACERBATED THE GREAT DEPRESSION OF 1929. THOSE TARIFFS, STILL IN PLACE FOR THE FOOTWEAR INDUSTRY. NOW SHOE MAKERS, FOOTWEAR MAKERS AND SELLERS ARE PUTTING THEIR FOOT DOWN URGING PRESIDENT TRUMP TO REMOVE FOOTWEAR PRODUCTS FROM HIS LATEST TRANCHE OF TARIFFS WHICH WOULD LEAD TO AN ADDITIONAL 25% IN DUTIES IN SHOES AND SUNDRY. A RETAIL ANALYST JOINS US RIGHT NOW, A WOMAN WHO LOVES A GREAT PAIR OF SHOES, NO DOUBT.>>NO DOUBT. ESPECIALLY WHEN IT COMES TO RUNNING SHOES. LIZ: RUNNING SHOES, BUT YOU SEE WHAT THEY ARE UP AGAINST. THEY ALREADY HAD FOR MANY YEARS 20% TARIFFS AND NOW, IF THEY GET THE 25% SLAPPED ON, 45%? UNTENABLE.>>WE ARE TALKING ABOUT A PAIR OF RUNNING SHOES THAT MAYBE COSTS $159 WILL ESSENTIALLY GO UP TO SOMEWHERE AROUND $195, PUSHING $200. RIGHT NOW, WITH THESE IMPENDING TARIFFS, THIS MIGHT COST A FAMILY OF FOUR ABOUT $500 A YEAR, IF IT GOES UP IT WOULD GO INTO THE THOUSANDS. LIZ: KIDS’ FEET GROW VERY QUICKLY. SO ONE MINUTE YOU’VE GOT YOUR KIDS IN A 7, NEXT THING YOU KNOW IT’S WAIT A MINUTE, 8 1/2. HERE’S WHAT, JUST SO EVERYBODY KNOWS, WHAT THE FOOTWEAR GIANTS HAVE DONE. THEY PUT THEIR NAMES ON A LETTER AND THEY HAVE SENT IT TO PRESIDENT TRUMP. WE CAN SHOW YOU SOME OF THIS LETTER. IT IS VERY STRONGLY WORDED. THE LETTER TO THE PRESIDENT ON THE IMPACT OF A TARIFF HIKE ON FOOTWEAR. HERE’S WHAT THEY SAY. THE PROPOSED ADDITIONAL TARIFF OF 25% ON FOOTWEAR WOULD BE CATASTROPHIC FOR OUR CONSUMERS, OUR COMPANIES AND THE AMERICAN ECONOMY AS A WHOLE. AND FOLKS, I NEED YOU TO LISTEN TO THIS PART. THERE SHOULD BE NO MISUNDERSTANDING, IT IS U.S. CONSUMERS WHO PAY FOR TARIFFS ON PRODUCTS THAT ARE IMPORTED. IT IS AN UNAVOIDABLE FACT.>>SO WHAT IS ALSO VERY INTERESTING ABOUT THIS, I THINK PEOPLE ARE SAYING IT’S VERY EASY FOR THESE COMPANIES TO LEAVE CHINA TO RELOCATE THEIR MANUFACTURING, THERE ARE COUNTRIES LIKE VIETNAM CLOSE BY OR EVEN MANUFACTURING IN AFRICA. IT’S VERY DIFFICULT TO UP AND MOVE YOUR MANUFACTURING THAT QUICKLY. IN SOME CASES IT’S TAKEN YEARS. THERE ARE COMPANIES LIKE UNDER ARMOUR AND NIKE THAT HAVE BEEN IN THE PROCESS OF TRYING TO MOVE THAT MANUFACTURING BUT THIS TAKES A VERY LONG TIME. SO THIS ISN’T SOMETHING THAT CAN HAPPEN IMMEDIATELY SO THAT THESE COMPANIES LIKE THESE FOOTWEAR MANUFACTURERS CAN AVOID THE TARIFFS AND OSTENSIBLY PASS THAT ALONG TO THE CONSUMER. IT’S GOING TO OVERLAP AND THE CONSUMER IS GOING TO END UP PAYING FOR THAT. LIZ: THE WHO CONSUMER, CHINESE OR U.S.?>>THE U.S. CONSUMER. YES. THEY ARE CORRECT. THE CONSUMER PAYS FOR THE TARIFFS BUT IT COMES IN PRICE HIKES. THAT GETS TRANSLATED INTO WHAT WE END UP PAYING FOR THOSE SHOES, FOR THOSE ACCESSORIES THAT ARE GOING TO GET TARIFFED. LIZ: IT’S AMAZING BECAUSE JIM WEBER OF BROOKS RUNNING SAW THE WRITING ON THE WALL AND SAID WE COULD NOT WAIT AROUND. WE COULD NOT WAIT AROUND TO SEE HOW THIS TRADE WAR WOULD PLAY. THEY HAD TO TAKE A HUGE INVESTMENT. THEY ARE LUCKY BERKSHIRE HATHAWAY IS THEIR PARENT. THEY HAD THE CASH FLOW AND THEY HAD TO MOVE. IT TOOK MONTHS TO VIETNAM.>>RIGHT. HE HAD THE ABILITY TO SEE AROUND CORNERS IN THAT INSTANCE. WHAT ABOUT THE COMPANIES THAT ARE JUST, YOU KNOW, MAYBE STARTING OUT, THERE ARE COMPANIES THAT ARE SMALLER THAT HAVE MANUFACTURING IN CHINA, THAT CAN’T JUST GET UP AND MOVE THAT QUICKLY. LIZ: THEY EMPLOY PEOPLE HERE IN THE U.S.>>THOUSANDS OF JOBS WE ARE TALKING ABOUT. LIZ: OKAY. ALL RIGHT. THANK YOU VERY MUCH. SO THAT WAS YOUR LESSON OF THE DAY. SMOOT-HAWLEY. THOSE TWO GUYS, 30,000 DIFFERENT PRODUCTS WITH TARIFFS SLAPPED ON

100 COMMENTS

  1. Tiny violins playing – what the hell is the profit margin on those shoes that they are using cheap almost slave Chinese labor to produce while not providing any real US jobs – I hope it impacts their bottom line in a major way until they become more American centric in their approach

  2. Even though the stocks widget posted shows their stock prices all going up! Isn't that odd? They're not concerned about the impact on consumers. They're only concerned about their shareholders. When they left America and cut their costs of production and labor by 90%, they never lowered the prices of their shoes. They want their cake and want to eat it too. Party's over, shoe barons. Go f*ck yourselves.

  3. BS , companies will eat 50% of the tariffs. Brooks are very expensive shoes anyway. Additional 20% to the last pair of running shoes I bought would make their price 70.00. I consider that reasonable.

  4. China must be defeated here's why-
    Ultra China

    https://www.youtube.com/watch?v=rgKLYjiC5MU

    An afternoon walk along the Hai He, Tianjin

    https://www.youtube.com/watch?v=MoMvvaKORHI&t=316s

    Street Style Fashion in China 2018 – Part 2

    https://www.youtube.com/watch?v=0xEkRirFD98&index=3

    Alibaba Fan Tours Company Headquarters in Hangzhou, China

    https://www.youtube.com/watch?v=fFZloJ7cVQM&t=61s

    A rare look inside Chinese smartphone giant, Huawei's headquarters | CNBC Reports

    https://www.youtube.com/watch?v=n_nJWCtivPc&t=18s

    This is what Chinese people are watching online

    https://www.youtube.com/watch?v=8QLBklQiln4&t=7s

    China Fashion Show 2018 (Noty Girl)

    https://www.youtube.com/watch?v=5W7KVXlAbNA&t=0s

    How to cook fish in a traditional Chinese way? 收取人间一片白,焖得一罐鱼儿香——古法焖雪水鱼

    https://www.youtube.com/watch?v=gbtDj3uUZfs&t=5s

    China Travel Tour – Shanghai – walking Lujiazui Financial Area Pudong weekday from 5-9 pm HD 2017

    https://www.youtube.com/watch?v=L9XUUJvgNcI&t=1s

    China leads in innovations for mobile retail

    https://www.youtube.com/watch?v=ZmeRJ8Zt0Gg&t=0s

    CHINA IS BEYOND CASHLESS

    https://www.youtube.com/watch?v=gysKE3POUv0&t=150s

    Mamahuhu's Guide To Shanghai

    https://www.youtube.com/watch?v=3EGzvH6Y1SY&t=727s

    RAP of China, the biggest thing on Chinese TV

    https://www.youtube.com/watch?v=tTzYCP_QWdA

    I missed China, so….

    https://www.youtube.com/watch?v=bEL28bWAVZQ&t=0s

    CITY OF THE FUTURE?! 🇨🇳🌸 MUST Visit in Asia | Guangzhou China Canton Tower Tour, Travel Vlog Ep08

    https://www.youtube.com/watch?v=85UT63NR9Eo

  5. I guess the first 20% tariff(in 1930) was not enough to keep companies from taking the jobs to other nations ….Make the shoes here they will fit better and won't come unglued in 6 months…

  6. Bring their manufacturers back to the US or bring them to other countries, and not China! Stop making China RICH! Making China rich puts security of our country at risk as we all know China spend money to expand their military! China already invaded South China Sea by putting military base on many islands that don’t even belong to them. They also want to finish their one belt and road project. STOP MAKING CHINA RICH!

  7. It takes years to move production to other countries since when? Spec out your shoes with other shoe makers in Thailand, etc.

  8. We're from the Philippines, and we're happy with these developments in the US. Our shoe industry has been decimated because of Chinalization and the predatory nature of the so-called "global trade". Who can compete with US$ 5-10 shoes made in China in slave like conditions? People won't die if they can't buy Brooks for a few months. These people are just being so greedy!

  9. WE NEED TO STOP DEPENDING ON CHINA FOR MERCHANDISE AND MAKE OUR OWN WE ARE PUTTING OUR FOOT DOWN ON CHINA STOP FEEKING SCARING THE PEOPLE ENOUGH IS ENOUGH TRUMP KNOWS WHAT HE IS DOING WHY DO KIDS HAVE TO HAVE THESE EXPENSIVE BRANDS THEY DO GROWOUT OF FAST MAKE A DIFFERENCE AND BUY SNEAKERS MADE HERE END OF STORY WE CANT KEEP BUYING FROM CHINA ITS GOING TO HURT THEM IF WE STOP NOW NO MORE SALES FOR CHINA

  10. Buy American??

    Get it trough your thick skull, the companies are NOT coming back to the US!!! They are going to relocate to Vietnam and India.
    Instead of the sticker saying "Made In China" it will say, Made In Vietnam. That is the only difference.

    "Simple solution, make them in America" but they are not going to. Stop dreaming. Trump HIMSELF said that most companies are going to relocate to Vietnam and other places.

  11. a perfect example of anywhere but not america, even its not made in china
    keep dreaming of "made in america"
    told by show makers

  12. FOX apparently is adding 50% tariff to to the propoganda machine..really disappointing ladies.. How about we just buy American and bring our industry back and /or build factories in other countries as DJT is stimulating by his actions? MAGA

  13. Shoes??? China was shipping unlimited goods for free to the US because Bill Clinton is a traitorous thief, and you're talking about shoes??

  14. Americans need to just buy one pair of Nike Air Jordan than buying every week when a limited edition comes out.

  15. President Trump should not listen to these greedy corporate CEOs. I don't buy my children $150 shoes. But failing to stop China while we still have the leverage to do so peacefully would be catastrophic for the entire world. We must stand up now.

  16. Sorry to disappoint you Americans. Your jobs are still not coming back home just because you raise tariffs. Labor is still cheaper overseas. Consumer prices go up but minimum wage stays low. Have fun paying higher consumer prices because of tariffs and more tax money for your government. Americans have became the laughing stocks of the world.

  17. Families that pay $150 for a pair of premium sneakers have money to burn. There are plenty of shoes on the market for less than $50. American companies are leaving China and going to Viet Nam, India, etc. China will lose, not American families.
    All of this is nothing but fear mongering.

  18. the government looks after the national interest not the interest of greedy companies. go move ur production to another neutral country and quit whining !

  19. Who in the hell is buying $150 for the kids to go to school just to ruin them anyway buy cheaper shoes and when they turn 18 they can buy all the $150 shoes they want!! Maybe if they Jack them up to $200 a shoe you won't see so many idiots walking around with expensive shoes and clothes on instead of buying a car🤣😆

  20. Dont buy Chinese shoes. 100 dollars for chinese made shoes. The mark ups are insane. The quality is garbage and your paying for names not good products. Buy american and its allies.

  21. American middle class > Asian middle class.
    America built the Asian middle class while letting ours crumble.

  22. I wear Red wing boots and New balance sneakers. Remember when you Buy Cheap you Buy often. No better pair of work boots on earth than Red Wings and their customer service is awesome.

  23. Oh no! They're now running into problems selling $150 shoes made in sweatshops for quarters! Ouch, my conscience!

  24. They buy from China at $5/- and sell it to Americans for S150/- . They can change their supplier from China to Vietnam as an alternative since they also make shoes and do not have any tariffs.

  25. TRUMP IS TRYING TO FORCE AMERICAN COMPANIES OPERATING IN CHINA TO RETURN TO AMERICA.
    WHO GIVES A F*CK WHAT SHOE COMPANIES WANT??? THESE SHOES COMPANIES ARE STEALING MONEY FROM US CONSUMERS. A $150 pair of shoes didn't cost the company that much to make them..

  26. NIKE SELLS A PAIR OF KOREAN MADE SHOES IN THE USA FOR A 60% PROFIT, EVEN THOUGH NIKE MAKES SOME OF THE PARTS IN THE USA. The worst part of that is they are terrible for your feet, because they break in the wrong spot, causing foot pain. WHY CAN'T NIKE MAKE SHOES IN THE USA AND AVOID THOSE TARIFFS??? IT IS A POLITICAL PLOY SUPPORTED BY MSM HACKS. SINCE WHEN IS OKAY FOR MSM TO SIDE WITH OUR COMMUNIST ENEMIES OVER A DULY ELECTED POTUS TRADE NEGOTIATIONS??

    I WONDER, HOW MUCH "BETTER" AMERICA COULD DO, IF THE USA WASN'T 22 TRILLION DOLLARS IN THE RED FROM BAD TRADE DEALS & US COMPANIES SEEKING LOWER LABOR COSTS, CHEATING USA WORKING FAMILIES OUT OF A STEADY JOB, WITH GOOD BENEFITS???

  27. It's american shoe and sneaker company raising the prices of shoes. Nike and the other shoe companies are raising the prices. $150 for a pair of sneakers. Play sports in them see how long they last.!

  28. For each $100 you spent on the Made in China products, $55 are the material + transportation cost. About $35 are the
    US importers profit and $8 – 10 are China factories profit. For the extra 25% Tariffs, you will have to pay approx. US$20 extra.
    Try to buy more Made in US products in this case.

  29. FvKK this woman and her stilettos. AND You lost me at $130 for a running shoe that costs $5 to make, $10 to ship, $20 to warehouse, $10 to keep in stock. $45 … charge $80. GFY! RETAIL CONSUMERISM … builds … NOTHING! (Except a thirst for "more sh!t!!!")

  30. Yes, this goes back to Smoot-Hawley … and it goes back to a Depression made GREAT by FDR who, near as I can tell, maintained many of Hoover's policies (Schlaes). FDR kept money supply low. DEFLATIONARY DEPRESSION. AND … before I forget. JOHN DINGLE'S WIDOW … is in the House seat that JOHN DINGLE'S FATHER won in 1933. STOP PISSING DOWN MY NECK and telling me it's "yellow rain".

  31. Don't worry, Shoemakers. Trump administration has endless financial aid to help you as he promised to do for farmers. LOL!

  32. Some of those shoe companies had some factories in other S.E.A countries. Companies should pay their fair share. Either Do price increase offseting the tariff (paid by consumers) but risking their marketshare as consumer opting for other cheaper brands(made by vietnam) or pack some of their manufacturing (not all) to vietnam and sell it to the US avoiding tariff, yes it will cost them setting up the factory. But they do hire great people good in math. Crunch the numbers and see which is cost effective to either to face the tariff headon or invest in Vietnam or Philippines and building a factory.

  33. Build those plants in Guatemala and El Salvador. That should keep a lot of illegals out of America. Let's do business in this hemisphere.

  34. NO – The Consumer HAS ALL THE POWER …. the power of the purse.
    The price is ONLY what we're willing to pay.
    Shoe sales MUST come down to our acceptable cost, it's not the other way around.
    geesh ….. NO ONE ever even mentions OUR power. Dolts.

  35. WHAT? My mother raised six kids on shoefactory wages. the whole town worked there. Tennis shoes retail for as little as two dollars retail. America cannot make a goddam pair of shoes anymore?????

  36. Only 15% of Trump products are made in America. Donald Trump's line of clothing is made in China. Some is also from Mexico. Ivanka Trump's clothing and accessories brand relies exclusively on factories in Bangladesh, Indonesia and China.

  37. This is Business News or an Endorsement to Become Chinese (W.T.F) An Informercial on how to be most Unamerican … Could it even be humanly fathomable that the $150 Shoe "Made in China" needs a Defense ?? Why Not Pander to the USA Public that people will no longer be able to afford to pay their Limo Drivers … ?? ~ Just a Perfect example of the USA MEDIA Thinking ahead 48 hours While China has a 10 Year Plan https://www.youtube.com/watch?v=UiRAW66wdV0&fbclid=IwAR34iZjD0FCdyx6Qid6c6DBU59Xx6-ugLJGZXBP_qZSy-YnuSYBwGOPZASs

  38. There is a 150 billion to 500 billion difference with China, the past presidents have allows China to get away with it but no more we have a businessman in there that knows what he's doing China will have no choice but to even the game. We need to look at the big picture time will tell.

  39. President Nixon put a cap on how many pairs of shoes could be imported, in order to SAVE our domestic made shoes. That is one of the MANY steps he took for the working class. They 'framed' him and took down not only our shoe I dusty but, leather, textiles, Sears, ALL Americsn made products!

  40. so these idiots would rather let China steal tech, tax US goods and cheat all companies working there by making them give away their operational secrets – so they can save money on shoes (which is making far too much profit for the company already – lower the price you greedy scrooge jerks, or screw off). Get real. No trade deal. Buy from Vietnam and get factories in Mexico – maybe a reason to keep them in their own country. Avoid doing business with countries that have no ethics or honesty. Help countries that appreciate the business and won't try to take over the world.

  41. What don’t we make here. It seems tooth picks, dental floss, airport souvenirs, toilet paper, yes TP, are made in China. Why cannot we make that stuff here? It’s all machine made.

  42. I will go barefoot and support our President for as long as it takes. Boo boo Jordan will have to make less millions.

  43. Hahaha! So funny, you don't need all those shoes, why not make good quality, leather shoes in the good old USA? 🙂

  44. Come on, the cost of making shoes is cheap, for instance, the pair of sneakers is only about $10/pair. These importers are way too greedy. I was a garment buyer myself, our company at least have to have 67% profit for every overseas order that I place. All the importers have a good profit. Now is the time to be patriotic.

  45. Don't buy any shoes from China_ fake and real bad…you can buy any other name bester cheaper China Shoes. we support 1000% Pre TRUMP_ whatever you did

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