Footwear brands navigate uncertainty after latest tariffs flip-flop

"It's going to be an ongoing cycle that, unfortunately, we felt was a little bit behind us. Now, we're going to have to monitor [the situation] and think about what this means for our business for the long term. - Logan Bird, CEO of Mephisto USA, describing the renewed tariff challenges facing footwear companies that had already implemented price increases and manufacturing adjustments."

"Some 99% of footwear sold in the U.S. today is imported, according to the Footwear Distributors and Retailers of America, a trade and business association representing more than 500 U.S. companies. Stuck with mounting costs from tariffs, brands like Nike, Pashion and Crocs spent the last year raising prices, rerouting manufacturing or putting off product launches."

The footwear industry confronts significant tariff volatility following conflicting policy developments. The Supreme Court ruled Trump's previous tariffs unconstitutional, but within hours, new across-the-board tariffs of 10% were announced under Section 122 of the Trade Act of 1974, with plans to increase to 15%. Since 99% of U.S. footwear is imported, primarily from Indonesia and China, brands like Nike, Crocs, and Mephisto face mounting costs. Companies have responded by raising prices, rerouting manufacturing, and delaying product launches. The rapid policy shifts create ongoing uncertainty for long-term business planning, with some brands previously projecting billions in incremental costs from tariffs.

Read at Digiday