World Footwear

Trade

Footwear industry import's tax bill outpaces sales growth in the US

Feb 13, 2015 United States
Footwear industry import's tax bill outpaces sales growth in the US
According to the Footwear Distributors and Retailers of America (FDRA), the footwear’s industry’s trade association, tariffs on footwear have hit another all-time high, with nearly 2.7 billion US dollars paid
The FDRA announced that in 2014, the footwear industry paid 2 671 841 761 US dollars in footwear tariffs to the US government, which represents a 6.6% increase over 2013.

Bearing in mind that 99% of all shoes sold in the US are imported, the FDRA has once again alerted to the drive up costs for consumers and business and urged the authorities to speed up the closing of the Trans-Pacific Partnership (TPP) and other trade initiatives, as according to the American Association “duties collected on footwear from TPP countries was up an astounding 24% in 2014”. 

“These tariffs are job killers, reducing our revenues and impacting our ability to expand economic opportunity. Worse, they raise prices on consumers and make us less competitive against other companies and brands around the world”, said Greg Tunney, President and CEO of RG Barry Brands and FDRA Chairman. "We need Congress to support TPA and TPP so the footwear industry and American consumers can find relief and become more globally competitive.”

“We constantly strive to design and build the very best products, all the while working to provide our consumers the best value”, said Blake W. Krueger, Chairman, CEO & President of Wolverine Worldwide. “These tariffs amount to a hidden tax.  If we can get these duties removed through TPP we can ultimately provide an even better value to our consumers, and at the same time create more jobs across the country. It is a win-win situation and I urge Congress to support the agreement.”

“It is clear from our industry that duty relief is important for job growth and economic expansion”, added FDRA President Matt Priest. “We are supportive of President Obama’s efforts to negotiate the TPP and encouraged that many leaders on Capitol Hill are pushing for Trade Promotion Authority (TPA). We call on all Members of Congress to work together and pass TPA immediately.”

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