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EU footwear industry may gain from Trump’s tariffs

Aug 5, 2025 European Union

Countries such as Portugal and Spain could benefit from Trump’s latest tariff policies, as the EU is the least penalised region, with tariffs of only 15%, which do not accumulate with historical tariffs

Following President Trump’s latest executive order introducing new customs tariffs on all products shipped to the US after the 7^th of August, figures show that the European Union is the region of origin that will be penalised the least.

Almost all countries will see their exports subject to additional tariffs of between 10% and 30%, on top of the usual tariff. However, the executive order provides a specific exception for the European Union: the 15% tariff does not accumulate with historical tariffs.

Only products with tariffs below 15% will be adjusted, with only the difference being applied. “For a European Union product with a tariff below 15%, the sum of the current tariff and the new ad valorem rate will be 15%. For products with a tariff equal to or above 15%, no additional tariff will be applied”.

For example, a man leather shoe made in Portugal and previously subject to a tariff of 8.5% will now be subject to an additional tariff of 6.5%, bringing the total tariff to 15%. Conversely, sneakers with an existing tariff of 20% will continue to be taxed at that rate, as it exceeds 15%.

However, tariffs will be applied differently to other markets. Footwear exports from some of the main producing countries, including Vietnam, Indonesia, Cambodia, Pakistan, Bangladesh and India, will be subject to additional tariffs of between 19% and 25%. In other words, the new tariffs will be added to the existing tariffs: India: 25%; Vietnam and Bangladesh: 20%; Indonesia, Cambodia and Pakistan: 19%.

Thus, a pair of shoes exported from Vietnam, which currently has a tariff of 13.3%, will incur an additional tariff of 20%, totalling 28%.

Brazil faces the most severe case, with a base tariff of 10% plus an additional penalty of 40% under the International Emergency Economic Powers Act (IEEPA), totalling a rate of 50%, which must still be added to the historical tariff.

Main Footwear Producing Countries

According to the World Footwear 2025 Yearbook (more information available HERE), China remains the industry leader, producing over half of the world’s footwear (a world share of 54.3%).

India and Vietnam have solidified their positions as the second and third largest producers (with world shares of 12.5% and 6.5% respectively), with Brazil ranking fourth and standing out as the highest-placed non-Asian country on the list (with a world share of 3.9%).

It is followed by Indonesia (world share: 2.1%), Pakistan (world share: 2.6%), Bangladesh (world share: 2.1%), Türkiye (world share: 1.9%), Cambodia (world share: 0.9%) and Mexico (world share: 0.9%).

Source and Image Credits: APICCAPS

European Union Economy International Trade Tariffs Trump tariffs