The average American buys new shoes every 100 days. However, since the implementation of 301 duties, retail footwear prices have risen sharply, reaching some of the fastest annual increases in decades. Footwear is an essential good. As the leading voice for the footwear industry in the United States, we have seen this situation go from unsustainable to untenable.
Today, we call on the Biden Administration to eliminate these tariffs by executive order for the sake of working-class families across the country.
Just last month, retail shoe prices surged year over year, marking the most significant rise in 16 months. This uptick can be directly attributed to the higher duties imposed on American companies, which are then passed on to American consumers.
The Biden Administration has several tools at its disposal, but only the removal of 301 duties on shoes would directly and meaningfully reduce retail prices in the near term. Other approaches, such as monetary policy changes or new task forces, cannot match the immediate impact of eliminating these duties.
Footwear duties stand out as particularly regressive. Shoe imports face an average duty rate of 12%, a striking figure compared to the average 2% duty rate on other imported goods. Working-class families face disproportionate financial strain, as tariffs on children's shoes and lower-value footwear can reach as high as 70% in some cases.
The detrimental impact of these tariffs is most evident in children's footwear, which families purchase four times a year for each child on average. For certain children's casual shoes and slippers, duty rates have doubled due to the added 7.5% 301 tariff. Plastic sandals, wool slippers, and infant crib shoes have seen duty rates more than triple. This has led to record price spikes, further exacerbating the strain on families' wallets as inflation remains high.
This isn't about geopolitics or leveraging shoes as a bargaining chip. The reality is that these tariffs harm Americans more than they provide any strategic advantage. Treasury Secretary Janet Yellen has previously acknowledged that removing footwear tariffs would offer meaningful price relief to consumers. Thanks to the intensely competitive shoe market, we are confident that ending these tariffs would immediately translate to real savings in families’ pockets.
This is a matter of straightforward economics – and good politics. By removing 301 footwear duties, the Administration can deliver immediate relief to American families and directly lower shoe prices. Former President Trump has suggested adding even more tariffs to American pocketbooks. President Biden has an opportunity to show Americans he hears their inflation concerns and strike a strong economic contrast with his challenger. This decision requires no extensive reviews or additional policy measures—only the stroke of his pen.
Eliminating 301 tariffs on footwear will alleviate a significant financial burden on American families and provide essential relief from the rising cost of living. We urge President Biden to heed our call.
Matt Priest, President & CEO, Footwear Distributors & Retailers of America (FDRA).
Read Full Article »