Eighty-two footwear companies wrote a letter Monday to President Donald Trump expressing “strong concerns” over potential tariff increases on footwear as part of any remedy imposed pursuant to his administration’s ongoing “Section 301” investigation into whether China is unfairly directing foreign investors to transfer technology and/or intellectual property to Beijing.
Trump is expected to impose $60 billion worth of annual tariffs against Chinese products by Friday, after his administration started an investigation in August pursuant to Section 301 of the Trade Act of 1974, which allows the executive branch to take broad action to bring about the elimination of any harmful conduct found during the investigations.
“We support efforts to strengthen intellectual property protections around the world, and this has been one of the top priorities of our industry for many years,” the organizations wrote. “However, we reject the idea that the solution to this important issue is new hidden taxes on every American who buys and sells shoes.”
Tariffs on all consumer goods generally average 1.3 percent, but they average 11 percent for footwear, and any shoe cost increases would impact the industry’s ability to keep products competitively priced, the letter said.
The companies said they face challenges in protecting designs, patents, and trade dress, and that while they want to work with the Trump administration to address issues related to this, increasing tariffs on U.S. companies and consumers penalize those seeking relief.
The letter was also sent to U.S. Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross, and National Economic Council Director Larry Kudlow.