Over 200 U.S. footwear companies urge Trump to scrap proposed tariff hike (updated)

FILA Fabbrica Italiana Lapis ed Affini SpA

28/08/2019 17:10

(Adds names of big firms that signed letter, details from
letter,  trade group comment)
    WASHINGTON, Aug 28 (Reuters) - More than 200 U.S. footwear
companies on Wednesday urged U.S. President Donald Trump to
cancel proposed higher tariffs on Chinese imports that take
effect beginning next month, calling them hidden taxes that will
jack up consumer prices.
    "Imposing tariffs in September on the majority of all
footwear products from China - including nearly every type of
leather shoe - will make it impossible for hardworking American
individuals and families to escape the harm that comes from
these tax increases," the companies wrote in a letter to Trump.
    While tariffs on some Chinese imports will be delayed until
Dec. 15, the majority of footwear lines face an added 15% tariff
on Sept. 1, the letter said. That comes on top of tariffs that
already average 11% and reach 67% on some shoes, it added.
    "This added 15% tax will cost U.S. footwear consumers an
additional $4 billion every year," the letter said, citing an
estimate by the Footwear Distributors & Retailers of America
(FDRA) trade group, which spearheaded the letter.
    The letter, signed by companies including Adidas  ADSGn.DE 
and Foot Locker  FL.N , warned that the new tariffs would
exacerbate economic uncertainty and could drive up prices in
other countries that produce footwear, given limited production
capacities.
    The U.S. Trade Representative's Office (USTR) on Wednesday
reaffirmed Trump's plans to impose an additional 5% tariff on a
$300 billion list of Chinese imports starting Sept. 1 and Dec.
15. The Trump administration had previously planned to impose a
10% tariff on these imports. urn:newsml:reuters.com:*:nL2N25O0JM
    FDRA Chief Executive Matt Priest warned that the higher
tariffs would result in job losses across the industry.
    "Brands have already said tariffs will dent job growth and
shoe stores are saying it's a job killer," Priest said in a
statement. "We hope the president listens to Americans across
the country ... and stops this unnecessary trade war."
    The letter also rejected comments from U.S. officials who
say China can simply devalue its currency to cover the added
costs.
    "This is simply not true when it comes to our industry,
because import prices are almost always quoted and negotiated in
U.S. dollars not RMB (Chinese yuan)," it said. "For RMB
devaluation alone to offset the 15 percent tariff increase for
some shoes, the currency would have to drop by more than 40
percent."

 (Reporting by Andrea Shalal
Editing by Bill Berkrot)
 ((andrea.shalal@tr.com; +1 202-815-7432;))