Trump is set to unveil the new reciprocal tariff plan on global trade partners on 2 April at an upcoming White House event in the Rose Garden.
The proposal for reciprocal tariffs is intended to align the relatively lower tariff rates of the US with those imposed by other nations, as well as to address their non-tariff measures that impede US exports, as explained by Trump.
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However, details regarding the structure of these tariffs remained uncertain amidst speculation that the President might be contemplating a 20% blanket tariff. These newly proposed tariffs are slated to be implemented promptly following their announcement.
FDRA, the trade body representing the footwear sector, has indicated that historical evidence suggests such tariffs typically lead to increased costs for consumers, economic hardship, and significant industry disruptions, a situation the footwear sector may soon confront again.
A recent briefing by the FDRA draws on historical instances, such as the 1890 McKinley Tariff and the Smoot-Hawley Tariff of the 1930s, to illustrate the adverse effects of tariff increases, including price surges, retaliatory trade measures, and economic recessions.
The 2018 trade conflict initiated by the Trump administration also resulted in heightened prices for common items like apparel and shoes, the group noted.
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By GlobalDataFDRA senior vice president Andy Polk said: “Regardless of the era, the consequences of high tariffs and retaliations remain largely the same. When costs rise, consumers lose. History tells us that these policies don’t just impact businesses—they hit American families at the checkout line.”
As per FDRA, footwear is among the consumer goods most burdened by tariffs, with some children’s shoes facing duty rates above 90%.
Any further tariffs pose a risk of exacerbating financial strain on households, especially as prices for necessities continue to escalate.
“President McKinley later regretted his high-tariff policies, and history may repeat itself. We urge the administration to take a targeted, thoughtful approach that avoids placing unnecessary burdens on consumers and businesses,” Polk added.
The FDRA vows to maintain vigilant oversight of developments and advocate for strategies that support affordability, and economic resilience within the footwear sector and for American consumers.
Meanwhile, FDRA president and CEO Matt Priest called on the Trump administration to adopt a nuanced stance on tariffs and cautions against what could become the largest tax increase in recent memory.
“If the administration moves forward without a clear, measured process, we risk another wave of ‘shrinkflation’—where Americans pay more but get less. We urge President Trump to prioritise American consumers and businesses, not impose blanket tax increases that do more harm than good,” Priest stated.
Confidence sinks among footwear sector execs
The FDRA has also disclosed findings from its first quarter 2025 ‘Shoe Executive Business Survey’ which reflect growing apprehension among industry leaders concerning escalating costs, diminishing consumer demand, and ongoing tariff impacts.
According to the survey conducted among footwear executives, there is a notable downturn in industry confidence with 87% predicting a weaker economy in the next six months. Furthermore, 85% expect decreased demand from shoe shoppers while half project sales declines in the near future.
As trade policy uncertainty intensifies, footwear companies are experiencing increasing financial burdens:
• 97% predict higher landed costs over six months.
• 31% anticipate cost increases up to 10%, while 45% expect rises between 11–20%.
• Nearly three-quarters of executives identify governmental intervention—primarily tariffs—as their principal business worry.
Retail data from the US government corroborates these concerns with January 2025 shoe store sales dropping almost 8% compared to last year.
This downturn represents the 21st drop in 23 months for footwear retail sales.
FDRA President and CEO Matt Priest commented, “These results confirm what we’re hearing across the industry—consumer confidence has weakened significantly, and demand is slipping. Footwear is a necessity, but for many families, that extra pair of shoes is becoming a luxury they can’t justify. We must take surgical actions to ease these impacts, not only to help American families struggling with rising costs but also to support businesses that are vital to our economy.”
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