Nike And Adidas Urge Trump To End Trade War

0

Some of the world’s biggest footwear firms are urging Donald Trump to end the US trade war with China, warning of a “catastrophic” effect on consumers.

They also warn that higher levies threaten the future of some businesses.

A letter signed by 173 companies, including Nike and Adidas, says the president’s decision to raise import tariffs will affect the working class.

The US president increased levies on $200bn (£157.3bn) worth of Chinese imports into the US from 10% to 25% more than a week ago after Washington and Beijing failed to reach a deal on trade.

President Trump says that the trade deficit with China hurts the US economy.

China retaliated by announcing plans to raise levies on $60bn of US imports from 1 June.

The footwear companies that signed the letter say that while the average US tariff on footwear is 11.3%, in some cases it can reach as high as 67.5%.

“Adding a 25% tax increase on top of these tariffs would mean some working American families could pay a nearly 100% duty on their shoes,” the companies wrote.

“This is unfathomable.”

“It is time to bring this trade war to an end,” the firms urged.

Earlier this month, when he raised tariff, Mr Trump told companies that they could reduce costs by shifting production to the US.

However, the shoemakers and retailers say that: “Footwear is a very capital-intensive industry, with years of planning required to make sourcing decisions, and companies cannot simply move factories to adjust to these changes.” even though they have been moving their sourcing away from China.

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

Leave a Reply