U.S. shoe importers are on course to pay an extra $2 billion in tariffs this year, according to the Footwear Distributors and Retailers of America (FDRA), as a raft of trade measures imposed in 2025 reshapes sourcing strategies, squeezes profit margins and threatens to drive up consumer prices.
Key Numbers
- $2 billion: Extra tariff costs U.S. shoe importers will pay in 2025 (FDRA)
- 54%: Tariff rate on footwear from China
- 46%: Tariff rate on Vietnamese shoes
- 49%: Tariff rate on Cambodian shoes
- 35%: Tariff rate on Bangladeshi and Serbian shoes
- 32%: Tariff rate on Indonesian shoes
Impact by Category
- Children’s shoes: Already face up to 60% duties → further hit by new tariffs
- Basic/low-cost shoes: Margins squeezed, prices expected to rise
- Athletic & branded footwear: Brands forced to absorb costs or raise retail prices
Tariffs Bite into a Global Supply Chain
The United States has long relied on imports from Asia to stock its shelves with athletic shoes, leather boots and children’s footwear. But the new round of tariffs announced this year has significantly altered the cost structure. Vietnam, one of the country’s largest suppliers, now faces duties of roughly 46% on many footwear categories, while Chinese exports attract levies as high as 54%. Cambodia, another key source of low-cost shoes, is being hit with rates near 49%, while Bangladesh and Serbia are subject to tariffs of about 35%. Even Indonesia, which negotiated some relief, still faces duties of around 32% on some products.
These hikes come on top of already high base tariffs. Children’s footwear, for example, often carried duties of 40% to 60% depending on materials before the new measures. The additional levies mean that products at the lower end of the price spectrum—where margins are razor-thin—are particularly vulnerable. FDRA has warned that this tariff structure risks forcing many companies to raise prices on everyday footwear staples.
Also Read: Global Footwear Exports Rise in 2024, China’s Share Slips Further
Industry Reactions and Consumer Costs
Importers say the tariffs are eroding profitability across the board. Large brands with diversified sourcing may spread out the impact, but smaller firms without scale or leverage face steeper challenges. Many companies had previously front-loaded shipments to avoid tariff hikes, but with inventories now depleted, new consignments are subject to the full duty rates.
Consumers are likely to bear part of the burden. Industry executives expect retail prices for basics, from school shoes to entry-level sneakers, to edge higher in the coming months. More expensive leather and athletic footwear will also feel pressure, though companies may absorb some of the increases to protect brand positioning. The FDRA has been lobbying Washington for relief, including exemptions, simplified tariff classifications, and greater use of trade preference programs.
Strategic Shifts in Sourcing
The new tariffs are accelerating a trend already under way: diversification of supply chains. Some U.S. brands are scaling back orders from China and Vietnam and exploring alternatives in Indonesia, the Philippines and Latin America, where duties are lower or under negotiation. Others are looking at redesigning products to fit into lower-duty classifications, or even considering reshoring a small portion of production.
Still, the scope of the tariff increases makes wholesale shifts difficult. Footwear manufacturing requires complex infrastructure and skilled labor, and countries newly targeted by U.S. tariffs—such as Cambodia and Bangladesh—had previously positioned themselves as lower-cost alternatives to China. Now, even those hubs are losing competitiveness.
A Growing Policy Flashpoint
The $2 billion tariff bill underscores how the footwear sector has become a focal point in U.S. trade policy. Proponents argue that duties are necessary to rebalance trade relationships and encourage domestic production, while critics counter that the measures act as a hidden tax on American families. Industry groups are warning that the longer tariffs remain in place, the greater the risk of lost jobs, slowed investment and declining competitiveness in retail.
“The math is simple—every new tariff adds up to billions in extra costs,” an FDRA official said. “It is no longer a matter of pennies; it is reshaping our industry.”
