Tariffs Are the Top Concern For Shoe Execs in 2025, FDRA Finds
A new survey from The Footwear Distributors and Retailers of America (FDRA) revealed that the government’s tariff policy is the top issue for a majority of shoe executives going into 2025.
The FDRA’s Q4 2024 Shoe Executive Business Survey showed that a record-high number of executives have cited governmental actions on tariffs as the most prominent issue likely to define business over the next six months. The data represents a tripling from the prior quarter, where trade policy was also cited as a key issue moving forward.
The data comes as Donald Trump, fresh off his 2024 election win, announces new tariff plans that could have dire impacts on the cost of footwear. Ninety-nine percent of the shoes sold in the United States are imported from primarily China, Vietnam and Indonesia.
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Trump vowed this year to impose a 10 to 20 percent tariff on imports from all foreign countries and an additional 60 to 100 percent tariff on imports specifically from China. The President-elect also recently said he plans to impose a 25 percent tax on all products entering the U.S. from Canada and Mexico, plus an additional 10 percent tariff on imports from China.
According to the FDRA survey, three in five respondents expect to see higher costs due to tariffs in 2025, and 37 percent expect to see retail prices raise by more than 5 percent next year.
Tariffs also emerged as the hottest topic throughout market week in New York and in multiple executive statements during earnings calls and interviews.
For example, Foot Locker chief executive officer Mary Dillon told FN in an interview last week that the retailer will monitor any updates related to potential tariff changes that could possibly impact business. Foot Locker’s direct exposure to China is limited, though Dillon noted that brand partners could see more of an impact. Other brands discussed the impact as well.
“The tariff talk around China in particular and trading partners at large is top of mind,” Jared Fix, who joined Toms as chief executive officer in July, told FN in an interview. “We have world class manufacturing partners who are committed to this brand. So if we need to have an ex-China manufacturing strategy, we can do that.”
Despite the concern with regard to tariffs, executives’ outlook for the economy over the next six months improved and was the most positive it has been in 13 quarters. The outlook for strong shoe shoppers also hit the highest level in 13 quarters and more than half of respondents said they expect their company sales to rise over the next six months.
