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The Footwear Distributors and Retailers of America (FDRA) has sent President Biden a letter asking to eliminate 301 tariffs causing kids’ shoe price spikes at retail. Supply chain costs are a factor, but duties have tripled on certain kids’ shoes and that cost magnification is causing price spikes higher than other consumer goods.
FDRA is asking the President to eliminate the 301 tariffs on kid’s shoes to help reduce the massive inflation impacting working class families are seeing, the organisation said in a media release.
Kids’ shoe prices have now reached the highest in over 70 years, causing massive sticker shock for those who can least afford it.
The Footwear Distributors and Retailers of America (FDRA) has sent President Biden a letter asking to eliminate 301 tariffs causing kids’ shoe price spikes at retail. Supply chain costs are a factor, but duties have tripled on certain kids’ shoes and that cost magnification is causing price spikes higher than other consumer goods, the organisation said.
“The rising costs we see in the shoe supply chain are a contributing factor for shoe retail price increases. That has been the lead, but the real headline has been buried. Government import taxes now make up 30 per cent of the price of certain types of children’s shoes at big box retailers where most working-class families shop. This is the major reason why kids’ shoe price inflation is well above other basic goods,” the letter read.
Kids’ shoes are hit with one of the highest tariff rates of any product sold in America. Children’s shoe tariff rates often start at 20 per cent or 37.5 per cent and can reach nearly 70 per cent. The highest tariff rates are generally placed on lower value footwear, creating a regressive hidden tax for working class families. In addition, for those few children’s shoes with relatively lower rates, the 301 tariffs led to drastic rate increases. With the added 301 tariffs, the tariff rate doubled for certain children’s casual shoes and slippers, and it more than tripled for certain plastic sandals, wool slippers and infant crib shoes.
These tariffs affect the cost of each shoe even before retailers have to add labour, transit, marketing and other costs to the final price tag.
Fibre2Fashion News Desk (KD)
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