Adidas joins footwear companies in open letter condemning Trump tariffs
Adidas, one of the world’s biggest names in sneakers and athleisure, joined with other footwear companies (including arch-rival Nike) as signatory of an open letter to US President Donald J. Trump. The theme of that letter? An unambiguous condemnation of his trade war with China. Specifically, the letter is calling on Trump to reconsider his tariffs on shoes made in China, which the signatories claim would be “catastrophic for our consumers, our companies and the American economy as a whole.”
Adidas’s share price is riding high this year – up 40% so far
Source: Yahoo Finance
173 companies, in all, signed the open letter. As well as Adidas and Nike, signatories included Under Armour, Cat Footwear, Crocs Inc., and other footwear giants. In the letter, they said: “On behalf of our hundreds of millions of footwear consumers and hundreds of thousands of employees, we ask that you immediately stop this action to increase their tax burden. Your proposal to add tariffs on all imports from China is asking the American consumer to foot the bill. It is time to bring this trade war to an end.”
The trade war has accelerated in recent weeks, as Mr. Trump has levied more tariffs on Chinese goods into the US as a punishment for slow process in negotiations – something he blames squarely on China. Beijing, unsurprisingly, disagrees with this assessment, and has responded in kind. At present, observers are hoping that a resolution could come into view next month at the G20 summit.
The open letter continues: “As an industry that faces a $3 billion duty bill every year, we can assure you that any increase in the cost of importing shoes has a direct impact on the American footwear consumer.”
According to the Footwear Distributors & Retailers of America, an industry body, the tariffs in question will cost US consumers an additional $7 billion per year, with working class people being disproportionally affected.
Dominion holds Adidas and Under Armour in its Global Trends Luxury Fund.
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