companies bought a vacation present from the Trump administration within the type of a one-year maintain on any further China tariffs on imports to the U.S.
An government order on the White Home web site disclosed additional particulars on the modification of reciprocal tariff charges within the new commerce association between the U.S. and China. A lot of the speak when the association was first disclosed on Oct. 30 was centered on a one-year time interval in reference to uncommon earth minerals. The presidential motion within the new order clarified that the U.S. will droop “heightened reciprocal tariffs” on imports from China by 12:01 a.m ET on Nov. 10, 2026.
The caveat within the government order is that the U.S. will monitor situations to make sure that China adheres to the commerce phrases, and if not, Trump “could modify this order as essential.”
Earlier than the brand new commerce association, the tariff risk on China imports was 100% beginning on Nov. 1. The brand new commerce deal has tariffs on China shoe imports within the vary of 20 p.c to 27 p.c, relying on classification and never together with current duties. The brand new fee vary is best than what it was as it’s each decrease than the non permanent reciprocal fee of 30 p.c and even decrease than the unique risk of a 55 p.c responsibility fee.
For the footwear trade, the brand new commerce deal does current some type of a assure for many of 2026.
“We welcome the pause on additional tariff escalation, and are optimistic it is going to convey some much-needed readability for firms planning for 2026 and past,” mentioned Steve Lamar, president and CEO of the American Attire & Footwear Affiliation (AAFA). “Nonetheless, true long-term stability calls for sturdy commerce agreements and renewed commitments with all of our key sourcing companions, particularly whereas the style trade continues to bear disproportionately excessive MFN (Most Favored Nation) and Part 301 tariffs.”
“Despite the truth that tariffs on footwear from China stay elevated — even with the discount within the fentanyl tariff — the White Home has offered some much-needed sourcing certainty with China for the foreseeable future. I’ve spoken to dozens of shoe firms since final week, and all have expressed aid that we’d really expertise some coverage stability out of Washington for no less than the subsequent 12 months,” Matt Priest, president and CEO of the Footwear Distributors and Retailers of America (FDRA), mentioned.
Priest famous that for footwear, the U.S. has now established equal tariff charges throughout “many of the nations we supply from in Asia. All issues thought of, our members will be capable of decide their finest sourcing methods based mostly extra on regular market realities and fewer on shifting or inconsistent tariff coverage.”
Tariff uncertainties in 2025 introduced one massive working headache for shoe firms. And the complexities of footwear manufacturing and dealing with upstream suppliers meant that for some companies it was simply simpler to remain put.
“The discount in China tariffs to twenty p.c is definitely higher than 30 p.c, however nonetheless too excessive. We pay the tariffs on the time our sneakers are imported and the now 20 p.c tariffs put appreciable stress on our money movement,” mentioned Rick Muskat, president and chief working officer of Deer Stags. “As well as, we’ve not been capable of set up ample worth will increase with our retail companions to offset the hit to our margins. So, whereas higher…nonetheless horrible.”
Muskat mentioned that at the moment, with the tariff regime in place, “we see no purpose to maneuver manufacturing from China, which isn’t straightforward to do.”
For some who moved out of China, transferring again could possibly be an possibility in some cases, mentioned one footwear professional, citing additional prices and timing as a result of logistics and necessities to keep away from transhipping penalties for manufacturing outdoors of China.
Steve Madden Ltd. is one instance of a agency that moved a big portion of manufacturing out of China in anticipation of upper charges. However CEO Edward Rosenfeld informed Wall Road analysts in August that the corporate returned some work for fall again to China after contemplating the flexibility to make sure on-time supply, product high quality and/or unreasonable pricing in an alternate nation.
And in Wednesday’s convention name to traders after posting third quarter outcomes, Rosenfeld expressed warning in connection to the place the agency chooses to supply, though the discount within the tariff fee on China is a welcome improvement. Whereas the mathematics would possibly point out a transfer again to China is a good suggestion, he was advocating for the necessity to stay versatile.
“I believe that we’re going to watch out about that. We need to stay diversified. We don’t need to get again right into a place the place we’ve 70-plus p.c of our sourcing coming from one nation,” Rosenfeld informed traders. “And so we’re going to proceed to attempt to be diversified, nevertheless it clearly does give us larger flexibility to return to China, the place we have to get the best deliveries and high quality, pricing, velocity, et cetera.”
Different firms are persevering with with their current provide chain methods, or taking a look at additional diversification.
“Our class positively over listed in relation to reliance on China. Nonetheless, we do supply throughout and produce in a number of different nations now, primarily throughout southeast Asia, however we’re persevering with to discover and unlock different areas,” mentioned Jack Gindi, CEO of Floor Up Worldwide, a children’ footwear agency that creates sneakers below license for a lot of leisure and shopper manufacturers. “At the moment, I might say we’ve a a lot stronger and diversified provide chain than 18 months in the past. Whereas tariffs have had impacts, they pushed us to assume extra strategically about nation of origin variety, sourcing and design execution to leverage finest value/high quality.” He mentioned the one-year maintain on China tariffs will give his agency further time to diversify additional.
Crocs Inc. sources 13 p.c of its combine from China. The majority, at 47 p.c, is from Vietnam. CEO Andrew Rees mentioned in August that the corporate can “over the medium time period mitigate” the impression from tariffs from value financial savings within the provide chain, negotiations with factories and a few worth changes. When the agency posted third quarter earnings outcomes on Oct. 30, Rees emphasised that the corporate has made vital investments in its provide chain over the past a number of years, which has resulted in efficiencies and higher integration of the Crocs and Hey Dude provide chains.
“The impression on the style trade is considered one of aid — tempered with rapid brief and long run technique/sourcing choices. China as a vogue useful resource [for the moment is] nonetheless fairly viable for Spring 2026 by early Fall 2026 deliveries. Within the brief time period, the uptick for China will almost certainly be enhanced,” mentioned Rick Helfenbein, former chairman, president and CEO of the AAFA and now unbiased advisor.
Choosing flexibility in a single’s sourcing and provide chain methods could also be the most effective transfer if there may be capacity to try this since nobody actually is aware of what tomorrow could convey by way of commerce coverage. And there could possibly be one other glitch on the near-term horizon.
Arising would be the Supreme Courtroom resolution on whether or not Trump’s tariffs will stay in place. Former Commerce Secretary Wilbur Ross believes the Supreme Courtroom gained’t “knock out the entire thing.” In an interview with Ross, he defined that undoing the tariff would create a “big confusion in an entire lot of instructions.” One includes calculating what prices have been handed alongside and to whom. The opposite is having the Supreme Courtroom undoing the bilateral agreements that the U.S. has made with different nations.
Based on Helfenbein, if refunds are granted, “There could possibly be a mad scramble to type out the refunds — with potential disagreements as to who will get what — whereas, on the identical time, new sourcing choices could instantly must be made to counter any new tariffs that might be administered below completely different methods.” (Tariffs now are administered below the Worldwide Emergency Financial Powers Act, or IEEPA)
