How Will Trump Tariffs Affect Sneaker Prices? Here’s Everything You Need to Know

With Donald Trump's second term as President comes the implementation of the tariffs against China that he had previously used in his first term. Trump has signed an executive order (one of many) that slaps a 10 per cent duties tax on all Chinese imports. China then returned the favour with their own 10–15 per cent tax on American imports, leaving both countries paying more for the same goods. For the sneaker industry, which has long relied on China as a key manufacturing hub, these changes will have far-reaching consequences for consumers. Let’s explore how these new tariffs might impact sneakerheads.

The TLDR on the Trump Tariffs

On the official front, Donald Trump's tariffs aim 'to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.' In reality, tariffs were created to boost the U.S. economy by encouraging domestic production and reducing reliance on imports. A tariff is a tax put on the company buying the goods from the impacted country; therefore, when Nike imports their Chinese manufactured products, it is the Swoosh that is footing the 10 per cent bill to the United States Government (i.e., China does not pay anything). American businesses have three options to cover this cost: 1) Absorb the extra cost and reduce their profits, 2) pass a portion of the tariff onto the consumer by raising the product cost, or 3) pass the full portion of the tariff onto the consumer by raising the product cost. The result? Price hikes that sneakerheads and casual consumers alike will likely feel.

How much is this actually going to affect the price of sneakers?

It’s hard to say since we don't know which option sneaker businesses will take, but it's most likely they will put the higher production costs onto buyers. Say Nike decide to pass on the full tariff cost onto consumers, an Air Jordan 1 that costs $160 USD right now could soon cost $176. This isn’t a ‘one-size-fits-all’ situation either, as everyday staples like and might see modest price bumps, but there might be steeper mark-ups for limited-edition drops and hyped colabs.

Which brands will be most affected by the tariffs?

Newsflash: China accounts for a staggering portion of global sneaker manufacturing, with each brand relying on them for around 20 per cent on average. Trump has also pushed the tariffs on other countries, so there's nothing stopping him from extending it to other major manufacturing regions like Vietnam. Let’s take a look at the big brands and their manufacturing in the region.

Nike

• Vietnam: ~50% of footwear production
• Indonesia: ~24% of footwear production
• China: ~22% of footwear production

adidas

• Vietnam: ~40% of footwear production
• Indonesia: ~30% of footwear production
• China: ~20% of footwear production

PUMA

• Vietnam: ~31% of total production
• China: ~25% of total production
• Indonesia: ~9% of total production

New Balance

• Vietnam: ~30% of total production
• China: ~25% of total production

ASICS

• Vietnam: ~51% of footwear production
• Indonesia: ~14% of footwear production
• China: ~28% of footwear production

How are the brands reacting?

Both and have publicly criticised the proposed tariffs, arguing that they would harm both consumers and the American workforce. adidas also outlined how higher prices could deter a potential buyer, ultimately shrinking the market. In a previous instance back in 2019, both brands, along with other footwear companies, signed an open letter urging the U.S. government to reconsider tariffs on shoes made in China.

Hold up. Can’t they just move their manufacturing?

Yes. Shifting operations is the first and most obvious solution to mitigate the impact of trade tariffs. But this ain’t easy. Building new factories, training workers and establishing supply chains takes a hell of a lot of time and cash – further driving up production costs. There's also a reason brands haven't done this already, it's a hell of a lot more expensive to manufacture in the United States and the only major brand to do so successfully is New Balance, but even then, that's for their limited MADE in USA series that comes with a hefty price tag to match.

What Do China's Retaliatory Tariffs Mean?

China has responded to Trump's tariffs with their own 10 per cent tax on American imports, which will further complicate the global sneaker market. American-manufactured sneakers or components shipped to China could become more expensive, reducing their competitiveness against local or non-U.S. brands. Chinese consumers might shift toward domestic brands like Li-Ning and ANTA, which wouldn't be subject to the same tariffs.

Okay, What’s Next?

The sneaker industry is bracing for impact. Brands are exploring ways to absorb the cost or pass them on to consumers and some are considering long-term strategies like diversifying production hubs. Expect more vocal lobbying efforts from those invested in the China region. In the short term, expect a sting to your hip pocket. Long-term impacts are hard to predict, but stricter tariffs on China may accelerate a shift to regions like Southeast Asia, India, and Latin America. Of course, this won’t happen overnight, but it’s worth considering. Ultimately, Trump’s tariffs are going to have a significant effect on the sneaker industry and everyone from the titans up top to the sneakerheads on the street will feel the ripple effects.