BALTIMORE — Baltimore based Under Armour is among dozens of shoe retailers seeking exemptions from President Donald Trump's reciprocal tariffs.
The multi-billion dollar sportswear company signed onto a letter the Footwear Distributors and Retailers of America (FDRA) sent to Trump on April 29.
In the letter retailers say their industry is already hit hard by existing tariffs.
"For example, children’s shoes often have rates of 20 percent, 37.5 percent, and higher, before accounting for the reciprocal tariffs," FDRA's letter reads. "The new reciprocal rates are stacked on top of the existing high footwear tariff rates, meaning that many American footwear companies will now have to pay a tariff ranging from more than 150 percent to nearly 220 percent."
FDRA warned the administration continued tariffs would not bring manufacturing back to the U.S., but rather "force hundreds of businesses to close, eliminating tens of thousands of jobs."
"Many of our companies do not know how, or even if, they are going to pay the costs of already shipped merchandise now arriving on U.S. shores," the letter adds. "The inability to pay for these immediate and unforeseen additional tariffs places many U.S. footwear businesses at imminent risk."
It's not the first time FDRA lobbied a President to reduce tariffs.
They also sent the previous Biden Administration a pair of letters in April and May of 2024.
In both letters to Biden, FDRA claimed shoe prices were soaring at the highest rate since the 1980s.
"Shoe imports are hit with an average 12 percent duty rate versus other imported goods that average around 2 percent," the April letter stated. "Working-class families bear the brunt as shoe tariff rates are regressive. Children's shoes and lower-value shoes often face import tax rates of 20 percent, 37.5 percent and can reach nearly 70 percent in some cases. The added 7.5 percent 301 duty on certain shoes escalates prices further."
As for Under Armour's current financial situation, President and CEO Kevin Plank said third quarter earnings for fiscal year 2025 "exceeded expectations," despite overall revenue being down six percent, equating to $1.4 billion.
Some of the positive signs included increases in sales and gross margins.
It should be noted, the third quarter of fiscal year 2025 ended December 31, 2024, prior to Trump retaking office. A large portion of Under Armour materials are made in Asia, where some of Trump's tariffs are highest.
Under Armour's latest earnings report was issued less than a year after launching their financial and operational restructuring plan.
