Shoe Firms Await Next Step in U.S.-China Trade

Makers of athletic footwear, a likely target of U.S. tariffs against China, said Monday that they are already planning to shift production elsewhere should efforts to avert a trade war fail.

The manufacturers, on the last day of a big sporting goods trade show here, said the major loser in a trade war would be the U.S. consumer, who would soon have to pay more for athletic shoes.

There was some uncertainty among exhibitors at the Super Show over which sporting goods would be affected by any U.S. sanctions, though many agreed that the $7.9-billion athletic footwear business, which depends heavily on Chinese imports, would be a likely target.

“We’re not letting all our eggs be in the same basket. If we have to, we could shift production to Indonesia--of course, not overnight,” said Alain Ronc, president of Nashville, Tenn.-based Mitre Sports International. Mitre is a leading producer of soccer equipment, including shoes.

Ronc said most U.S. footwear companies rely on China for about half their production. He said most firms probably have contingency plans.

Tom Cove, director of government operations for the Sporting Goods Manufacturers Assn., said the 100% tariff proposal is limited to certain specific styles such as women’s models and some jogging shoes, and that that should make it easier for companies to adapt.