companies obtained a vacation reward from the Trump administration within the type of a one-year maintain on any further China tariffs on imports to the U.S.
An govt 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 discuss 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 way of 12:01 a.m ET on Nov. 10, 2026.
The caveat within the govt order is that the U.S. will monitor circumstances to make sure that China adheres to the commerce phrases, and if not, Trump “might modify this order as needed.”
Earlier than the brand new commerce association, the tariff menace 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 % to 27 %, relying on classification and never together with current duties. The brand new charge vary is best than what it was as it’s each decrease than the momentary reciprocal charge of 30 % and even decrease than the unique menace of a 55 % obligation charge.
For the footwear business, 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 can deliver 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 business 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 supplied 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 not less than the following yr,” 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 “a lot of the nations we supply from in Asia. All issues thought-about, our members will have the ability to decide their greatest 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 % is actually higher than 30 %, however nonetheless too excessive. We pay the tariffs on the time our footwear are imported and the now 20 % tariffs put appreciable strain on our money circulate,” mentioned Rick Muskat, president and chief working officer of Deer Stags. “As well as, now we have not been capable of set up adequate 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 cause to maneuver manufacturing from China, which isn’t simple to do.”
For some who moved out of China, transferring again may very well be an choice in some cases, mentioned one footwear knowledgeable, citing further prices and timing attributable to 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 instructed Wall Avenue analysts in August that the corporate returned some work for fall again to China after contemplating the power to make sure on-time supply, product high quality and/or unreasonable pricing in another 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 charge on China is a welcome improvement. Whereas the mathematics may point out a transfer again to China is a good suggestion, he was advocating for the necessity to stay versatile.
“I feel 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 now we have 70-plus % of our sourcing coming from one nation,” Rosenfeld instructed 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 precise deliveries and high quality, pricing, pace, et cetera.”
Different firms are persevering with with their current provide chain methods, or taking a look at additional diversification.
“Our class undoubtedly over listed on the subject of reliance on China. Nevertheless, 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 youngsters’ footwear agency that creates footwear beneath license for a lot of leisure and client manufacturers. “As we speak, I’d say now we have a a lot stronger and diversified provide chain than 18 months in the past. Whereas tariffs have had impacts, they pushed us to suppose extra strategically about nation of origin range, sourcing and design execution to leverage greatest price/high quality.” He mentioned the one-year maintain on China tariffs will give his agency further time to diversify additional.
Crocs Inc. sources 13 % of its combine from China. The majority, at 47 %, is from Vietnam. CEO Andrew Rees mentioned in August that the corporate can “over the medium time period mitigate” the impression from tariffs from price 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 business is one in all aid — tempered with instant brief and long run technique/sourcing choices. China as a style useful resource [for the moment is] nonetheless fairly viable for Spring 2026 by way of early Fall 2026 deliveries. Within the brief time period, the uptick for China will more than likely be enhanced,” mentioned Rick Helfenbein, former chairman, president and CEO of the AAFA and now unbiased guide.
Choosing flexibility in a single’s sourcing and provide chain methods could also be the perfect transfer if there may be capacity to try this since nobody actually is aware of what tomorrow might deliver when it comes to commerce coverage. And there may very well be one other glitch on the near-term horizon.
Developing would be the Supreme Court docket resolution on whether or not Trump’s tariffs will stay in place. Former Commerce Secretary Wilbur Ross believes the Supreme Court docket received’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 entails calculating what prices have been handed alongside and to whom. The opposite is having the Supreme Court docket undoing the bilateral agreements that the U.S. has made with different nations.
In keeping with Helfenbein, if refunds are granted, “There may very well 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 might instantly need to be made to counter any new tariffs that would be administered beneath completely different methods.” (Tariffs now are administered beneath the Worldwide Emergency Financial Powers Act, or IEEPA)
