U.S. President Donald Trump announced a preliminary trade agreement with Indonesia, setting a 19% tariff on goods exported from the Southeast Asian nation to the U.S.
The move follows Trump’s earlier threat of imposing a 32% tariff, which has now been revised after direct talks with Indonesian President Prabowo Subianto, as shared by Trump on his Truth Social platform.
While the deal with Indonesia appears to be moving forward, trade negotiations with the UK and Vietnam remain unresolved. In particular, the U.S. footwear industry has expressed concern over the uncertainty surrounding tariffs on Vietnamese imports. Matt Priest, President and CEO of the Footwear Distributors and Retailers of America (FDRA), warned that businesses remain unclear whether the 20% tariff on Vietnamese sneakers will stand or if additional duties will apply.
Meanwhile, Brazil—the world’s fifth-largest footwear producer—faces the highest tariff threat to date, with Trump proposing a 50% levy on Brazilian imports.
Footwear brands, reacting to the escalating tariff tensions, reported in their Q1 earnings that they plan to raise prices selectively, rather than across their entire product lines.
Rob Holston, Global Consumer Products Sector Leader at EY, cautioned that rising tariffs could reshape consumer behavior, making shoppers more price-sensitive and selective. He further noted that tariff hikes will have broader implications on overall cost structures in the consumer goods industry.
Comment here