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| Shoe giants urge Trump to end trade war | Shoe giants urge Trump to end trade war |
| (about 2 hours later) | |
| Some of the world's biggest footwear firms are urging Donald Trump to end the US trade war with China, warning of a "catastrophic" effect on consumers. | Some of the world's biggest footwear firms are urging Donald Trump to end the US trade war with China, warning of a "catastrophic" effect on consumers. |
| In a letter signed by 170 companies, including Nike and Adidas, they said the President's decision to lift import tariffs to 25% will disproportionately impact the working class. | In a letter signed by 170 companies, including Nike and Adidas, they said the President's decision to lift import tariffs to 25% will disproportionately impact the working class. |
| They also warn that higher levies threaten the future of some businesses. | They also warn that higher levies threaten the future of some businesses. |
| "It is time to bring this trade war to an end," the firms urged. | "It is time to bring this trade war to an end," the firms urged. |
| Mr Trump lifted levies on $200bn worth of Chinese imports into the US from 10% to 25% more than a week ago after Washington and Beijing failed to reach a deal on trade. | Mr Trump lifted levies on $200bn worth of Chinese imports into the US from 10% to 25% more than a week ago after Washington and Beijing failed to reach a deal on trade. |
| China retaliated by announcing plans to raise levies on $60bn of US imports from 1 June. | China retaliated by announcing plans to raise levies on $60bn of US imports from 1 June. |
| The footwear companies who signed the letter, including Clarks, Dr Martens and Converse, claim that while the average US tariff on footwear is 11.3%, in some cases it can reach as high as 67.5%. | |
| "Adding a 25% tax increase on top of these tariffs would mean some working American families could pay a nearly 100% duty on their shoes," the companies wrote. | "Adding a 25% tax increase on top of these tariffs would mean some working American families could pay a nearly 100% duty on their shoes," the companies wrote. |
| "This is unfathomable." | "This is unfathomable." |
| When he lifted tariffs earlier this month, Mr Trump told companies that they could reduce costs by shifting production to the US. | When he lifted tariffs earlier this month, Mr Trump told companies that they could reduce costs by shifting production to the US. |
| However, the shoe-makers and retailers say that while they have been moving their sourcing away from China: "Footwear is a very capital-intensive industry, with years of planning required to make sourcing decisions, and companies cannot simply move factories to adjust to these changes." | However, the shoe-makers and retailers say that while they have been moving their sourcing away from China: "Footwear is a very capital-intensive industry, with years of planning required to make sourcing decisions, and companies cannot simply move factories to adjust to these changes." |
| The US and China are set to meet again to discuss trade at the G20 summit in Japan next month. | The US and China are set to meet again to discuss trade at the G20 summit in Japan next month. |
| In the meantime, however, the US has increased pressure on China by declaring a national emergency to protect US computer networks from "foreign adversaries", affecting Huawei, the Chinese telecoms giant. | In the meantime, however, the US has increased pressure on China by declaring a national emergency to protect US computer networks from "foreign adversaries", affecting Huawei, the Chinese telecoms giant. |