Yesterday, US President Donald Trump revealed he is considering piling 200 billion USD of additional trade tariffs onto the 34 billion USD already in place. The footwear export business in China has already been declining in recent years because of rising labour costs and lack of market expertise. These new trade tariffs, especially if the proposed 200 billion USD is added to them, will certainly hasten that decline.
This giant blow to China’s economy is exactly what Donald trump intended to do with the tariffs. An unfortunate side effect, though, is that US footwear brands already having their products manufactured in China will also take a big hit. They’ll have to either spend a lot more on importing their goods than they did before or look for development and production opportunities outside of China.
As manufacturing and development in China become less viable, though, surrounding countries are picking up the slack. Vietnam in particular is rising to prominence in the footwear export sector. Bloomberg notes this trend, which has really picked up in the past few years, is due largely to a young workforce and an ever-growing productivity to working wage ratio. Trade tariffs that are favorable towards Vietnam and unfavorable towards China have always played a part, too, and America’s most recent addition to those uneven tariffs will only further the discrepancy in footwear export fluctuations between the two nations.
More and more companies are turning to organizations like Innolux Group Asia to help them establish superior footwear development and manufacturing in Vietnam. The trade war in which America and China are currently engaged and numerous other footwear market trends indicate this trend will continue to grow in coming years.