American Shoemaking Companies Do Not Quite Approve Of Trump's Trade Policy.

Even if tariffs rise to push up the cost of American consumers, Nike and other companies still invest too much in these low wage economies. The number of new businesses employed by any US company will be reduced in the next few years and will depend on refined production technologies, such as 3D printing, to earn relatively small profits from us production workers. The same dynamics apply to other industries, such as auto parts, which have shifted production to Mexico in the past twenty years.

The speech of President Donald Trump's anti trade agreement has raised concerns in the market. From the appliance manufacturers to auto parts suppliers, American companies believe that most of the lost manufacturing jobs will not come back, but may increase the cost of consumers. The difference between Nike and its rival New Balance is whether the United States should support the span Pacific Partnership trade agreement (TPP).

This shows that if Trump management is trying to pursue a more tough trade agreement, this will be a problem. Like other manufacturers, shoemaking companies may be forced to charge higher costs to consumers, but few executives believe that the new employment situation in the United States is due to changes in import tariffs.

The United States imports about 98%. footwear Last year, 2 billion 500 million pairs. According to the US International Trade Commission, the average monthly income of Vietnamese footwear workers is about $245, while footwear tariffs can range from 0 to 48%, with an average of just over 13%.

In other industries, it is also facing the same situation. Ford motor chief executive Mark Fields said last week that tariffs on cars and trucks imported from Mexico would damage the auto industry and the US economy. But the company is still committed to making small cars in Mexico, because the profits made in the United States are too low.

Boston based New Balance produces 1/4 of shoes sold in the United States at five new England factories, but costs 25% to 35% more than shoes produced in Asia.

The company says it can make up for the cost disadvantage by producing high-end and customized shoes in American factories. If companies are listed, they may face pressure from shareholders who want to move their production abroad.

Nike, Beaverton, Oregon, imports almost all its shoes and strives for it. TPP Trade agreement. Nike said last year that if it passed the agreement, the company could create 10 thousand manufacturing and engineering jobs in the United States. But Nike says the aim of these efforts is to create more automated factories instead of employing thousands of assembly personnel for old-fashioned production.

New Balance believes it will jeopardize American factories by giving Nike And other competitors will make more profits, so that they can develop new machines, products and advertisements.

After the election, a spokesman for New Balance said TPP might fail. Many critics think his comments are Trump's support, and some consumers even burn their shoes. But the company said it was just to reflect its opposition to TPP, not to support Trump. "For us, we want to create and retain manufacturing jobs to support our five new England plants," the company said in a statement.