On Thursday, the European Union passed what has been called a “compromise” footwear anti-dumping tariff, which will levy a 16.5% charge on footwear manufactured in China and a 10% charge on Vietnamese footwear. Of the 25 EU nations in Brussels, nine countries voted in favor of the two-year measures and 12 against, with 4 countries abstaining. However, under this circumstance, EU laws dictate that abstentions count in favor of the proposal as they do not oppose it. While these duties are lower than the previous temporary duties, 19.4% on leather shoes from China and 16.8% on those from Vietnam, most importers and retailers are opposed to the new tariff.
Footwear Association of Importers and Retail chains, a trade group made up of several U.S. and EU companies that import leather footwear into the EU, is steadfastly opposed to the deal and is even raising questions of legality.
The tariffs will affect 11 out of every 100 pair of shoes sold in Europe, including children's footwear. Several U.S. outdoor and sports brands will be impacted by the duties, including Timberland, Wolverine World Wide, and Nike. In its most recent quarterly report, Wolverine World Wide (see the full story on page 5 of this issue) said that the existing duties impacted Q3 earnings by two cents per share and they are expecting a larger impact in Q4.
