US footwear trade chief warns tariffs are driving inflation more than oil

The head of the leading US footwear trade body has warned that government-imposed tariffs are now a primary driver of inflation for American families, outpacing the impact of rising oil prices. Matt Priest, president and chief executive of the Footwear Distributors and Retailers of America (FDRA), said that the industry is witnessing a "significant strain" on household budgets. His comments follow the release of data showing that footwear prices surged by 4.2 per cent in April—the sharpest increase in nearly four years.


Priest argued that while energy costs often dominate the inflation debate, the "punitive" nature of footwear tariffs is having a more immediate and sustained impact on retail prices. "The reality for footwear is that tariffs are driving inflation more than oil right now," Priest said. "This is evidenced by the fact that footwear prices climbed faster than overall inflation across men’s, women’s, and kids’ shoes."

The FDRA noted that import costs have risen by nearly 14 per cent, a burden the organisation claims is becoming increasingly difficult for retailers to absorb. Unlike shifting commodity prices, such as oil, many of these costs are already "fully baked in" because shoes currently on shelves were subject to historic tariff rates during the procurement process.

The footwear industry has long campaigned against the US tariff structure, which dates back decades and often disproportionately affects lower-priced goods. Critics argue these taxes function as a regressive levy on essential items.

"Shoes are a basic necessity, not a luxury," Priest added, calling on policymakers to intervene. "If policymakers are serious about helping families deal with rising costs, they must address one of the most punitive factors: footwear tariffs."

The warning comes as the US government considers further trade measures that could add additional layers of cost to the supply chain. Without a reduction in these duties, the FDRA warns that the "government-imposed costs" will continue to escalate, leaving consumers to pick up the tab at the checkout.