Footwear Makers Push $5B Tariff Plan to Reinforce Supply Chain

Footwear Makers Push $5B Tariff Plan to Reinforce Supply Chain

Amid renewed calls for trade protectionism, American footwear manufacturers are urging the Trump administration to redirect tariff revenues toward rebuilding the domestic supply chain. The proposed $5 billion investment aims to modernize operations, reduce import reliance, and bolster military readiness.

Industry Push for Strategic Reinvestment

American footwear producers want tariffs to do more than punish foreign rivals, they want them to fund a domestic comeback. In a formal appeal to President Trump, the U.S. Footwear Manufacturers Association (USFMA) is calling for $5 billion in tariff-derived federal investment to strengthen local production capabilities and shift market share away from dominant overseas suppliers.

Currently, less than 1% of footwear sold in the U.S. is produced domestically, just 25 million of 2.7 billion pairs annually. USFMA’s vision is to increase that to 135 million, or 5% of the U.S. market, by accelerating factory investments, workforce expansion, and advanced manufacturing initiatives. Citing the promise of automation, additive manufacturing, and AI-enabled tooling, the group argues that American manufacturers are well-positioned to compete, if capital constraints can be lifted.

Industry leaders such as New Balance and DESMA have rallied behind the initiative, with recent lobbying efforts in Washington emphasizing the role footwear can play in broader industrial policy. Their message: the returns from tariffs should not sit idle, they should be reinvested to shore up the very sectors they are meant to protect.

National Security Framing Gains Traction

Beyond economics, the USFMA is positioning the footwear supply chain as a national security asset. During the Covid-19 pandemic, domestic textile and apparel firms proved critical in pivoting to emergency PPE production. Today, the group warns that the military remains vulnerable due to reliance on imported boots, many sourced from China and Vietnam.

According to a recent Department of Defense simulation, it would take over 18 months to mobilize domestic capacity to meet military demand in the event of a crisis. McCann, the association’s executive director, argued that the proposed BOOTS Act, which would mandate U.S.-made boots for all service members, would close this critical readiness gap.

The appeal to President Trump, and top defense and trade officials, positions the footwear sector not just as an economic engine but as a cornerstone of contingency preparedness. It’s a calculated move, drawing parallels with semiconductors and pharmaceuticals—sectors already seeing federal support under similar justifications.

From Trade Enforcement to Industrial Strategy

The footwear sector’s proposal reflects a growing recognition that tariffs, if retained, must be integrated into a broader industrial strategy. For sectors with strategic or security implications, such as footwear manufacturing, this shift could help close long-standing infrastructure and capability gaps. The challenge lies in execution, aligning fiscal policy with industrial priorities in a way that delivers measurable supply chain outcomes without distorting competition.

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