Blab Business
Footwear Prices to Rise 5% Amid Tariff and Supply-Chain Pressures, FDRA Survey Shows
Retailers are preparing for a sharp uptick on the shoe rack.
According to the Footwear Distributors and Retailers of America (FDRA) Second‑Quarter Shoe Executive Business Outlook Survey released in early June, one in three U.S. shoe executives anticipate that retail prices on store shelves could climb as much as five percent in 2026. The same survey also shows that more than two in three respondents see a weaker economic outlook and that operating and landed costs have risen over the past six months.
FDRA president and chief executive officer Matt Priest said the organization will continue to advocate for consumers and the industry as prices rise. “We will continue to be the advocate for our consumers and for the industry at large to try to drive prices down at a time when the numbers are going in the wrong direction,” Priest told a media briefing on Wednesday.
The survey’s price data mirror the broader inflation environment. In May, the Consumer Price Index for footwear rose 4.2 percent overall, but the FDRA data show a 5.2 percent increase for footwear as a category. Men’s shoes jumped 5.4 percent, the largest rise in 54 months; women’s shoes rose 6.2 percent, the largest in 45 months; and children’s shoes increased 2.3 percent.
Priest explained that tariffs and the conflict with Iran have pushed input costs higher. Many athletic shoes are made with petroleum‑derived materials, and some FDRA members reported up to a 25 percent increase in those inputs because of the Iran‑U.S. war. That cost increase translates into roughly a five percent rise in the finished‑good price as it crosses the border. The impact has been gradual because much of the inventory used before the conflict began has already been sold.
The FDRA survey also highlighted a dimming six‑month outlook. Over half of respondents said landed costs could rise as much as 10 percent in 2026, and nearly two in three are not expecting hiring to change in the next six months.
FDRA is lobbying for tariff reductions to curb consumer costs. The organization is countering a proposed tariff replacement for the Section 122 tariff, which is 10 percent across the board and expires on July 24. In a letter dated June 25, 16 House Republicans asked the U.S. Trade Representative, Jamieson Greer, to cap tariffs at 20 percent. The letter argued that cumulative tariff stacking on apparel and footwear could create rates well above those faced by other sectors.
In Washington, FDRA is participating in hearings on a proposed 25 percent tariff on goods from Brazil and on forced‑labor issues. The organization’s message is that additional tariffs on footwear harm American consumers and do not alleviate burdens on U.S. commerce. FDRA notes that Brazil supplies 11 million pairs of footwear to the U.S. each year and has the capacity and infrastructure to meet demand. The country is the second‑largest Western Hemisphere supplier after the United States, which produces less than one percent of footwear.
Priest testified that tariffs could limit sourcing options in the Western Hemisphere and that the proposed tariff remedy would not ease U.S. commerce burdens. He also highlighted that only a few thousand pairs of U.S. footwear are exported to Indonesia, Cambodia, and Bangladesh, so a tariff remedy would not help U.S. brands.
FDRA plans to file comments by Friday on a Board of Trade proposal linked to a trade deal between President Trump and Chinese President Xi Jinping. The comments will ask the administration to remove all footwear tariffs and to exclude footwear lines from the current tariff regime on Chinese goods.
The survey’s findings suggest that while the footwear industry has rebounded in 2025, 2026 could see one of the fastest price increases in three decades. The industry’s future will hinge on how tariffs, input costs, and trade policy evolve in the coming months.
According to the Footwear Distributors and Retailers of America (FDRA) Second‑Quarter Shoe Executive Business Outlook Survey released in early June, one in three U.S. shoe executives anticipate that retail prices on store shelves could climb as much as five percent in 2026. The same survey also shows that more than two in three respondents see a weaker economic outlook and that operating and landed costs have risen over the past six months.
FDRA president and chief executive officer Matt Priest said the organization will continue to advocate for consumers and the industry as prices rise. “We will continue to be the advocate for our consumers and for the industry at large to try to drive prices down at a time when the numbers are going in the wrong direction,” Priest told a media briefing on Wednesday.
The survey’s price data mirror the broader inflation environment. In May, the Consumer Price Index for footwear rose 4.2 percent overall, but the FDRA data show a 5.2 percent increase for footwear as a category. Men’s shoes jumped 5.4 percent, the largest rise in 54 months; women’s shoes rose 6.2 percent, the largest in 45 months; and children’s shoes increased 2.3 percent.
Priest explained that tariffs and the conflict with Iran have pushed input costs higher. Many athletic shoes are made with petroleum‑derived materials, and some FDRA members reported up to a 25 percent increase in those inputs because of the Iran‑U.S. war. That cost increase translates into roughly a five percent rise in the finished‑good price as it crosses the border. The impact has been gradual because much of the inventory used before the conflict began has already been sold.
The FDRA survey also highlighted a dimming six‑month outlook. Over half of respondents said landed costs could rise as much as 10 percent in 2026, and nearly two in three are not expecting hiring to change in the next six months.
FDRA is lobbying for tariff reductions to curb consumer costs. The organization is countering a proposed tariff replacement for the Section 122 tariff, which is 10 percent across the board and expires on July 24. In a letter dated June 25, 16 House Republicans asked the U.S. Trade Representative, Jamieson Greer, to cap tariffs at 20 percent. The letter argued that cumulative tariff stacking on apparel and footwear could create rates well above those faced by other sectors.
In Washington, FDRA is participating in hearings on a proposed 25 percent tariff on goods from Brazil and on forced‑labor issues. The organization’s message is that additional tariffs on footwear harm American consumers and do not alleviate burdens on U.S. commerce. FDRA notes that Brazil supplies 11 million pairs of footwear to the U.S. each year and has the capacity and infrastructure to meet demand. The country is the second‑largest Western Hemisphere supplier after the United States, which produces less than one percent of footwear.
Priest testified that tariffs could limit sourcing options in the Western Hemisphere and that the proposed tariff remedy would not ease U.S. commerce burdens. He also highlighted that only a few thousand pairs of U.S. footwear are exported to Indonesia, Cambodia, and Bangladesh, so a tariff remedy would not help U.S. brands.
FDRA plans to file comments by Friday on a Board of Trade proposal linked to a trade deal between President Trump and Chinese President Xi Jinping. The comments will ask the administration to remove all footwear tariffs and to exclude footwear lines from the current tariff regime on Chinese goods.
The survey’s findings suggest that while the footwear industry has rebounded in 2025, 2026 could see one of the fastest price increases in three decades. The industry’s future will hinge on how tariffs, input costs, and trade policy evolve in the coming months.
