Vietnam’s footwear exports to the U.S. took a sharp fall in September, just a month after the new tariff hike came into effect in August.
According to data from Vietnam’s Ministry of Finance, footwear exports to the U.S. dropped to $611 million in September, down 27.3% from $840 million in August.
Vietnam, the world’s largest producer of athletic footwear, has long been a key manufacturing hub for major global brands.
The tariff increase was part of a sweeping trade measure announced by American President Donald J. Trump in April. Under the new rule, tariffs on Vietnam were raised to a total of 46%, which Trump described as a “discount” compared to the 90% levied on U.S. exports.
Vietnam became the top footwear manufacturing destination after many brands began shifting production from China in 2019.
Nike now manufactures about 50% of its shoes in Vietnam, while Adidas produces nearly 40%.
In July, a preliminary U.S.-Vietnam trade deal set a new reciprocal tariff rate of 20%. It was later confirmed that this new rate is applied on top of existing duties, adding more pressure on exporters. Negotiations between the two countries are still ongoing.
Crocs Inc., which sources 47% of its footwear for the U.S. market from Vietnam, is also adjusting to the changing market.
CEO Andrew Rees said during the company’s second-quarter earnings that declining store traffic in the U.S. had affected its wholesale business.
The drop in exports signals the immediate impact of the tariff increase, which could reshape global sourcing strategies for many footwear brands.
Source – Footwear News & Reuters
