The Daily Update - Footwear Giants Warn Trump

Adidas, along with Nike and other US footwear giants have signed an open letter to US President Trump urging him to reconsider his policy of trade tariffs against China, which the industry believes would have a devastating effect on its market. In all, 173 companies have signed the open letter, which as well as being posted on the industry trade association's website, was also sent to Larry Kudlow, director of the National Economic Council, Steve Mnuchin, the Treasury Secretary, and Wilbur Ross, the Commerce Secretary.

The letter, dated yesterday, pleaded ‘On behalf of our hundreds of millions of footwear consumers and hundreds of thousands of employees, we ask that you immediately stop this action to increase their tax burden’ adding ‘Your proposal to add tariffs on all imports from China is asking the American consumer to foot the bill. It is time to bring this trade war to an end’. The footwear makers believe the current policy would be ‘catastrophic for our consumers, our companies and the American economy as a whole’. Although Trump continues to state China would pay the tariffs, others are not so sure, with even Larry Kudlow believing ‘both sides will pay’. The letter clearly states that the industry also believes ‘both sides‘ will pay as its states ‘As an industry that faces a $US3 billion duty bill every year, we can assure you that any increase in the cost of importing shoes has a direct impact on the American footwear consumer’.

Trump was also in the firing line from Iran's director of foreign affairs, Hossein Amir-Abdollahian, who said in a CNN interview that Trump was a ‘crazy president’ whose threats against the Middle Eastern country are not going to work. He told CNN ‘In his mind, Trump thinks he has a gun to Iran's head with sanctions and he is trying to shut down our economy’ adding ‘This is all in his imagination. Now he wants us to call him? This is a crazy president!’. Amir-Abdollahian went on to say that if Trump is willing to talk, he’s not only going to have to show ‘some respect’ but also have a consistent message.

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