The luxury sneaker industry is facing a significant threat from the latest tariffs imposed by the Trump administration, which could have far-reaching consequences for small businesses like Devlin Carter’s SIA Collective.

High-Ticket Tariffs

Devlin Carter, the founder of SIA Collective, is one of the many small business owners who rely heavily on shipments from countries like China, where 90% of his shoes are produced. The latest tariffs have raised the cost of importing goods from China to the United States, making it difficult for Carter to maintain his luxury sneaker business.

  • Tariffs have raised the cost of importing goods from China by as much as 50%
  • Small businesses like SIA Collective are struggling to absorb the increased costs
  • The tariffs could have a ripple effect on the entire sneaker industry

The Economics of Tariffs

The sneaker industry is a $70 billion-a-year enterprise, and with almost no sneakers manufactured in America, the latest tariffs have the industry reeling. Economists like Peter Schiff have warned that the tariffs could lead to a decrease in sneaker sales, as prices rise and consumers become more cautious.

  1. Most sneaker goods are produced in countries like Vietnam and Taiwan, which are subject to high tariffs
  2. Economists predict that the tariffs could lead to a decrease in sneaker sales and higher prices
  3. The impact of tariffs on the sneaker industry will be felt across the global economy

Small Businesses on the Line

Small businesses like SIA Collective are facing a significant challenge in the wake of the tariffs. The cost of importing goods from China has increased significantly, making it difficult for Carter to maintain his business.

“These are ridiculous tariffs that make no sense. Small businesses like mine have to pay these tariffs, and it’s not a small thing. It’s a lot. So there’s no way to see this as something that’s good — for anybody.”
— Devlin Carter, founder of SIA Collective

The Tariff Impact on Consumers

Consumers like Earl West, a confirmed sneakerhead, are also feeling the impact of the tariffs. West has collected over 1,800 pairs of athletic shoes, but the tariff-induced price increases are making it difficult for him to purchase new shoes.

  • The tariffs have upset West’s planned sneaker purchases, making it difficult for him to afford new shoes
  • West often purchased shoes from countries like the United Kingdom, Germany, and Hong Kong, but the tariffs have made it more expensive to import shoes from these countries
  • Resellers like West are also feeling the impact of the tariffs, as they have to buy shoes at a higher rate than they can sell them for

A Global Economic Impact

The tariffs have a broader impact on the global economy, as the sneaker industry is a significant contributor to the global economy. The tariffs could lead to a decrease in sneaker sales, as prices rise and consumers become more cautious. The tariffs will have a ripple effect that puts the future of many small sneaker companies in jeopardy

A Solution for Small Businesses

Small businesses like SIA Collective are searching for a solution to the problem posed by the tariffs. Carter has stated that he will have to raise prices to maintain his business, which could have a ripple effect on the entire sneaker industry. “I don’t know how many of my supporters feel like they’re about to lose their job. They could be thinking: ‘I need to put this toward groceries. I think we’re going into a recession, so I’m not spending money.’ If you feel like your job is shaky and the economy is shaky, your way of life is shaky, you go into survival mode. And in survival mode most people don’t spend. And that comes back to hurt the small-business owner.”

A Warning from Economists

Economists like Peter Schiff have warned that the tariffs could lead to a decrease in sneaker sales, as prices rise and consumers become more cautious. “The result will be fewer sneakers sold in the U.S. at much higher prices,” said Peter Schiff. “The tariffs will have a ripple effect that puts the future of many small sneaker companies in jeopardy.”

A Response from Trump

When asked by a reporter if the American public’s “pain threshold” could handle the impact of his tariffs, Trump responded: “I think your question is so stupid. I don’t want anything to go down. But sometimes you have to take medicine to fix something.”

A Concern for Small Businesses

The tariffs have raised concerns for small businesses like SIA Collective, which relies heavily on shipments from countries like China. “These are ridiculous tariffs that make no sense. So there’s no way to see this as something that’s good — for anybody.”

A Call to Action

The tariffs have sparked a call to action for small businesses like SIA Collective to find alternative suppliers or to raise prices to maintain their businesses. “Say I pay $100 to have a pair of shoes made in China. With the tariffs, that shoe now costs $150 or more [to make]. And it shouldn’t. It’s unnecessary.”

A Conclusion

The tariffs have a significant impact on the luxury sneaker industry, with small businesses like SIA Collective facing significant challenges. The impact of the tariffs will be felt across the global economy, and small businesses like SIA Collective will have to find a solution to maintain their businesses.