U.S. Midterm Results Show Economy, Such as Shoe Prices, is Top of Mind

Americans on Tuesday voted with their pursestrings, sending a strong message about the U.S. economy that includes the high cost of goods — including shoe prices — and have put the Democratic party in control of the U.S. House and Senate.

One footwear trade association is already looking at how it can work with all parties to effect affordability for all.

“One message from this election is clear: Americans want Washington focused on making everyday life more affordable. Families are paying attention to the cost of necessities, and they expect their elected leaders to deliver meaningful relief,” said Matt Priest, president and chief executive officer of Footwear Distributors and Retailers of America (FDRA). He noted that with Democrats taking control of the U.S. House and Senate, there is opportunity to put affordability at the top of the agenda, with footwear as a good place to start.

“Every child heading to school, every nurse reporting for a shift, and every worker earnings paycheck needs shoes. Yet footwear remains among the most heavily taxed consumer products in America, with combined tariffs on many children’s shoes reaching as high as 87.5 percent,” Priest said. “These are basic necessities, not luxury goods, and families shouldn’t face such steep tariffs simply to buy the shoes their children need.”

The FDRA CEO emphasized that the trade group is ready to work with “Democrats, Republicans and the Administration to advance common-sense tariff reform that reduces or removes tariffs on everyday necessities and helps make life more affordable for American families.”

While American Apparel and Footwear Association president and CEO Steve Lamar also cited to affordability as the No. 1 issue for voters, he said it “remains to be seen” if there will be true change in trade policy. “If these newly elected officials are serious about responding to the electorates’ concerns, reducing tariffs on everyday essentials should be on their desks before their nameplates are.”

And Dan Anthony, executive director of the over 1,200 small business members of We Pay the Tariff, emphasized that tariff cuts are key to address affordability.

“These elections should be a nail in the coffin for price-hiking tariffs. For two years, small businesses spoke out about the harms of tariffs and poll after poll found Americans blamed tariff for rising prices,” Anthony said. “They were ignored, but this shows Congress can’t afford to ignore the anti-tariff anger any longer.”

Anthony said that Congress has to take on affordability, and the “fastest way to do that is to roll back tariffs.” And while restoring Congress’ constitutional authority over tariffs is necessary, it isn’t enough: “If Congress wants prices to actually come down, and not just rise more slowly, it has to deliver real tariff cuts.”

U.S. strategist Keith Parker at UBS said to keep an eye on oil, Iran talks and Strait of Hormuz flows.

Oil has driven price increases in footwear, such as rubber in sneakers and other synthetic materials, as well as in higher fuel costs connected to shipping and even energy usage at factories. And the expectation is that if costs keep working their way through the supply chain from this fall into next year, retail prices could go even high for footwear by next summer.

And FDRA already said this past summer that shoe prices could see a five percent spike later this year due in part to higher input costs. Moreover, the war with Iran has impacted shipping through the Strait of Hormuz, which also hurt shoe prices.

And while higher prices make it look like sales are in good shape for shoe retailers, they’re also selling fewer pairs. And consumers have shifted spending patterns on footwear, looking for one good multi-purpose pair that can get them through multiple activities during the day instead of having separate shoes targeting different activities.