Trade tariffs and the Trump effect in the footwear industry

The footwear industry continues to be affected by shifts in global trade policies. While global demand for footwear is expected to increase by 7.6 percent this year, this rate remains behind the 8.4 percent expectation from the last quarter of last year.

The new customs tariffs implemented by US President Donald Trump are negatively affecting growth expectations in the sector and creating pressure on the global supply chain.

Regional economic performances are shaping growth expectations in the footwear industry. While annual sales worldwide are expected to reach 500.55 billion dollars, a strong increase in demand is projected in African and Asian markets. Growth of 14.9 percent is expected in Africa and 7.5 percent in Asia, while a more moderate increase is projected in North America and Europe. Declines are expected in South America and Oceania.

Industry representatives believe that Trump's import tariffs will continue to have negative effects for at least two more years. 62 percent of experts are of the opinion that these policies will have a generally negative impact on the sector. Countries dependent on foreign imports, in particular, are experiencing difficulties due to rising raw material and product costs.

Artificial intelligence is seen as a beacon of hope against the pressures in the sector. 60 percent of survey participants believe that artificial intelligence will accelerate creative designs and transform footwear development processes. Furthermore, it is predicted that product development time will be shortened through virtual prototyping.

Global footwear imports showed an increase of only 1.6 percent in 2024. While import growth was observed in the Netherlands, Poland, and the US, declines were recorded in Germany and Italy. While China continues to be the largest exporter, it experienced a small decline in its own imports.

Polyurethane demand will also increase in line with growth in the footwear industry. Polyurethane, which is widely used in shoe soles and inner support materials, is preferred due to its lightness and durability. Growth in the sector is also increasing the demand for polyurethane in the chemical industry. In particular, increasing pressure regarding the use of sustainable materials is accelerating R&D investments in recyclable or bio-based polyurethane solutions.

News Source: 12punto