Shoe Tariff And Specialty Shoes

The Boulder area locals are potentially in for some sticker shock soon if Congress doesn’t overturn the Obama administration decision to oppose the outdoor industry duty suspension bills.

Basically, what this means is that the cost of technical footwear which is commonly manufactured overseas may end up costing you much more than you’re used to paying.

Shoes such as waterproof and breathable footwear, rubber-soled boots, trail running shoes, etc. are often made overseas. Prices on this type of footwear are set to increase by as much as 38 percent as of January 1st, 2013 according to Outdoor Industry Association President Frank Hugelmeyer.

It’s all about tariffs. There’s currently a suspension on tariffs that might be imposed on these types of shoes, and ‘d-day’ is 1/1/13. (unless of course you believe in the Mayan Calendar – end of the world thing and on 12/21/12 it’ll all become a moot point anyway!)

Call, text, or email me today! 

I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.

Sources say that for the last six years, specialty shoe tariffs have hovered between 10 to 20 percent mainly in part due to “miscellaneous tariff bills” that temporarily reduce or suspend duties on technical shoes made overseas, to keep prices competitive.

The outdoor industry claims that this has allowed it to reallocate in excess of $30 million which has gone towards new product development, jobs, and of course lower prices.

Boulder-based La Sportiva has 16 models of shoes that fit into the category which may be affected by the tariffs. La Sportiva has 100 percent of its product line manufactured overseas. 60% in Italy, 28% in China, and 12% in Vietnam.

I’m not sure where you stand, but the types of footwear we’re talking about are not mainly purchased by the average joe. We’re talking high dollar shoes, many of them for specialty applications and use.

The affluent Boulder market would likely easily absorb higher prices for these specialty footwear, and imagine this… they could take that extra money and manufacture the shoes locally.

Hmmm… raise the price anyway, but instead of paying a tariff, flow the additional money into the local economy and jobs. Maybe the numbers don’t work, I don’t know and I’m not in the outdoor shoe business, but I am tired of hearing about decades worth of jobs moving ‘offshore’.

In any case, if you’re worried about prices going up, and you’ve been thinking about buying those new tech shoes… maybe now’s the time to stock up and fill up that closet!

Zachary Epps, GRI, ABR, REALTOR®, Eco-Broker®, full-time RE/MAX professional, and author of

The Boulder Real Estate and Neighborhood Guide 

The Boulder Condo Guide 

The Home Buyer’s Handbook

Call, text, or email me today!… I’d seriously enjoy having the opportunity to talk to you about your plans if you’re moving, or if you know someone who is considering a move, and needs some straight answers.

Comments

Got something to say?