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689 points taubek | 1 comments | | HN request time: 0s | source
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aimor ◴[] No.43633841[source]
Trying to summarize the summary for myself

From a $100 shoe that sells for $76:

- $24 goes overseas (22 cost, 2 freight)

- $8 goes to the US gov't (3 import, 2 Nike tax, 3 Footlocker tax)

- $33 goes to US employees or businesses (5 Nike marketing, 11 Nike expenses, 17 Footlocker expenses)

- $5 goes to Nike (11% return)

- $6 goes to Footlocker (8% return)

But now with 100% tariffs, it's a $100 shoe that sells for $100 (or a $132 shoe that sells for $100) and:

- $24 goes overseas (22 cost, 2 freight)

- $29 goes to the US gov't (22 import, 3 Nike tax, 4 Footlocker tax)

- $33 goes to US employees or businesses (5 Nike marketing, 11 Nike expenses, 17 Footlocker expenses)

- $7 goes to Nike (11% return, 7.15 exactly)

- $7 goes to Footlocker (8% return, 7.45 exactly)

And if a US shoemaker wanted to undercut the import, a Made in USA shoe that sells for $100:

- $7+ goes to the US gov't (? shoemaker tax, 3 Nike tax, 4 Footlocker tax)

- $79 goes to US employees or businesses (46 to shoemaker, 5 Nike marketing, 11 Nike expenses, 17 Footlocker expenses)

- $7 goes to Nike (11% return, 7.15 exactly)

- $7 goes to Footlocker (8% return, 7.45 exactly)

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SV_BubbleTime ◴[] No.43634868[source]
Is there a reason, be-it special buildings, tools, skills that shoes can not be made in the US to avoid the tariffs?

If Nike shoes exceed the cost of domestically produced shoes, isn’t that… like… kind of the point?

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gnopgnip ◴[] No.43640735[source]
You can buy made in USA sneakers like New Balance 990 series. Generally all the materials except the sole are US sourced. Retails for $200 a pair. What kind of sneakers do you buy?

Running a manufacturing business in the US is more expensive. Consumers largely won't pay more, it's a limited market. The machinery for molding soles only makes economical sense at a large scale.

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1. SV_BubbleTime ◴[] No.43647664[source]
They’ll pay more if the imported shoe costs the same or more.

The US does massive amounts of injection molding. I just signed off on my molds to be cut and run this month, how much experience do you actually have with this I wonder?