Trump’s China tariffs threatens Framingham shoe company Topo

Then on Monday, Trump said he was ready to slap another 50 percent tariff on imports from China, followed by yet another threat Wednesday of an additional 21 percent.

The sum total could bring the tariffs on Post’s shoes to 142 percent.

Post worries this will translate into much higher prices for fans of his Specters, Phantoms, and other shoes, possibly adding more than $100 to the retail cost of a pair.

“We haven’t said anything to our sales reps, even to our internal team, about raising prices, but of course I know if these tariffs continue to go forward, I’m going to have to raise prices,” Post said in an interview.

What does it all mean for the runners who buy Topo shoes, which are known for their unique fit and natural feel? Post offered a striking estimate of how it could add up for a pair of shoes that costs $40 to manufacture in China: An import tariff of 121 percent would translate to another $48.40 — or $56.80 with a 142 percent tariff, assuming Trump’s new tariffs are cumulative. Shipping could cost another $5. Then, after marketing and other costs and retail markups get factored in, shoes that cost $160 at a store today could end up costing nearly $300 down the road.

Of course, it’s not just running shoes getting hit. So extrapolate Topo’s experience on so many other consumer products coming from China, from cellphones to toys to TVs.

China has not been a favored trading partner for a while. One year ago, Post faced tariffs of 17 percent for Chinese-made shoes, including a 7.5 percent levy in Trump’s first administration.

He had hoped that latter tariff might be rescinded under President Joe Biden, but it didn’t happen.

“It’s not ideal,” Post said of that earlier, lower tariff of a year ago. “But it’s something we could deal with.”

Then came the second Trump administration, and a flurry of new tariffs aimed squarely at China manufacturers. First, two tariffs of 10 percent apiece were imposed in February and March. Then came another tariff of 34 percent, as part of a wide array that Trump announced on April 2, aka “Liberation Day,” to take effect on Wednesday.

On Monday, Trump announced he would impose an additional 50 percent tariff on Chinese imports this week if China did not back off from its own retaliatory tariffs. Then Trump doubled down on Wednesday, announcing in a social media post that he would increase his China tariffs by another 21 percentage points, even while putting most tariffs to many other countries on hold for 90 days, increasing the potential tariff for Topo shoes made in China to 142 percent.

“The administration’s decision to move forward with these tariffs might be one of the worst economic/business decisions of the last 100 years,” Post said. “Completely flawed in strategy with no vision for the future, these decisions are impulsive, reckless, and dangerous.”

Post hopes to have up to half of his shoes made outside of China by the end of the year as he sends more work to Vietnam, which is facing lower Trump administration tariffs, but it takes time to diversify a supply chain. (Much of the new tariff on Vietnam was included in the 90-day pause by Trump on Wednesday.)

Post’s suppliers in China are trying to work with him to keep prices in check, but the benefits of that help are minimal. He said there simply aren’t enough factories in the shoe supply chain left in the United States to make shoes domestically, despite efforts in recent years by New Balance to spur some domestic work with its New England plants. (Most New Balance shoes are still made overseas.)

The disruption follows a banner year for Topo. The 13-year-old company, now majority-owned by Designer Brands Inc., saw revenue grow more than 70 percent last year, to nearly $80 million. The shoes are now available in all REI stores, and Fleet Feet is expanding the locations where they are sold, at its namesake chain as well as its Marathon Sports group.

Post said he worries about the people whose livelihood depends on Topo, either through direct jobs or sales contracts — about 100 families in total. He said his primary goals are taking care of his 30-plus employees and making sure the quality of Topo shoes doesn’t drop.

That means a price increase would be inevitable if Trump doesn’t back down from these latest China tariffs, although the increase wouldn’t happen right away because Post bought extra inventory to prepare for another busy 2025. But it would be around the corner, possibly as soon as this summer.

“When Trump got elected, I knew something like this could happen, and I wanted a little cushion,” Post said. “He surprised everyone . . . and went much harder than I think everyone was expecting.”

Jon Chesto can be reached at [email protected]. Follow him @jonchesto.