After weeks of whiplash on whether U.S. trading partners would be hit with additional import duties, the picture seems to be clearer – for now.

As of Wednesday, President Donald Trump reversed part of his plan to impose reciprocal tariffs on U.S. trading partners. Now, the president has placed a 90-day pause on his reciprocal tariff plans, opting for a universal 10 percent rate for all trade partners except China. On Thursday morning, the White House clarified that China’s tariff rate will jump to 145 percent, effective immediately.

But for many mid-tier and luxury footwear brands that produce in Europe, the new 10 percent rate still has the shoe industry worried for what comes next.

“[This] is very bad news for European footwear,” Imanol Martínez, marketing and international business development director at the Federation of Spanish Footwear Industries (FICE), told FN in an email this week.

“Since the possible rise in tariffs was first mooted weeks ago, companies have already begun to negotiate with American importers to prepare for what could happen,” Martínez said. “The initial sales for the season have fallen by about 20 percent.”

Martínez added that there are fears that many of the contracts that have been signed already will not be fulfilled, so the sector estimates that at least another 10 percent of business will be lost.

As the European Union unites on its response to Trump’s moves, Martínez said European footwear groups must band together as well.

“The response cannot come only from Spain. It is also necessary to work together in Europe on directives and regulations, and to have a more realistic approach to the state of the industry in Europe. It is believed that the footwear sector is going to have a hard time, since it is a largely exporting industry,” the executive said.

Giovanna Ceolini, president of the Micam footwear tradeshow and Assocalzaturifici (the national association representing industrial shoemakers in Italy), shares the same concerns.

“From the outset, we have viewed the tariffs announced by Donald Trump with great concern, as they could represent yet another serious blow to Italian footwear — impacting our businesses and our workers,” Ceolini told FN. “Our association is closely monitoring the situation and is calling on the government and the European Commission to make every possible effort to prevent an escalation—especially in a market environment already made extremely complex by the consumer crisis in Europe and the wars in Ukraine and the Middle East.”

Ceolini added that the exposure of the footwear industry to U.S. tariff barriers is already a “critical issue,” citing that Italian footwear exports decreased 4.9 percent in 2024 from the prior year to 1.388 billion euros.

“The increase, which is even more pronounced for Asian countries, puts entire brand supply chains at risk: [volume-driven companies] will seek new destinations, placing further pressure on prices in the European market, especially in the mass market and mid-range segments,” Ceolini said.

For Portugal, the shoe industry there is not backing down. “From a principled standpoint, we reject protectionist measures. On the contrary, we always advocate for free, fair, and balanced trade,” a spokesperson for Portuguese footwear association APICCAPS, told FN. “Nevertheless, we were prepared for this moment, as we are finalizing a significant investment – 120 million euros – in areas such as automation, robotics, and sustainability.”

According to the spokesperson for APICCAPS, “the footwear sector will not give up on the market.” From a strategic standpoint, “considering that the resources at our disposal are not unlimited, international promotion efforts necessitate an efficient allocation of resources.”

For Portugal, the U.S. is a strategic market, ranking as the sixth destination for its exports. Over the last decade, Portuguese exports to the U.S. have doubled, reaching nearly 100 million euros by the end of 2024.

“Although we already export over 90 percent of our production to 170 countries, we consider the North American market strategic and a major focus for the Portuguese footwear industry in the coming decade,” Paulo Gonçalves, director at APICCAPS, added.

“The footwear sector is now in a much better position to approach the North American market, particularly following ongoing investments [from the Portuguese government] in automation and sustainability,” Gonçalves said. “We are in the American market to stay.”