Shoe Wars

The shoe manufacturing industry died in the US decades ago. It all went overseas, primarily to China. During a couple of college summers, I worked for a leather importer. In essence, they were purchasing agents, basically middle men. I would see the order sheets and be stunned as to the sheer volume of hides headed over to China for sneaker manufacturers. The domestic use paled a thousandfold in comparison.

Well, Italy isn't giving up without a fight. They've managed to convince the EU to extend tariffs on shoes made in China and, to a lesser extent, Vietnam. Italy is complaining that these two countries are flooding the market with shoes at below market prices. And it isn't just because of the insanely low wages that the workers are receiving over there. There are accusations of government subsidies. It's a plausible accusation. The Chinese government owns a piece of just about every single business that operates within its borders.

China has threatened retaliation. Whatever. What market hasn't China tried this angle of attack in? In a couple years when Chinese cars start flooding the US market, expect more of the same. It's probably a good time to start learning Mandarin.

\_/
DED