A new tariff plan in the U.S. could impact the sneaker fortunes of basketball stars like Michael Jordan, Shaquille O’Neal, and others. These sports icons, known for their dominance on the court, have built massive footwear empires that are now at risk.
Tariff Plan Raises Concerns for Sneaker Industry
In early April, former President Donald Trump introduced a major tariff plan aimed at correcting trade imbalances with global partners. As part of this plan, import duties on consumer products, including footwear, could rise up to 145%. This move has caused concern in the footwear industry, which includes popular brands like Nike, Adidas, Puma, Skechers, Crocs, and Under Armour.
The Footwear Distributors & Retailers of America (FDRA), which represents many of these brands, quickly voiced its opposition. On April 29, the FDRA sent a letter to President Trump, supported by 76 major footwear brands, asking for sneakers to be removed from the tariff list. The letter warned that the tariffs could cause a severe cash-flow crisis for companies that already have inventory on the way to U.S. ports. Many businesses are uncertain how to handle the additional costs of goods that are already in transit.
Industry Leaders Speak Out Against Tariffs
The FDRA’s request is clear: remove footwear from the tariff list. Industry leaders argue that these tariffs could hurt U.S. businesses and raise prices for consumers. They also question whether the plan would create the desired number of domestic manufacturing jobs. Critics worry that the tariffs will ultimately harm American companies without achieving the intended goals of the policy.
How Tariffs Could Impact Basketball Moguls
The impact of these tariffs could be especially significant for some of basketball’s biggest brand moguls. Michael Jordan’s Air Jordan line, part of Nike’s Jordan Brand, has been a financial powerhouse. Since 1986, Jordan has earned approximately $1.5 billion in royalties from his sneaker line. If the tariffs go through, Jordan could see a significant loss in revenue as prices for Air Jordans rise due to higher import duties.
Shaquille O’Neal, who became the President of Basketball Operations at Reebok in 2023, could also face challenges. O’Neal has big ambitions for Reebok, hoping to challenge Nike’s dominance in the sneaker market. However, the rising import costs could make it harder for Reebok to compete with Nike, Adidas, and other brands. Even though O’Neal’s rivals will also be affected, the increased production costs could slow down Reebok’s efforts to catch up.
Stephen Curry’s Under Armour brand, which launched the popular Curry sneaker line in 2020, is in a similar position. Curry’s brand has been attempting to replicate the success of Jordan’s empire, but the new tariffs could raise production costs and make it harder for Curry’s line to thrive.
Dwyane Wade’s Li-Ning Partnership Faces New Hurdles
Dwyane Wade, who signed a 10-year deal with Chinese company Li-Ning in 2012, also faces uncertainty. Wade’s Way of Wade sneaker line has become popular, but with import costs rising, his business could struggle. Wade, who owns an equity stake in Li-Ning, has worked to build a brand that rivals the likes of Jordan Brand. However, the new tariffs could hinder his efforts and increase costs for consumers.
Tariffs: A Threat to Multi-Million Dollar Empires
These athletes have created multi-million dollar businesses through their sneaker brands, but now, these empires could be at the mercy of a policy decision. The situation is particularly challenging for Jordan Brand, which faces the added pressure of high tariffs and other challenges, including concerns over customs profiling.
