The U.S. had imposed tariffs on Chinese goods as part of the escalating trade war dispute, which are set to be put into effect on this Sunday, 15th December. SG Companies suffered in the beginning of the 2000s and continue to be on the receiving end due to the trade war. 

SG Companies were founded around 125 years ago, specialising in footwear. But the family owned business, which designs its shoes in China, will now have an added 15% tax on the shoes it designs. SG’s products are usually sold from other U.S. retailers, such as Walmart. 

Sunday’s planned next round of tariffs will be a 15% on about $160 billion in Chinese exports to the U.S. The goods targeted this round are consumer goods, including smart phones, make-up brushes, children's books, and clothing.

The trade war has been going on for over a year and has seen extra duties imposed on more than $450bn worth of each other's exports. 

Matt Feiner, SG Companies’ chief executive expressed that the situation is does not favour the business. He said, “There's really no way that we could digest all of those costs. It is very scary.” The business currently employs around 100 people, and risks stopping production if a trade deal is not agreed soon. 

Footwear production is a huge in China, with over 70% of shoes sold from U.S. shops made in China. If the tariffs planned move forward, an extra $4 billion could be spent by American consumers for footwear, the Footwear Distributors and Retailers of America stated. 

The Association’s president, Matt Priest, exclaimed “Tariffs are taxes. This move will noticeably raise the cost of shoes at retail and will have a chilling effect on hiring in the footwear industry.” 

Feiner added on saying, “I wish I could tell you I was spending more time creating break-through product ideas... and figuring out the way to bring them to life. Unfortunately, we... have been spending much more of our time working through this issue."

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