Griffin Goyette
On August 23, 2019 president Donald Trump released a tariff on most imported goods from China. This Tariff did no include sneakers along with most clothes imported from China, but around the same time, this tariff was released Trump proposed another 10% increase on this tariff that would affect all imported goods from China. This means there would be a 25% tariff on all imported goods from China including sneakers. This new 25% tariff would increase the retail price of most sneakers which can affect the secondary sneaker market and the resale value of sneakers. The Secondary sneaker market is when people purchase limited shoes and resell them for more than the retail price.
https://www.americanactionforum.org/research/the-total-cost-of-trumps-new-tariffs/
The 15% tariff that is in place has already affected the secondary sneaker market even though this tariff doesn't tax the import of sneakers. The secondary market has seen a spike in a handful of shoes that are released only in China. For example, Jordan 1 not for resell which released only in New York and China on its original release date had an almost 400$ price jump since the tariff. Currently, there isn’t really a solution to how the tariff is affecting the secondary shoe market but if the spikes in price continue it could lead to a lot of shoes sitting at prices people cant afford causing the secondary market to either freeze or collapse. Many shoe enthusiasts say that after a while the prices will return to normal but is that really going to be the case?
Sources:
https://www.complex.com/sneakers/2019/05/how-president-trumps-new-chinese-import-tariffs-could-affect-the-sneaker-world
https://footwearnews.com/2019/business/retail/trump-china-tariffs-sneaker-prices-1202784401/
https://www.youtube.com/watch?v=S7sFWEJuCYU
Secondary sneaker market it a big thing that some of us didn’t even know about so this blog was very helpful in learning the secondary shoe market’s impact on the tariff, so this also is a big deal to people who invested in shoes to make a profit for rare shoes, but what if someone was to take advantage of this for the price expectations/government policies on a demand curve because it would make a new line and so if people still wanted these rare shoes then they would be offered at a higher price then before but it also does change the quantity supplied because usually when a secondary shoe market buyer buys a shoe from a secondary shoe market seller then the buyer isn’t going to sell it for a cheaper price so the buyer would most likely keep the shoe right.
ReplyDeleteIt is very interesting to see how this tariff effects the demand of a product to make it jump up so high. Without this tariff the shoe would not be as rare and this would cause for the demand for the shoe to go down but since this tariff is so much and makes it more expensive more people want the shoe after the release because of how exclusive it now is.
ReplyDeleteThis is very interesting because before reading this I had no idea why reselling shoes was so popular. Now it makes sense, the amount of profit that a person can make is actually insane. I’ve of people who buy a pair of shoes for a couple of hundred dollars and end with thousands of dollars in profit. This is because they end up selling that shoe for more than %400 their original prize. This makes me very interested in this industry, and even more with this new tariff.
ReplyDeleteI knew that reselling shoes was so popular. There are many people that buy shoes lets say for $100, they would sell it lets say $150. They need to make profit off of selling the shoes again so they sell them for more for what they bought them for. Without the tariff on the shoe, the old Jordans someone gets or just rare basketball shoes wouldn't be so expensive. I did have no idea that there was such thing called tariff, so reading this blog post really educated me.
ReplyDeleteThis secondary market up rise in price won't only affect the direct market but the amount of shoes that these enthusiast are gonna be able to have. Do you think that if the prices don't drop back down that it will possibly the end to the resell part of the shoe market?
ReplyDeleteI knew that the tariffs the Trump administration has put on most imported goods affected the price of those goods, but I never really thought about the effect of the tariffs on that market. I find it really interesting that the tariffs are having a large effect on the secondary shoe market because the retail price is rising, which is causing the price of the same sneaker to be larger in the secondary market. Before reading this post, I didn’t even know about the secondary shoe market, unless it’s the same as the second hand market. I also have to disagree with the shoe enthusiasts. Tariffs cause international companies to raise their prices to make up for the increased cost of importing the goods, and because of that some domestic companies don’t have to decrease their prices because of the increased competition, and this causes prices to stay high.
ReplyDeleteWhat if the shoe resell game doesn't come back down, But instead makes a higher more valuable market for limited addition shoes. Could this mean more money for the us in the long run. We would profit more taxes and in the end maybe reduce the tariffs once again.
ReplyDelete