\n\t has a new tariff headache, courtesy of U.S. President Donald J. Trump.<\/p>\n
\n\tTrump early Friday threatened a round of \u201cmassive increase\u201d of tariffs<\/a> on Chinese imports to the U.S., according to a Truth Social post. The new threat centers on a dispute regarding rare earth minerals. Trump says that China<\/a> wants to impose export controls, calling the move \u201cTrade hostility\u201d in the post. Following the close of market Friday Trump made good on that threat. Beginning Nov. 1, the President said the United States would impose a new tariff of 100 percent on imports from China<\/a> \u201cover and above any Tariff that they are currently paying.\u201d<\/p>\n \n\tHe also noted in the Truth Social post that America\u2019s relationship with China over the past six months has been a \u201cvery good one,\u201d saying this new move on trade was a \u201csurprising one.\u201d Trump said he was to meet with China\u2019s President Xi Jinping in two weeks, but now suggest that the meeting might be cancelled.<\/p>\n \n\tTrump\u2019s new threat sent the equity markets reeling on Friday over fears of a new tariff hike. At the close, the Dow Jones Industrial Average fell 878.82 points, or 1.9 percent, while the S&P 500 was down 182.60 points, or 2.7 percent.<\/p>\n \n\tFootwear<\/a> stocks also fell on Friday, joining the overall market decline. Shoe stocks posting the largest declines were Caleres Inc., down 10.7 percent, or $1.42, to $11.85; Genesco Inc., off nearly 7 percent, or $1.95, to $26.08; Allbirds Inc., down 5.8 percent, or 36 cents, to $5.90, Steve Madden Inc., declining 5.1 percent, or $1.74, to $32.25 and Crocs, declining nearly 5 percent, or $3.69, to $76.70. Among the retailers, shares of Shoe Carnival fell 6.8 percent, or $1.36, to $18.59, Academy Sports and Outdoors Inc. was down 6.1 percent, or $3.22, to $49.38, and Dick\u2019s Sporting Goods Inc. declined 5.5 percent, or $12.20, to $211.62.<\/p>\n \n\tThe U.S. and China in August agreed to a second 90-day extension<\/a> for ongoing bilateral trade talks. That gave footwear firms, and even consumers, a bit of breathing room for the holiday season. The first pause began in May. <\/p>\n \n\tUnder the temporary pause, tariffs<\/a> remain at 30 percent, down from 55 percent, but could have risen to as high as 145 percent for some goods if the pause had not been extended. As recently as late last month, one source told Footwear News that talks between the U.S. and other countries \u2014 including China and Vietnam, where much of the footwear industry produces its shoes \u2014 continue to be ongoing. And the thinking was that when the current extension is set to end mid-November, the two countries would agree to yet another 90-day extension. <\/p>\n \n\tWhat happens next is anyone\u2019s guess.<\/p>\n \n\t\u201cThis news poses a significant threat to U.S. retailers and brands that still rely heavily on China for footwear production. China remains a dominant source for shoes imported into the U.S. Any disruption \u2014 whether tariffs, trade tensions, or logistics shocks \u2014 can quickly drive-up costs and create uncertainty for consumers,\u201d said Matt Priest, president and CEO of the Footwear Distributors and Retailers of America.<\/p>\n \n\tPriest emphasized that while shoe firms have \u201clearned from past challenges\u201d and have become more resilient through shifts in their sourcing networks, the footwear supply chains are still highly complex and that china\u2019s scale and efficiency would be difficult to replace.<\/p>\n \n\tSteve Madden Ltd.\u2019s chairman and CEO Edward Rosenfeld noted as much when the company posted second quarter earnings results in July. <\/p>\n \n\tEarlier this year, the company made some quick moves to exit China when Trump got re-elected, knowing that tariffs would be high on his agenda. That shifted for all companies, not just footwear, when Trump disclosed on April 2 that he was implementing reciprocal tariffs<\/a>. <\/p>\n