Forget tariffs this U.S. shoe company vows not to hike its prices

Published: Friday, May 9, 2025 at 9:00 am

Keen Shoes Stands Firm: No Price Hikes Despite Tariff Troubles

Amidst rising U.S. tariffs and potential price increases across the footwear industry, Keen, a Portland, Oregon-based shoe company, is making a bold promise: **no price hikes for consumers this year.** This commitment comes despite the company's exposure to tariffs, a result of President Trump's trade policies.

Keen's strategy is rooted in long-term planning. Recognizing the risks of relying heavily on a single country, particularly China, Keen has spent over a decade diversifying its supply chain. This proactive approach includes manufacturing facilities in the U.S., the Dominican Republic, and Thailand, as well as partnerships in Cambodia, India, and Vietnam. While these countries also face new U.S. tariffs, Keen's diversified sourcing strategy allows them to mitigate the impact compared to companies heavily reliant on Chinese manufacturing.

The footwear industry is particularly vulnerable to these trade disruptions. A TD Cowen analysis reveals that 36% of imported footwear sold in the U.S. originates from China. Experts like Jason Judd from Cornell University's Global Labor Institute predict significant price increases for footwear and apparel, potentially costing U.S. families an additional $1,100 annually in the short term. Adidas has already warned of price increases, and many retailers are implementing "tariff surcharges."

Keen's COO, Hari Perumal, emphasizes that their preparedness and collaborative approach with manufacturing partners are key to maintaining stable prices. They are sharing the cost burden across their supply chain, from partners to material suppliers. This proactive approach allows Keen to absorb some of the tariff costs, shielding consumers from price increases.

BNN's Perspective: While Keen's commitment to keeping prices stable is commendable, it's important to acknowledge the broader economic implications of tariffs. While diversification is a smart business move, the long-term effects of trade wars on consumers and the global economy remain uncertain. A balanced approach that considers both domestic manufacturing and international trade is crucial for sustainable economic growth.

Keywords: Keen shoes, tariffs, price hikes, footwear industry, supply chain, manufacturing, China, trade war, President Trump, consumer prices, Portland Oregon, Adidas, import taxes, diversification, global trade, economic impact, U.S. tariffs, shoe prices, apparel prices

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