The shoe sector has faced a tough period since the pandemic began. A drop in fashion spending, driven by pauses in social life, hit sales hard. Add higher energy costs and pricier raw materials, plus tariff threats, and the impact intensified with several order cancellations from the United States. Yet signs of recovery appeared. As restrictions eased, business activity gradually picked up. Exports to the United States, a key market, restarted, and expenses finally began to ease. This year, sales to the main non-EU market rose by about 25%, a momentum tied to ongoing shipping bottlenecks between Asia and North America that continue to complicate logistics.
The situation wasn’t simply about footwear; it also touched on a heated topic known as the Google Tax. Washington proposed a 25% tariff on shoes from Spain in this sector, stacking on top of an existing 10% duty to total 35%. The move triggered immediate consequences, with as much as 30% of orders canceled last spring and fears about the survival of several companies, particularly those based in the Elda region whose primary market is the United States.
After extensive talks and industry pressure, a compromise was reached last October. Spain, France, Italy, Austria, and the United Kingdom would continue applying the rate that large multinational tech firms face. By 2023, a global minimum corporate tax rate within the OECD framework would replace this arrangement. The deal prompted the United States to suspend any tariff increases to support shoe manufacturers.
What were the outcomes? Marián Cano, president of the Valencian Footwear Entrepreneurs Association (Avecal), notes that in the first quarter of the year, exports from the European Community to the United States, mainly from Alicante, rose by 25% year over year, reaching 34.3 million euros. The sentiment remains optimistic, with hope that this ascent will continue in the coming months.
Google tax deal frees shoes from tariffs in the US
A second factor helping the rebound is the slower flow of sea shipments from Asia, a central hub for shoe production, as Covid-related disruptions persist. This shift has nudged the United States to consider additional suppliers. Yet Cano emphasizes the significance of the restored trade channel, noting that it places footwear exports just behind Italy, France, and Germany as a major focus outside the European Union.
Manuel Román, president of the Spanish Shoe Components Association (AEC), stresses that the feared downturn did not materialize and commercial activity can resume. Manuel Ruiz, head of Manufacturas Newman in Elche, echoes the sentiment, saying the agreement has stabilized the market. Meanwhile, Pikolinos from Elche highlights that the crisis hardly affected their operations thanks to a North American logistics hub on their side. The trend in demand in the United States shows a clear rebound and a steadily recovering market.