Global Footwear Manufacturing in 2025

The Silent Crisis: Tariffs Are Eating Your Margins. Automation Is the Only Escape.

“When every second on the production line costs $0.01 in tariffs, the real battle shifts from labor costs to material efficiency and machine precision.”

Vietnam’s 20% tariffs. Indonesia’s 19%. Cambodia’s reprieve at 19% after brutal negotiations5. For factories, this isn’t policy—it’s survival arithmetic. Deckers absorbs $185M in tariff hits2; Nike bleeds $1B annually2. Meanwhile, India’s $0.9/hour labor lures brands—but without automation, low wages can’t offset 26% U.S. duties