Most shoes on U.S. shelves—nearly 99%—come from overseas. So when prices spike, it’s easy to blame inflation or brands. But trade tensions and rising tariffs are now the hidden forces driving up costs.
A recent survey found 78% of Americans have delayed buying shoes because of high prices. That’s why one major brand’s decision to expand U.S. manufacturing without raising prices is causing a stir. As most companies pass costs onto consumers, this brand is taking a different path, one that may reshape the industry’s future. What’s behind this surprising decision, and could others follow?
Let’s unpack what’s really going on.
Why Almost Every Shoe Is Still Made Overseas
Decades of offshoring gutted America’s once-robust shoe industry. Now, less than 1% of shoes sold in the U.S. are made domestically. As tariffs on imports from Vietnam, Indonesia, and China have gone up, footwear companies face serious pressure.
The Footwear Distributors and Retailers of America warns that rising prices could lead to store closures and unaffordable shoes for many families. That’s what makes this brand’s reshoring effort so unusual: it offers not only economic hope but a real-time example of how manufacturing might begin to return to American soil.
How the U.S. Lost Its Footwear Factories
Once a powerhouse of shoemaking, the U.S. saw its industry decline rapidly after the 1970s. By the 2000s, domestic shoe production had become a rarity. From 2001 to 2022, the number of American employees in footwear manufacturing declined by over 56%.
Even New Balance, one of the few to maintain U.S. factories, has publicly acknowledged difficulties in recruiting skilled shoemakers as the older generation retires and the domestic supply chain has withered. The result? A significant skills gap for brands considering a return to American manufacturing.
This loss impacted not just jobs but entire communities, and rebuilding it won’t be easy. But the recent shifts suggest some companies are ready to take on the challenge.
Trade Wars Are Reshaping Shoe Industry Math
Even with recent tariff reductions on Chinese imports, down 30% following the Geneva meeting, footwear brands remain on edge. Volatile trade policy has forced companies into tough decisions: absorb prior cost hikes, rework supply chains, or risk alienating price-sensitive consumers.
A 2025 survey shows athletic shoe sales are projected to decline for the first time in years, and 59% of shoppers now say they’ll only buy shoes on sale. While some brands adapt with long-term strategies, others remain exposed to unpredictable shifts in global trade, revealing just how fragile traditional sourcing models have become.
So, Who’s Bringing Shoe Jobs Back to the U.S.?
Keen, the Oregon-based footwear company, is taking a bold step: opening a new factory in Kentucky while vowing not to raise prices through 2025. “Keen will not implement any tariff-related price increases for the remainder of 2025,” wrote founder Rory Fuerst. It’s a move made possible by a decade of investment in supply chain diversity and U.S. production.
While competitors race to adapt, Keen is leaning into its strategy, showing how long-term planning can offer stability in volatile times. The new plant opens in June, and all eyes are on whether the model can hold.
Why Keen Moved Its Factory From Portland to Kentucky
Keen’s new Kentucky facility isn’t just about jobs, its logistics strategy in action. Located near its existing distribution center, the site puts the company within a two-day drive of 80% of Americans. That means faster shipping, lower emissions, and tighter supply control. Portland workers voiced disappointment online, but COO Hari Perumal explained: “Our distribution center is already in Kentucky,” making the shift both efficient and essential.
While one region says goodbye, another gains a new hub of skilled jobs and advanced manufacturing, all in service of a more streamlined U.S.-based supply chain.
Bringing Factories Back Won’t Bring Back All the Jobs
Many Americans want manufacturing to return—but what if the jobs don’t follow?
Making shoes in America isn’t easy, or cheap. “Footwear is a very labor-intensive product to make,” Perumal says. “It’s 10 to 12 times more expensive to hire workers in the U.S. than in factories overseas.”
To bridge the gap, Keen is heavily automating the new factory. Bright orange robots now load boot parts, reducing headcount to just 24 skilled workers at launch.
But the supply chain remains a hurdle. “All that’s needed to make the shoes is outside the U.S. right now,” Perumal notes. After four decades of global outsourcing, rebuilding domestic infrastructure will take serious time, and commitment.
Keen Isn’t Alone—Other Brands Are Making the Leap
Keen’s move is bold, but it’s part of a growing trend. New Balance recently invested $70 million in a new Londonderry, New Hampshire factory, bringing 150 jobs to the area. Adidas, too, has tested “Speedfactories” powered by automation. Brands are increasingly betting on “Made in USA” for its marketing appeal, especially for premium, heritage, or work boot styles. Yet Keen’s standout trait is its price stability.
While competitors brace for cost hikes, Keen shows what’s possible with forward-thinking supply planning and domestic production, an edge in a hyper-competitive, cost-sensitive market.
Shoppers Want It All—But What Matters Most?
Consumers today are walking a fine line: they want affordability and American-made quality. According to the 2025 AlixPartners U.S. Footwear Survey, price sensitivity is at a historic high. Yet demand for U.S.-built shoes is also rising fast. “We have seen a huge surge in the request for American-built products,” says Perumal. The contradiction is clear, and complicated. Buyers now expect transparency, sustainability, and domestic jobs without higher prices.
For brands, the path forward lies in shortening supply chains and investing in automation, while staying deeply attuned to what buyers are really willing to pay for.
Could This Be the Moment U.S. Shoe Making Returns?
Keen’s Kentucky factory may mark a turning point, or a cautionary tale. The model it represents, reshoring, automation, and price discipline, offers a possible roadmap for others. But steep obstacles remain: labor shortages, missing supply networks, and wages that may not attract the numbers needed.
“If you have 4% unemployment in the U.S.,” asks Perumal, “are we going to find 20,000 or 40,000 people that want to work for shoe company wages here?” The answer could shape the future of American manufacturing. For consumers, the question is personal: can their values and budgets finally align?
Discover more DIY hacks and style inspo- Follow us to keep the glow-up coming to your feed!
Love content like this? Tap Follow at the top of the page to stay in the loop with the latest beauty trends, DIY tips, and style inspo. Don’t forget to share your thoughts in the comments — we love hearing from you!