Weyco Group Files Lawsuit over $16M Tariffs after 19–50% Cost Surge
Weyco Group filed suit in the U.S. Court of International Trade seeking refunds for roughly $16 million of Trump-era tariffs paid in 2025. The company said new duties inflated product costs by 19–50%, compressed gross margins despite a 10% price hike, and prompted diversification beyond China.
1. Tariff Lawsuit Filed
Weyco Group, parent of Florsheim, filed a lawsuit in the U.S. Court of International Trade under the International Emergency Economic Powers Act seeking refunds for tariffs imposed by recent presidential actions. The company aims to recover approximately $16 million in incremental duties paid during 2025.
2. Financial Impact of Tariffs
CFO Judy Anderson reported that new tariffs drove a 19–50% increase in product costs, which compressed gross margins despite a 10% wholesale price increase effective July 2025. CEO Thomas Florsheim noted that high duties in the second quarter had temporarily rendered trade with China commercially prohibitive.
3. Operational Response and Diversification
To mitigate future risks, Weyco strategically held finished goods overseas and maintained production during peak manufacturing periods, enabling nearly 100% on-time fall 2025 shipments once tariffs eased. The company has also diversified its manufacturing base beyond China to reduce exposure to tariff volatility.