The United States placed Huawei Technologies Co Ltd on a trade blacklist last week, effectively banning U.S. firms from doing business with the world's largest telecoms network gear maker and escalating a trade battle between the world's two biggest economies.
"Huawei will be working closely with the Chinese government to get the U.S. to back down", says Kevin Dowd, a British professor of finance and economics.
However, the shoemakers and retailers say that while they have been moving their sourcing away from China: "Footwear is a very capital-intensive industry, with years of planning required to make sourcing decisions, and companies can not simply move factories to adjust to these changes".
Speaking to reporters Thursday, Trump suggested that he might be willing to make the embattled Chinese telecommunications giant Huawei part of the trade talks with China.
The Commerce Department action last week requires American suppliers of Huawei, a crown jewel of Chinese manufacturing, to seek USA government permission to do business with the company.
In an interview on CNBC, Pompeo stressed that there are two separate elements: "the national security component" and efforts "to create a fair reciprocal balanced trade relationship between the two countries".
The US disrupted a trade truce - concluded by Washington and Beijing in December 2018 - on 10 May after the Sino-American trade negotiations stalled.
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"That's just false. To say that they don't work with the Chinese government is a false statement". But right now a lot of companies are moving out of China because of the tax.
"It is time to bring this trade war to an end", the firms urged.
Trump increased levies on US$200 billion in Chinese imports to 25 per cent from 10 per cent, prompting retaliation from Beijing.
The bill is aimed at preventing "companies subject to extra-judicial directions of a foreign adversary to infiltrate our nation's communications networks", said Democratic Senator Mark Warner. "The Huawei CEO on that at least isn't telling the American people the truth, nor the world", Mr Pompeo said.
Japan's Panasonic was the latest to announce it would suspend transactions with Huawei. Washington also wants curbs on subsidies for Chinese state-owned enterprises and better access for USA firms in Chinese markets. As a result, USA allies and their companies increasingly have put cooperation with the company on hold. The move could cripple Huawei, the world's largest manufacturer of networking gear and second-biggest smartphone maker.
His administration last week put Huawei, which it has called a threat to national security, on a blacklist that effectively barred US firms from selling the Chinese company computer chips and other components without government approval.
The Commerce Department also announced a ban on USA companies selling or transferring technology to Huawei, though it later issued a 90-day reprieve.
While Huawei's domestic sales are unlikely to plummet, the company's global business operations could be severely hit, the observers say.
Huawei has since indicated that it could roll out its own mobile operating system this year in China and internationally next year.