Steve Madden is reorienting its global supply chain to reduce dependence on China as the US prepares for potential tariff hikes under a new presidential administration. The company aims to cut imports from China by 40% to 45% over the next year, according to CEO Edward Rosenfeld.
Currently, China accounts for 70% of Steve Madden’s Chinese-made goods, which constitute two-thirds of its overall business. In response, the apparel manufacturer and retailer plans to diversify sourcing to countries like Cambodia, Vietnam, Mexico, and Brazil.
This shift comes as several US-based manufacturers and retailers are moving away from China due to increasing tariffs on Chinese products. The Biden-Harris administration recently finalized heightened tariffs on China-made goods, while Donald Trump has proposed significant duties increases during his campaign.
While the specifics of the incoming administration’s trade policy remain uncertain, CEO Rosenfeld expects “wide-ranging implications” for global supply chains and economies.
Source: https://www.supplychaindive.com/news/steve-madden-slashes-china-sourcing-avoid-tariffs/732583