Steve Madden, a US-based shoe brand, plans to reduce its imports from China by as much as 45% over the next year in anticipation of steep tariffs under President-elect Donald Trump’s policies.
In an earnings call, CEO Edward Rosenfeld stated that the company has been diversifying its sourcing beyond China due to labor shortages and supply chain disruptions. However, with the imposition of tariffs on Chinese imports, the brand will now accelerate this process.
According to Rosenfeld, approximately 70% of Steve Madden’s US imports come from China, putting about half of its business at risk of tariffs. To mitigate this, the company aims to reduce its reliance on Chinese imports by around 40-45%.
This move comes as other retailers and brands have already begun diversifying their sourcing in response to tariff risks, labor shortages, and supply chain disruptions.
Tariffs imposed under Trump’s policies could lead to price increases for US consumers, according to retail analysts. Other companies, such as E.l.f. Beauty and Tapestry, are also adapting to the changing trade landscape, with some already moving production outside of China.
Source: https://www.cnbc.com/2024/11/07/steve-madden-to-slash-china-sourcing-as-trumps-tariff-plan-looms.html