Steve Madden, a large footwear company, has announced it will significantly reduce its imports from China by up to 45 percent over the next year. This decision follows the re-election of Donald Trump, who has proposed imposing tariffs on Chinese imports as high as 60 percent. Rather than onshoring in the United States, however, Steve Madden CEO Edward Rosenfeld said alternatives such as Brazil, Cambodia, Mexico, and Vietnam are under consideration as sources for the company’s products.
“We have been exploring these alternatives for some time,” Rosenfeld stated, according to CNBC. “As of yesterday morning, we are implementing our plan. You can expect a quicker reduction in the percentage of goods we source from China moving forward.”
He noted that while two-thirds of the company’s business currently relies on imports, 70 percent originates from China.
“Achieving this target would mean that just over a quarter of our business would be affected by potential tariffs on Chinese goods,” Rosenfeld added.
The potential tariff increase is part of Trump’s continued tough stance on China. He recently told The Wall Street Journal that a severe tariff hike would be considered if China invades Taiwan.
Zhu Baoliang, an economist, suggested that a 60 percent tariff could decrease China’s exports by $200 billion.
