One company is already responding to President-elect Trump’s proposed tariffs, which, if imposed, could result in… higher prices for American consumers while retailers pass on the extra import costs to shoppers.
Shoemaker Steve Madden says it plans to import fewer goods made in China into the U.S. and replace them with items made in other countries.
The company said during an earnings call with analysts on Thursday that the plan to reduce dependence on China and diversify imports has been in the works for some time.
“We have been preparing for a possible scenario where we would need to move goods out of China more quickly,” CEO Edward Rosenfeld said on Thursday’s call. “We have worked hard over a period of several years to develop our factory base and our sourcing capabilities in alternative countries such as Cambodia, Vietnam, Mexico, Brazil, etc.”
The company began implementing the plan on Wednesday, Rosenfeld said. Currently, more than 70% of Steve Madden’s US imports come from China. Rosenfeld aims to reduce this figure by 40% to 45%, compared to a target of 10%.
Trump has proposed a 60% tax on imports from China, plus a universal tariff of 10% to 20% on imports from all other countries.
If the proposed tariffs are imposed, consumers could pay $6.4 billion to $10.7 billion more for footwear, according to a new analysis from the National Retail Federation. Americans could also lose between $46 billion and $78 billion in purchasing power each year if the tariffs take effect, the organization estimates.
