Some companies have already responded to President-elect Trump’s tariff proposals and could be subject to the next round of tariffs if they go into effect. Higher price for American consumers This is because retailers pass on the additional costs of importing to shoppers.
Shoe maker Steve Madden says he plans to reduce imports of Chinese-made goods into the United States and replace them with goods made in other countries.
Plans to reduce dependence on China and diversify imports have been under consideration for some time, the company said in an earnings call with analysts on Thursday.
“We have been planning for potential scenarios where we need to move goods out of China more quickly,” Chief Executive Officer Edward Rosenfeld said on a conference call Thursday. “We have worked hard over several years to develop our factory base and sourcing capabilities in alternative countries such as Cambodia, Vietnam, Mexico and Brazil.”
Rosenfeld said the company began implementing the plan on Wednesday. Currently, more than 70% of Steve Madden US’s imports come from China. Rosenfeld aims to reduce that number by 40% to 45% from the 10% goal.
President Trump has proposed imposing a 60% tariff on imports from China and a universal tariff of 10% to 20% on all foreign imports.
Consumers could end up paying between $6.4 billion and $10.7 billion more on footwear if the proposed import tariffs are imposed, according to a new analysis from the National Retail Federation. The organization also estimates that Americans could lose between $46 billion and $78 billion in purchasing power each year if the tariffs were implemented.
