Edward Rosenfeld, the CEO of Steve Madden, has informed investors that, following Donald Trump’s re-election, the company may cut its imports of items from China by as much as 45 per cent.
During a Q3 earnings call, he made remarks about Trump’s intention to increase taxes on Chinese goods by as much as 100 per cent when the president-elect returns to office.
With facilities in countries like Vietnam, Mexico, and Brazil being considered as possible options, Rosenfeld stated that the footwear firm had been “preparing for a possible scenario in which we would have to move goods out of China more quickly.”
“We are implementing that plan as of yesterday morning [Wednesday, when the presidential race was formally called],” Rosenfeld stated. “And you should anticipate that going forward, the proportion of goods that we sourced from China will start to decline more quickly.”
Approximately two-thirds of Steve Madden’s business is currently derived from imports into the US, with 70 per cent of those imports coming from China. As a result, nearly half of the company’s total product line is at danger of tariff increases.
According to Rosenfeld, he hopes to cut this amount by about 40 to 45 per cent this year, meaning that just 25 per cent of the company will be impacted by the planned Chinese tariffs.
