With President-elect Trump’s tariffs on the horizon, footwear company Steve Madden is already adjusting its strategy to reduce reliance on Chinese manufacturing.
Less than two days after Trump’s win, CEO Edward Rosenfeld revealed that the company has put a “plan into motion” to cut its Chinese sourcing by as much as 45%. “You should expect to see the percentage of goods that we source from China to begin to come down more rapidly going forward,” Rosenfeld stated.
The company aims to shift production to other countries, including Brazil, Mexico, Vietnam, and Cambodia, diversifying its operations to mitigate the impact of potential tariffs.
One executive noted that “just under half of our current business would be potentially subject to tariffs on Chinese imports (if Trump decides to impose tariffs when he takes office in January).” The company’s goal, they added, is to “reduce the percentage of goods we source from China by approximately 40% to 45%” in the coming year.
Trump has emphasized tariffs as a tool for negotiation, suggesting that they would act as leverage in trade discussions rather than simply a punishment. Speaking with Maria Bartiromo, he also floated the idea of a 200% tax on vehicles from Mexico, illustrating the strong stance he might take to pressure other countries into more favorable trade practices.
Economic analyst John Lonski supported this approach, saying, “He’s going to go to China and say, ‘Listen, unless you make some changes in your trade practices, unless you become less belligerent, you are going to be facing higher tariffs.'”
Lonski argued for the strategic use of tariffs to protect industries essential to national security, stating, “As far as the United States economy is concerned, it’s absolutely madness if we don’t take steps to protect industries that are vital to national security.”
