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Less than 48 hours after President-elect Donald Trump’s landslide Election Day victory was confirmed, trendy shoe company Steve Madden has announced it will start moving its manufacturing out of China.
From CNBC: Steve Madden said Thursday that it will slash the goods it imports from China by as much as 45% over the next year as it braces for President-elect Donald Trump to carry out his pledge for steep tariffs on imports from other countries.
On an earnings call, CEO Edward Rosenfeld said the shoe brand has been “planning for a potential scenario in which we would have to move goods out of China more quickly.” Over the past few years, he said, it’s looked for factories in other countries, including Cambodia, Vietnam, Mexico and Brazil.
“As of yesterday morning, we are putting that plan into motion,” he said Thursday. “And you should expect to see the percentage of goods that we sourced from China to begin to come down more rapidly going forward.”
Rosenfeld said imports to the U.S. account for about two-thirds of Steve Madden’s business. Of that, he said, “we currently source a little bit more than 70% of those goods from China.” That means slightly less than half of its business would be at risk of tariffs on Chinese imports, he said.
Rosenfeld explained, “Our goal over the next year is to reduce that percentage of goods that we sourced from China by approximately 40% to 45%, which means that if we’re able to achieve that and we think we have the plan to do it, that a year from today, we would be looking at just over a quarter of our business that would be subject to potential tariffs on Chinese goods.”
According to multiple reports, Steve Madden is a $3 billion shoe company who also sells purses and other accessories.
Trump is using the threat of tariffs to pressure more companies to move their manufacturing back to the United States and hire Americans, instead of using foreign labor.
BREAKING: @SteveMadden to slash China sourcing by as much as 45%
“On an earnings call, CEO Edward Rosenfeld said the shoe brand has been ‘planning for a potential scenario in which we would have to move goods out of China more quickly.’” https://t.co/ELVmgieFVs
— Select Committee on the Chinese Communist Party (@committeeonccp) November 8, 2024
Author Ann Coulter lamented, “Unfortunately, he’s moving production to “places like Cambodia, Vietnam, Brazil and Mexico.” That doesn’t help American workers.”
Lawyer David Norris replied, “It does make us less dependent on China though. It diversifies the supply chain, which is still good.”
It does make us less dependent on China though. It diversifies the supply chain, which is still good.
— David Norris (@cdavidnorris) November 8, 2024
NEWS:
Steve Madden said Thursday that it will slash the goods it imports from China by as much as 45% over the next year as it braces for President-elect Donald Trump to carry out his pledge for steep tariffs on imports from other countries.
“As of yesterday morning, we are… pic.twitter.com/Hkb9XEhssP
— Ryan Saavedra (@RealSaavedra) November 7, 2024
Worried by the prospect of #Trump #tariffs, #SteveMadden is moving even more production from #China: https://t.co/OI2N1JpkLQ.
— Gordon G. Chang (@GordonGChang) November 8, 2024
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