NEW YORK — The footwear company Steve Madden is planning to reduce its imports from China by as much as 45% next year in anticipation of hefty tariffs that President-elect Donald Trump has proposed on foreign goods.
The brand, which is particularly popular among teenagers for its stylish shoes, revealed this strategy during its earnings call on Thursday. Over the past few years, Steve Madden has been actively developing a network of factories in countries such as Cambodia, Vietnam, Mexico, and Brazil, preparing for a shift away from reliance on Chinese manufacturing. Industry analysts predict that many other businesses may feel compelled to follow Steve Madden’s lead and relocate their production in response to similar economic pressures.
During Trump’s initial term, he enacted tariffs targeting various imported goods, including solar panels, steel, aluminum, and a broad range of products from China. Now, however, he proposes to impose an even more substantial 60% tariff specifically on Chinese goods, along with tariffs that could reach up to 20% on other imports coming into the United States.
In discussing the company’s proactive measures, Steve Madden’s CEO, Edward Rosenfeld, informed analysts that they have been strategizing for this scenario for some time. “As of yesterday morning, we are putting that plan into execution,” he noted.
Rosenfeld emphasized that around two-thirds of Steve Madden’s overall business is derived from U.S. imports, with over 70% of those products originating from China. The company’s objective is to ensure that only about a quarter of its operations would be subjected to the new tariffs on Chinese imports. For the year 2023, Steve Madden reported sales of approximately $2 billion.
The National Retail Federation, the largest trade organization for retailers in the U.S., has expressed strong opposition to Trump’s tariff proposals. Last week, they highlighted that tariffs on just six categories of products—clothing, toys, furniture, household appliances, footwear, and travel goods—could diminish American consumers’ purchasing power by between $46 billion and $78 billion annually while these tariffs are enforced. A study conducted by Trade Partnership Worldwide LLC, an economic research entity, supported these assertions, showcasing direct impacts on product pricing.
For instance, the report suggested that an $80 pair of men’s jeans could see a price increase to between $90 and $96, while a $100 coat might escalate in cost to somewhere between $112 and $121.