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How difficult is it to change course while shod in a pair of chunky platform heels?
Well, if “change course” involves overhauling supply chains in order to avoid promised tariffs on Chinese goods, footwear designer Steve Madden makes it look easy—putting into motion overnight a plan that was the result of years of planning.
Just two days after the Nov. 5 election in which former President Donald Trump regained the White House, Steve Madden CEO Edward Rosenfeld told investors the company will soon source a good portion of the products it now gets from China from other countries.
“We've worked hard over a multiyear period to develop our factory base and our sourcing capability in alternative countries like Cambodia, Vietnam, Mexico, Brazil, etc.,” Rosenfeld said during an earnings call on Nov. 7. “As of yesterday morning, we are putting that plan into motion and you should expect to see the percentage of goods that we source from China to begin to come down more rapidly going forward.”
Imports make up about two-thirds of Steven Madden’s business, according to Rosenfeld. About 70% of imported goods are from China, meaning “just under half of our current business would be potentially subject to tariffs on Chinese imports,” he said. The company aims to make that number of goods subject to potential tariffs closer to around 25% over the next year.
Trump has said he’d impose tariffs of up to 20% on imported goods across the board, and tariffs of 60% on goods from China. He’s even threatened to enact tariffs as a punishment against individual companies. Trump warned of a 200% tariff on John Deere in response to its plans to move some work to Mexico, PBS News reported.