10 November 2024 10:10 am Views - 93
CBC News - One company is already responding to President-elect Trump's proposed tariffs, which could result in higher prices for American consumers if retailers pass along added costs to shoppers.
Shoemaker Steve Madden says it plans to import fewer goods made in China to the U.S., and replace them with items made in other countries.
The company told analysts on an earnings call Thursday that the plan to reduce its reliance on China and diversify its imports has been in the works for some time.
"We have been planning for a potential scenario in which we would have to move goods out of China more quickly," CEO Edward Rosenfeld told analysts on the call. "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."
The company started implementing the plan Wednesday, Rosenfeld said. Currently, more than 70% of Steve Madden U.S.'s imports are from China. Rosenfeld aims to cut that figure by 40%-45%, up from a target of 10%.
Trump has proposed a 60% tax on imports from China, plus a universal tariff of 10%-20% on imports from all foreign countries.
If imposed, the proposed tariffs on imports could lead to consumers paying $6.4 billion to $10.7 billion more for footwear, according to a new analysis from the National Retail Federation. Americans could also lose between $46 billion to $78 billion in spending power each year the tariffs are in place, the organization estimates.