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The
company, known for its trendy footwear for teens, announced the
moves during its earnings call Thursday, and said it had already
been developing a factory network in Cambodia, Vietnam, Mexico
and Brazil for several years. Analysts have predicted that other
companies will be feeling more pressure to move more goods out
of China and will be following suit.
During his first term, Trump imposed tariffs that targeted
imported solar panels, steel, aluminum and pretty much
everything from China. But this time, he has gone much further
and has proposed a 60% tariff on goods from China — and a tariff
of up to 20% on everything else the United States imports.
“We have been planning for a potential scenario in which we
would have to move goods out of China more quickly,” Steve
Madden's CEO Edward Rosenfeld told analysts during an earnings
call Thursday. "And so, as of yesterday morning, we are putting
that plan into motion."
Rosenfeld noted that U.S imports account for about two-thirds of
its overall business. Of that percentage, a little more than 70%
of those goods are from China. The company's goal is to have
just roughly one-quarter of its business be subject to potential
tariffs on Chinese goods, he said. The New York-based company
generated sales of roughly $2 billion in calendar year 2023.
The National Retail Federation, the nation's largest retail
trade group, has been critical of Trump's proposal and said last
week that proposed tariffs on six product categories alone —
clothing, toys, furniture, household appliances, footwear and
travel goods — would reduce American consumers’ spending power
by $46 billion to $78 billion every year the tariffs are in
place, according to a study commissioned by the group and
prepared by Trade Partnership Worldwide LLC, an economic
research firm.
For example, an $80 pair of men’s jeans would cost $90 to $96,
while a $100 coat would cost $112 to $121, the study said.
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