Shoe giant Steve Madden has made a bold move, announcing plans to reduce its reliance on Chinese imports by nearly half over the next year.
This decision came on the heels of President-elect Donald Trump’s victory, alongside his campaign promises to impose new tariffs on Chinese imports that could reach as high as 60%. The change highlights how companies are pivoting to protect their bottom lines amid mounting trade tensions with China.
Steve Madden’s CEO, Edward Rosenfeld, confirmed that the company has been exploring alternative manufacturing locations beyond China. “As of yesterday morning, we are putting that plan into motion,” Rosenfeld shared, explaining the company’s new focus on Brazil, Cambodia, Mexico, and Vietnam.
According to Rosenfeld, about 70% of Steve Madden’s goods are currently produced in China, making the company vulnerable to the looming tariffs. Rosenfeld hopes to reduce Chinese imports by 40–45% within the year, which would mean that only around a quarter of their product lineup would be affected by future U.S.-China tariff policies.
The rationale behind this shift goes beyond mere trade considerations; it reflects the broader and strategic realignment of global supply chains that many companies are now undertaking.
Trump has long advocated for a tougher stance on China, both in terms of trade and geopolitical influence. In recent comments to The Wall Street Journal, he hinted at taking even more aggressive steps if China were to escalate tensions over Taiwan, stating he would impose “150% to 200%” tariffs if necessary.
Trump’s first administration saw the implementation of tariffs on Chinese goods reaching up to 25%, impacting a wide range of industries. The U.S. policy shift caused immediate ripple effects in the Chinese economy, a trend that economists believe will likely intensify with Trump’s new proposed tariffs.
According to Zhu Baoliang, former chief economist of China’s National Development and Reform Commission, a 60% tariff could slash China’s exports by as much as $200 billion, compounding existing economic challenges for Beijing.
China’s economic outlook has already been showing signs of strain. The International Monetary Fund (IMF) predicts a slowdown, with the Chinese economy expected to grow by 4.8% in 2024—near the lower end of Beijing’s target of around 5%. Projections for the following year suggest an even slower growth rate of 4.5%.
In response to Trump’s re-election and the threat of increased tariffs, China’s currency, the yuan, has also felt the impact. As reported by Finimize, the yuan saw a 5% drop during the initial U.S. tariffs in 2018 and dipped an additional 1.5% as trade tensions escalated.