Following President-elect Donald Trump’s win over Vice President Kamala Harris in the 2024 presidential vote, businesses are making plans to relocate manufacturing out of China.
According to Bloomberg, Trump has indicated that he may put a 60 % tariff on goods imported from China, as well as a 10 % or 20 % tariff on goods imported from other countries. According to Bloomberg, Trump’s program to impose tariffs on products produced outside the United States is intended to encourage businesses to do so instead of relying on cheap goods and work from nations like China.
Steve Madden’s CEO Edward Rosenfeld announced to Wall Street analysts on Thursday that the$ 3 billion shoe company would be gradually reducing its production in China to avoid potential Trump tariffs on imported goods after winning early on Wednesday morning. In order to prepare for the Republican nominee’s win, Madden informed experts that the company had already made plans to reduce its production there.
According to Rosenfeld,” we have been anticipating a situation where we might need to shift items out of China more quickly.” ” And but, as of yesterday morning, we are putting that strategy into action. And you should anticipate a decrease in the amount of items we sourced from China over time.
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Steve Madden is now anticipated to reduce the number of Chinese-made goods by 40 % over the next year, in stark contrast to the previous goal of a 10 % reduction in Chinese-made goods.
Rosenfeld continued,” If we are considering a new plan that places important tariffs on China, it will have a variety of wide-ranging effects on both the supply chain and the economy as a whole.”
The CEO of Steve Madden stated that the company would only be “looking at just over a quarter of our business that would be subject to potential tariffs on Chinese goods” if it were able to achieve its goal of a 40 % reduction in the amount of goods produced in China.
Church & Dwight Company’s production in China, including its Water Pik oral care range, has already been reduced, according to Bloomberg. Church & Dwight Company CFO Rick Dierker remarked about the possibility of more tariffs:” There are plans in place and steps that we’ve taken to reduce that effect. Just like everybody, we’re also mindful of implications it”.
