One company is already responding to President-elect Trump's proposed tariffs, which could face consequences if implemented Higher prices for American consumers Since retailers pass on the additional cost of imports to customers.
Shoe manufacturing company Steve Madden says that it plans to import less goods made in China into America and replace them with goods made in other countries.
The company said on an earnings call with analysts Thursday that plans to reduce its dependence on China and diversify its imports have been in the works for some time.
“We are planning for a possible scenario in which we would have to move goods out of China more quickly,” CEO Edward Rosenfeld said during a Thursday call. “We have worked hard over a period of several years to develop our factory base and our sourcing capability in alternative countries such as Cambodia, Vietnam, Mexico, Brazil etc.”
The company began implementing the plan on Wednesday, Rosenfeld said. Currently, more than 70% of Steve Madden US imports come from China. Rosenfeld's goal is to reduce that figure from a target of 10% to 40%-45%.
Trump has proposed a 60% tax on imports from China, as well as a universal tariff of 10%-20% on imports from all foreign countries.
If the proposed tariffs on imports are imposed, consumers could pay $6.4 billion to $10.7 billion more for footwear, according to a new analysis From the National Retail Federation. The organization estimates that implementation of the tariffs could cost Americans $46 billion to $78 billion in spending power each year.