Steve Madden Ltd. is accelerating its plans to shift production out of China, following Donald Trump’s victory in the US presidential elections.
According to a report published by Bloomberg, the decision came in anticipation of the possibility of increasing customs duties on imported goods between the two countries.
The popular shoe retailer aims to cut the volume of goods manufactured in China by 40 percent over the next year, up from its previous target of a 10 percent cut.
“As of yesterday morning, we are putting that plan into action,” CEO Edward Rosenfeld told analysts on an earnings call Thursday.
Consumer companies are racing to get ahead of potential tariffs between Washington and Beijing, warning of the impact they could have on prices of everyday products.
Trump has threatened to impose tariffs of 60 percent on goods imported from China, and up to 20 percent on goods from other countries, to encourage more domestic manufacturing.
According to Bloomberg, US-based companies have long relied on Chinese factories because they can produce goods at a lower cost.
“If we were to consider a new policy that would include significant tariffs on China, it would have all sorts of far-reaching consequences not just in the supply chain, but the economy in general,” Rosenfeld told analysts.
