Companies already leaving China to avoid Trump’s tariffs
Companies are making plans to move manufacturing out of China following President-elect Donald Trump’s victory over Vice President Kamala Harris in the 2024 presidential election.
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. Trump’s plan to implement tariffs on goods produced outside the United States is intended to encourage companies to manufacture products in the United States rather than have companies rely on cheap goods and labor from countries like China, according to Bloomberg.
Following Trump’s victory early Wednesday morning, Steve Madden CEO Edward Rosenfeld told Wall Street analysts on Thursday that the $3 billion shoe company would be quickly reducing its production in China to avoid the potential Trump tariffs on imported products. Madden told analysts that the company had already planned to reduce its production in China in anticipation of the Republican candidate’s victory.
“We have been planning for a potential scenario in which we would have to move goods out of China more quickly,” Rosenfeld said. “And so, as of yesterday morning, we are putting that plan into motion. And you should expect to see the percentage of goods that we sourced from China to begin to come down more rapidly going forward.”
According to Bloomberg, Steve Madden is now expected to reduce the number of goods manufactured in China by 40% over the next year, in a sharp contrast from a previous goal of a 10% reduction of goods manufactured in China.
