STEVE MADDEN's new strategy in the face of possible Trump import tariff increases
According to a campaign promise made by the newly elected US president, Donald Trump, a new tariff policy on imports would be imminent, which includes significant increases on a large part of goods and services, including footwear.
These measures would directly affect footwear prices, making them less affordable for certain consumer segments. While Trump’s intention is to boost domestic manufacturing, the U.S. industry is currently underdeveloped and unequipped to meet internal demand.
A recent study published by the National Retail Federation warned that American consumers could pay between US$ 6.4 billion and US$ 10.7 billion more annually for footwear under the proposed tariffs.
Ed Rosenfeld, CEO of STEVE MADDEN, based in New York, stated during a conference with analysts that the company reported strong earnings in the third quarter of 2024 and had been preparing for a "potential scenario where we would need to move goods out of China more quickly."
About two-thirds of Steve Madden’s business relies on imports, with approximately 70% of those imports originating from China. This means nearly half of the company’s business could face tariffs if Trump’s policies are enacted.
Rosenfeld shared that the company has been working hard to develop production capacities in Cambodia, Vietnam, Mexico and Brazil.
The company’s goal is to reduce the percentage of goods produced in China by 40-45%. Rosenfeld added, “If we are able to achieve this, within a year we’ll see slightly more than a quarter of our business subject to tariffs.”
Matt Priest, CEO of the Footwear Distributors and Retailers of America (FDRA), expressed concerns over the potential tariff increases on footwear imports, particularly from China.
He commented, “Encouraging the central administration not to add taxes on goods for Americans is probably a very good starting point if we want to ensure prices remain low.”
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