Steve Madden Diversifies Sourcing Amid Tariff Threat

Steve Madden plans to cut its imports from China by 40-45% in anticipation of President-elect Donald Trump's proposed tariffs, which could be as high as 60% on Chinese goods. The company has developed factory networks in Cambodia, Vietnam, Mexico, and Brazil to mitigate the impact, aiming to significantly reduce its exposure to these tariffs. Currently, two-thirds of Steve Madden's business relies on imports, with 70% coming from China. The National Retail Federation has criticized the potential tariffs, noting they could reduce American consumer spending power by $46 billion to $78 billion annually. Other companies are considering similar strategies to address potential economic shifts due to the tariffs. Trump's tariff plans aim to incentivize U.S. manufacturing by making imported goods more expensive, although Steve Madden is focusing on diversifying its sourcing countries rather than moving production to the U.S.