Trump has proposed a 10–20% tariff on all imported goods that can go up to 60% to even 100% on Chinese imports|Mitch Altman|CC BY-SA 2.0

President-elect Donald Trump’s campaign promises, which include hefty tariffs, are making companies change their production strategies. Some are even moving production out of China as they anticipate heavy duties in future.

Steve Madden’s shift away from China
Steve Madden, a $3 billion shoe brand, announced on Thursday that it will cut its China-made products by 40% to 45%. Currently, 70% of Steve Madden’s imports come from China.

CEO Edward Rosenfeld explained that the company has been preparing for this scenario for years.

Steve Madden is eyeing alternative manufacturing sites in Vietnam, Cambodia, Mexico and Brazil to reduce dependence on China. However, despite Trump’s push for US manufacturing, the fashion company isn’t relocating production to the US due to higher labor costs and limited manufacturing capabilities.

Trump has proposed a 10–20% tariff on all imported goods that can go up to 60% to even 100% on Chinese imports. He claims this will reduce the trade deficit and protect US jobs.

According to experts, other companies may also ditch China and move production and manufacturing elsewhere.

Impact on consumers
A 60% tariff could significantly raise prices for US shoppers as companies pass on the extra costs. S&P Global Ratings warns that the move would likely increase inflation, pushing up prices for finished goods.

During Trump’s first term, tariffs mainly ranged between 10% to 15%, affecting a smaller share of imports.

Economists warn that these tariffs could significantly increase consumer prices. For instance, a $50 pair of sneakers may jump to $59-$64.

Research from the Peterson Institute indicates middle-income US households could face up to $2,600 in added annual costs.

Bipartisan tariff policy under Biden
While President Joe Biden kept many Trump-era tariffs, mainly targeting Chinese products like steel and electric vehicles, economists argue this protectionist approach could harm the economy in the long term, increasing costs for consumers and inviting retaliatory actions that affect US exports.