Trump’s tariffs hit fashion: Steve Madden, Temu react

What happened The U.S.-China trade war is escalating, and fashion brands like Shein and Steve Madden are feeling the heat. With U.S. President Trump’s additional 10% tariff on Chinese imports set to take effect on March 4 — on top of the existing 10% tariff imposed on February 4 — fashion retailers are scrambling to adjust pricing, sourcing, and supply chain strategies to stay competitive. Steve Madden, for one, plans to raise its prices to counter higher costs. “We will be selectively raising prices,” said CEO Edward Rosenfeld during the firm’s Q4 earnings call on Wednesday. “And where we think that we can get a little bit more for the goods, we will do that starting in fall.” How Steve Madden is reducing its reliance on China amid rising tariffs The American shoes and accessories company is particularly exposed to Trump’s tariffs due to its high reliance on Chinese production. Since November last year, it has reduced the proportion of goods imported into the U.S. from China from 71% to 58%, with plans to bring that figure down to the “low 40%” by the end of the year. Despite these changes, Steve Madden expects revenue for 2025 to grow 17% to 19% YoY, assuming its proposed acquisition of Kurt Geiger is completed in May. Trump’s tariff order comes in response to the “extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl,” according to the White House. “Chinese officials have failed to take the actions necessary to stem the flow of precursor chemicals to known criminal cartels and shut down money laundering by transnational criminal organizations.” The Jing Take Steve Madden isn’t the only brand affected by Trump’s trade war. Low-cost retailers like Shein and Temu, which currently benefit from the de minimis exception — a trade rule allowing merchandise valued at less than $800 to enter the U.S. duty-free — are also at risk. While Trump issued an executive order to end the de minimis exception in early February and then promptly reversed it, the U.S. government expects to eliminate it once a system is in place to “fully and expediently process and collect tariff revenue.” To work around this, Temu has started steering American consumers toward goods shipped from American warehouses, while Shein has opened U.S. distribution centers and an office in Seattle over the past few years. China is not taking these shots lying down. The country has imposed its own tariffs on American goods, including crude oil, liquefied natural gas, and farm machinery, and has vowed further retaliation in the light of the additional 10% tariff on Chinese imports. “If the U.S. insists on its own way, China will take all necessary countermeasures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson said in a statement today. Will US fashion brands suffer? PVH, other retailers face Chinese sanctions American fashion brands like Calvin Klein and Tommy Hilfiger have found themselves caught in the crossfire. Earlier this month, China’s Ministry of Finance placed PVH, their parent company, on its “unreliable entities list,” a move that could result in fines and other penalties. This is the first time a consumer brand has been added to the list. Meanwhile, Canadian apparel brands could also see their sales hit after Trump’s 25% tariff on Canadian imports goes into effect next week. Toronto-based Canada Goose, for example, makes nearly all of its luxury down jackets in Canada. Lululemon, on the other hand, is less likely to be impacted, given that less than 5% of its products are made in Canada, Mexico, or China, with production largely based in other Asian countries. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Trump’s tariffs hit fashion: Steve Madden, Temu react

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Published February 28, 2025

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Trump’s tariffs hit fashion: Steve Madden, Temu react