Trade war-related chaos of the global supply chain. Brands trying to leave China in favor of alternative countries (which, meanwhile, raise their prices). Meanwhile, some are importing goods into the U.S. but labeling goods of Chinese origin as made in Vietnam to escape tariffs.
Goal: leaving China
Edward Rosenfeld, CEO of Steve Madden, explained how, next fall, the footwear production of the Steve Madden and Dolce Vita brands “will be virtually nil in China”. The group will rely on suppliers from Cambodia, Vietnam, Mexico and Brazil. With what consequences? Deliveries will be delayed by 30-45 days and profits will decline. As everyone tries to shift production from China to other countries, we are already seeing price increases of up to 10-15% here, Rosenfeld pointed out. According to him, reports Footwear News, Mexico and Brazil have become increasingly important in the supply chain. The CEO himself said how Kurt Geiger’s 80% sourcing from China poses a problem. “You will see this percentage drop significantly by spring of 2026”.
Moves
Rosenfeld spoke of so many brands that are trying to escape tariffs by relocating their supply chains. Especially in Vietnam: the numbers say so. Vietnam’s exports to the United States rose 34% in April. During the same month, imports of made-in-China goods into Vietnam grew about 31%. Washington has openly accused Chinese companies of using Vietnam as a transshipment hub to evade tariffs, and it has promised tighter controls at customs (Source Sourcing Journal). Brands are also trying to stall through increased use of bonded warehouses and free trade zones (FTZs). Both options allow companies to defer paying duties while keeping imported goods on U.S. soil.
Brazil
Brazil is also a winner of the tariff war. From January to March, the Brazilian footwear industry created 9,100 more jobs than in the same quarter 2024 (Source Abicalçados). But the tariff-driven conflict is not only creating new opportunities but is causing the “dumping” of Chinese footwear in Brazilian retail, pointed out by Abicalçados’ CEO Haroldo Ferreira.
Photo from Shutterstock
Read also:
- Tariffs leave no escape: Hermès and OTB raise prices in the U.S.
- Bernstein believes China is getting more and more stagnant (and closed-off, we add)
- Duties: even LV raises prices as US brands struggle
