USA, now also New Balance is against Trump: “Duties on China ruin us”

Le supply chain di New Balance e Crocs dipendono dalla Cina

We surely cannot accuse New Balance of having prejudice towards Trump. The brand is the only one in the athletics’ industry, write CNN, to still have a strong presence in the USA, as far as production goes: 4 million pairs are produced every year inside the 5 footwear plants located in the New England area. Moreover, ever since Mr. Trump entered the White House, New Balance has often been outspoken regarding its support for the current president’s belligerent ways. But the imminent duties-escalation, which promises to hit directly and hard the footwear chain, has led NB to change their mind: enough is enough. The brand has written a complaint letter to the US Trade Representative’s Office (the government agency for foreign commerce), write CNN, which also anticipates some of the contents: “new tariffs would compromise our financial balance, putting our production-related investments at risk”, says the text. The problem is that NB purchases components fabricated in China, that are impossible to get from the USA: “The duties wouldn’t so much punish Beijing – concludes the letter -, but rather our chance to maintain our production balance in check”.

Crocs’ solution
Crocs has meanwhile decided to take countermeasures. The footwear brand announced that it is reviewing the variety of “origins” for its supply chain, in order to protect itself from the potential escalation of the trade war between USA and China. Specifically, the brand is diversifying its purchases in order to be the least dependent from the People’s Republic as possible: if until now China supplied 30% of the materials and pieces, its quota in 2020 will be down to 10%. This way, according to Just Style magazine, additional 25% duties on Chinese imports would only mean a “5 million USD increase” on Crocs’ costs.

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