One firm is already responding to President-elect Trump’s proposed tariffs, which might lead to larger costs for American shoppers if retailers go alongside added prices to consumers. 

Shoemaker Steve Madden says it plans to import fewer items made in China to the U.S., and substitute them with objects made in different nations. 

The corporate instructed analysts on an earnings name Thursday that the plan to scale back its reliance on China and diversify its imports has been within the works for a while. 

“Now we have been planning for a possible situation during which we must transfer items out of China extra rapidly,” CEO Edward Rosenfeld instructed analysts on the decision. “We have labored exhausting over a multiyear interval to develop our manufacturing unit base and our sourcing functionality in various nations, like Cambodia, Vietnam, Mexico, Brazil, and so on.”

The corporate began implementing the plan Wednesday, Rosenfeld stated. At present, greater than 70% of Steve Madden U.S.’s imports are from China. Rosenfeld goals to chop that determine by 40%-45%, up from a goal of 10%.

Trump has proposed a 60% tax on imports from China, plus a common tariff of 10%-20% on imports from all international nations. 

If imposed, the proposed tariffs on imports might result in shoppers paying $6.4 billion to $10.7 billion extra for footwear, in accordance with a new evaluation from the Nationwide Retail Federation. People might additionally lose between $46 billion to $78 billion in spending energy annually the tariffs are in place, the group estimates.