Companies began to leave China due to threat of Trump tariffs

According to the agency, footwear manufacturer Steven Madden previously announced a 40% reduction in production in China until the end of 2024. Initially, the company planned to reduce the figure by 10%. Footwear production will be distributed to other countries, including Cambodia, Vietnam and Mexico.

Until a few years ago, the retailer imported almost 95% of the products it sold in the United States from China. At the same time, the company will not be able to completely exit China; About 25% of Steven Madden’s business will be affected by the proposed US tariffs, Bloomberg writes.

Housewares specialist Church & Dwight and cat litter maker Oil-Dri, for which China is a major raw material supplier, also announced production cuts in China.

During his first term, Trump introduced a series of tariff packages on imports of goods not only from China, but also from several European countries. The most extensive tariff restrictions were introduced in 2018. The United States then imposed 50% tariffs on imports of solar panels and washing machines, then imposed 25% tariffs on steel and 10% on aluminum from the European Union, Canada and Mexico. Subsequently, four countries, including South Korea, agreed with Trump to lift steel tariffs.

As part of his 2024 election campaign, Trump proposed increasing tariffs on Chinese imports to 60%, as well as introducing a 10% tax on all imported goods. The Republican also did not rule out new tariff increases.

The final three years of Trump’s first term, marked by higher tariffs on Chinese goods, resulted in an average of $200 to $300 more in annual spending by each American household, according to the U.S. International Trade Commission. At the same time, tariffs on steel and aluminum caused a $3.4 billion drop in production in secondary areas, such as the auto industry, the department found.

The Peterson Institute for International Economics has calculated that Trump’s proposal to increase tariffs to 60% will reduce the income of all American citizens without exception; the effect varies from -2% for the super-rich to -4% for the poorest segments of the population.