"Lifting A Rock To Hit One'S Own Feet", The US Tariff Policy Severely Hits The Layout Of The Domestic Brand Supply Chain.

Crocs Inc. (NASDAQ:CROX) issued a statement on Tuesday that it will cut 2/3 of China made products next year.

Colorado footwear enterprises, known as "cave shoes", disclosed information related to tariffs on the 11 day cross industry insight conference held by Stifel. The company said that 30% of its products were made in China, and it is expected to be reduced to 10% in 2020. Even if the footwear tariff is adjusted in August 1st, the impact on the company is only 5 million dollars, which will not affect the overall situation.

Data show that in 2018, the loss of $69 million 200 thousand was registered by Carlo Locke, and the net profit was $65 million 900 thousand after excluding the SG&A cost of the buyback of Blackstone's partial shareholding paction. This means that the potential tariff adjustment this year has less than 8% of the net profit of the company.

At the same time, retail companies, which purchases goods from China, has to pfer the supply chain. Although Southeast Asia and Bangladesh have more preferential policies and lower labor costs, China's manufacturing is still irreplaceable in terms of infrastructure and efficiency.

G-III Apparel Group Ltd. (NASDAQ:G-III) chairman and CEO Morris Goldfarb attacked the US tariff policy at its performance meeting at the beginning of the month. He said that the pfer of all the Chinese production lines was "very easy", but "will not abandon 40 years of efforts and quality products and take risks in entering a new field." therefore, even if the profit margins suffer, the purchase of China will remain the best solution for the group.

The five largest global brands of Calvin Klein, Tommy Hilfiger, DKNY, Donna Karan and Karl Lagerfeld are one of the most important clothing retailers in the United States. The first quarter results showed that the company's performance was depressed under the direct and indirect effects of US tariff policy.

The US retail industry's dissatisfaction with Trump policy broke out at the end of last month, including the 173 American shoe companies, including Carlo, Nike Inc. (NYSE:NKE) Nike group, Adidas AG (ADS.DE), Adidas group, American subsidiary, Under Armour Inc. (NYSE:UA) Andemar, and jointly issued an open letter, trying to prevent the trade protectionist policy of the Donald Donald Te Donald Te government, including calling on the us not to impose tariffs on China's imported footwear products.

Footwear trade association Footwear Distributors & Retailers of America (referred to as FDRA) American shoe wholesale and retail association estimates that if tariffs are imposed, because of the increase in border pportation costs, labor prices or additional tariffs, price increases are inevitable. Consumers need to spend more on products, and American consumers will spend more than $7 billion a year.

According to statistics from the US Bureau of statistics, in 2018, the United States imported 11 billion 400 million dollars of Chinese footwear.

At present, the average import tariff of 11.3% footwear products in the United States is far higher than the average import tariff of 1.9% in the consumer goods industry. Some of the footwear products import tariffs have been as high as 67.5%. If we add 25% on this basis, it means that some wage earners in the US need to pay 100% of their shoes for their duties.