Crocs to cut the amount of US product it sources - sportstextiles: Lea SportsTextiles

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Crocs to cut the amount of US product it sources from China

13/06/2019
Footwear brand Crocs has offered details of some of the measures it is putting in place to ensure that the ongoing trade dispute between the US and China does not have an adverse impact on its business.

The two countries have traded tit-for-tat tariff threats over recent months, with US President Donald Trump most recently suggesting that more products entering the US from China could be affected should a planned meeting with his Chinese counterpart, Xi Jinping, not have a satisfactory conclusion.

In its release, Crocs said it currently imports approximately 30% of its US product from China. It explained that should proposed tariffs of 25% take effect on August 1, the impact on its business would be approximately $5 million. 

It went on to say that it is currently engaged in a “multi-year effort” to reduce its sourcing from China. It expects the amount of US product it sources from China to be below 10% in 2020. 

“We are evaluating various mitigation initiatives which will be implemented to lessen the impact on Crocs of any tariffs ultimately put into effect,” the company concluded in its statement. 

Related stories:

Factory closures not the end of the line for Crocs in Mexico 27/03/2019
Crocs to outsource all its manufacturing 13/08/2018

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