Sheldon Lavin is a key leader of OSI Group. Sheldon Lavin and other individuals have been expanding their footprint in China. One factor that people have been worried about is that of the trade war between China the United States. Sheldon Lavin and other competent executives understand the nuances between US and China and how it will increase costs and potentially minimize revenues. As such, Sheldon Lavin must investigate finances and construct defenses to ensure that there isn’t any issues moving forward. We are already seeing issues in other industries where the trade war has affected industries, one of them has been that of footwear. More Than 70 Percent of American Footwear is Made in China.
The list released by the White House includes items that could be hit with 25 percent tariffs. Among other items, this also includes sneakers, casual sandals, golf shoes, and ski shoes, as well as footwear of all kind. A few decades ago, all of this would have not meant anything at all. But in today’s day and age where the American footwear industry is largely dependent on China, this could have very significant ramifications. As noted by CNBC, China is the largest supplier for footwear to the US. The country provided around 72 percent of all footwear that was imported by the US in 2017.
According to experts, while production has been moved to other countries by large companies, they are still using China as their primary or secondary location for footwear. This is mostly due to the country’s existing infrastructure of production and delivery mechanisms, as well as preset delivery channels which have been used by American companies time and again. This trust factor has not let American footwear companies pull out of China completely. For which, they may now need to pay a price. While the top two footwear companies in the US, Nike and Adidas, are trying to move away from China and setup their operations in countries such as Vietnam, they have not commented to news sources what they feel about the current update on tariff prices.