Former CEOs of Home Depot and Chrysler, Bob Nardelli, stated that the overwhelming victory of former President Trump in the US election has caused a stir in the business world. Since last week, corporate executives have been seeking to move production out of China.
Nardelli said in an interview with Fox News’ “Mornings with Maria” on Tuesday that he believes Trump will have a positive impact on growth, will take very protectionist measures, and will try to encourage companies to move out of China.
“There was a big debate yesterday about supply issues, basically replacing domestic demand in China. Many companies and CEOs I have spoken to are already considering how to leave China, either onshore, returning to the United States to conduct business, or relocating to another favored country,” he said.
Nardelli did not specify which company executives are already considering withdrawing from China.
While attending the Fortune Global Forum in New York this week, he also felt the business world’s reaction to Trump’s victory.
“The conversations there are very optimistic,” he said. “Although there are still some opponents, but if you look at the quick start of the new government and President Trump, I think this is a good sign for business.”
Just a few days after Trump’s victory, popular shoe company Steve Madden announced plans to “quickly” reduce production in China by up to 45%, as the company hopes to focus more on Brazil, Mexico, Vietnam, and Cambodia to avoid the impact of a 60% tariff.
During the campaign, Trump had stated that if elected president, he would raise tariffs on Chinese goods to 60%.
Quoting an executive from Steve Madden, Reuters reported, “If Trump decides to levy tariffs when he takes office in January, less than half of our current business may be affected by tariffs on imported products from China.”
CEO Edward Rosenfeld said, “Imposing significant tariffs on China will have a profound impact on the supply chain and the overall economy.”
A few years ago, nearly 95% of the products sold by this shoe company in the United States were imported from China.
In addition to Steve Madden, Church & Dwight Co. has already moved some production out of China, especially its Waterpik oral care business.
During his first term, Trump used tariffs on China to force the CCP to the negotiating table, trying to address what the United States sees as unfair trade practices.