The global footwear sourcing landscape is undergoing rapid and disruptive changes due to evolving tariff policies. With tariffs already imposed on footwear imported from China—and similar measures now targeting Mexico—two of the industry’s most established and cost-efficient manufacturing bases are becoming increasingly unviable.

As a result, many brands are seeking alternative production hubs, such as Vietnam, Indonesia, and Brazil. For large-scale companies with strong vendor relationships and high order volumes, these transitions may appear seamless. However, the broader reality is more complex and less favorable.

Recently, one of our client brands experienced an unexpected 20% cost increase from a country not affected by current U.S. tariffs. This scenario highlights a critical issue: as demand shifts away from China and Mexico, other manufacturing countries—many already operating at full capacity—are raising their prices in response to increased interest. These markets have little incentive to maintain previous pricing levels when they now have increased leverage.

In other words, while relocating production may bypass tariffs, it does not guarantee cost stability. The cost pressures are global, not localized.

To mitigate these challenges, brands must adopt a strategic and proactive approach. Three key actions are recommended: