After a busy market week in New York and a packed earnings season, tariffs have emerged as the hottest topic dominating conversations in the shoe industry.

Ninety-nine percent of the shoes sold in the United States are imported from primarily China, Vietnam and Indonesia, regions that could be subject to potential tariff changes under Donald Trump. The President-elect recently said he plans to impose a 25 percent tax on all products entering the U.S. from Canada and Mexico, plus an additional 10 percent tariff on imports from China. That’s after Trump vowed earlier this year to impose a 10 to 20 percent tariff on imports from all foreign countries and an additional 60 to 100 percent tariff on imports specifically from China.

Luckily for the shoe industry, many companies have already diversified their sourcing away from vulnerable regions like China in the wake of the supply chain meltdown in 2021. So executives have been overall confident in their ability to manage another era of change, if necessary.

Here’s what they had to say:

Foot Locker

Foot Locker chief executive officer Mary Dillon told FN in an interview last week that the retailer will monitor any updates related to potential tariff changes that could possibly impact business. Foot Locker’s direct exposure to China is limited, though Dillon noted that brand partners could see more of an impact.

“What’s in our direct view of what we buy is pretty small,” Dillon said. “And as it relates to our brand partners, it’ll be up to them how they want to pass along if those costs happen. But we were watching it closely and feel like we have a good handle on it.”

Lululemon

Lululemon’s chief financial officer Meghan Frank said in a call with analysts last week that the brand only sources about 3 percent of its goods from China and less than half a percentage from Mexico.

“If tariffs were levied on imports from all countries into the U.S., that would obviously have a more significant impact on our costs,” Frank said. “We are closely monitoring, and we’ll look at opportunities across our P&L to manage through that as well.”

Crocs

In a statement to FN, Crocs Inc., which also owns the Hey Dude brand, said it operates a diversified sourcing and supply chain footprint across Vietnam, Cambodia, China, Indonesia, Mexico, India and Bosnia.

“As is standard, we will continue to monitor changing regulations and legislation as we move into the new administration and we remain nimble in our ability to respond to the same,” the company said. “In the meantime, we continue to diversify our sourcing out of China and optimize our product importation into the U.S. as is necessary to efficiently run our business.”

Caleres

Jay Schmidt, president and chief executive officer of Caleres, said in a call with analysts last week Caleres’ supply chain and sourcing capabilities are “well-positioned to adapt and evolve to meet the changing environment.”

“We have been working closely this year with our factory partners to pivot our sourcing outside of China and mitigate the impact of additional tariffs on the business for 2025,” Schmidt said.

Caleres CFO Jack Calandra added that while 50 percent of the company’s “dollar volume” is manufactured outside of China, Caleres is looking to increase this to 70 percent by the end of 2025. The chain’s brand partners are making progress on diversification as well.

“At Famous, currently about 15 percent of our vendor receipts are made in China. We expect this number to move lower as well,” Calandra said. “We are working proactively to mitigate the risk of additional tariffs and believe our sourcing capabilities position us well to adapt to any changes.”