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Bloomberg
With President Donald Trump slapping 25% tariffs on $200 billion in Chinese goods, those companies who’d already started moving production outside China are looking pretty smart. But those shifts come with their own headaches.
Take Tapestry Inc, owner of the Coach and Kate Spade brands. As it relocates more manufacturing outside China, interim finance chief Andrea Shaw Resnick says it’s finding infrastructure investments in key Asian ports like the Philippines,
Vietnam and Cambodia “have simply not kept pace.â€
“While this has not resulted in higher freight costs, it has resulted in longer lead times with more inventory on the water at any given time,†Resnick said. Bagmaker Vera Bradley Inc is in a similar boat. It’s been setting up factories in Myanmar, Cambodia and Vietnam — giving it a supply chain free of the additional Chinese tariffs but also weighing down its average delivery times.