As trade tensions between China and the United States intensify, Puma is shifting its supply chain, sourcing more from countries like Vietnam and Indonesia for the US market, according to CEO Arne Freundt.
The ongoing economic conflict between the world’s two largest economies has escalated, with the Trump administration imposing 10% tariffs on China, prompting Beijing to retaliate with levies and export restrictions. Freundt revealed that Puma now imports just 10% of its US footwear from China, a significant drop from 30% previously. Since Trump’s election, the company has adapted to evolving trade policies, including new export limitations and taxes.
Freundt emphasised the importance of agility, noting that trade uncertainty directly influences consumer behaviour. During a recent visit with US staff, he assessed consumer sentiment, analysed competitors, and ensured sourcing teams had first-hand market insights.
“You need to be very close to things which are happening, and have a constant information flow, and reflect if your plans are still accurate under that environment or if you need to change things,” he stated.
Puma’s diversified sourcing strategy, including its reliance on Vietnam and Indonesia, gives it a competitive edge. “Other competitors may not be able to react that fast. It might lead to certain price increases,” Freundt noted.
Over the past year, Puma has gained momentum, particularly with products stocked in trendy retailers like Kith and End. The Speedcat sneaker, originally launched in 1999, has been revitalised, gaining popularity among celebrities such as Jennifer Lawrence.
“What we have done in the last 12 to 18 months is really to build up a new silhouette, a new trend,” Freundt said. “We are very confident that this can be one of the hottest shoes in the summer.”
However, Puma has faced recent challenges. Demand for core products like Suede XL skate shoes and Palermo trainers weakened in November, particularly in China and Latin America, where warehouse constraints added pressure. Despite strong Q3 results and a reaffirmed 2024 outlook post-election, overall consumer demand declined after peaking in October.
In January, Puma’s shares suffered their steepest drop in over two decades following weaker-than-expected Q4 earnings. The company missed projections and delayed a key profitability target by two years, unsettling investors.
Puma’s US trade strategy will remain shaped by geopolitical uncertainties. As tensions persist, the company may further diversify its sourcing and supply chain to mitigate risks. By staying agile and responsive to market shifts, Puma can enhance its resilience and achieve long-term success in the evolving global trade landscape.
PUMA is driving sustainability through its “FOREVER. BETTER.” strategy, designed to reduce environmental impact and promote responsible practices across its operations and supply chain. A key focus is climate action, aligning with the Paris Agreement to limit global warming. By 2030, PUMA aims to cut absolute Scope 1 and 2 greenhouse gas emissions by 90% from a 2017 baseline and reduce Scope 3 emissions by 33%, targeting its supply chain and logistics.
Water and air quality management is another priority, with PUMA collaborating with manufacturing partners to minimise water consumption, prevent pollution, and control emissions within regulatory limits. These efforts support cleaner production processes and reduce ecological harm.
Chemical management plays a crucial role in PUMA’s sustainability approach. The company enforces strict policies to safeguard consumers, workers, and the environment from hazardous substances. By eliminating harmful chemicals and ensuring compliance with safety regulations, PUMA enhances environmental protection and workplace safety.
The company is also committed to sustainable materials in products and packaging. By 2025, PUMA targets 100% certified and/or recycled paper and cardboard, with 88% of this goal achieved by 2021. All paper bags and hangtags in PUMA stores are FSC certified, while shoe boxes contain over 95% recycled content, reducing waste and reliance on virgin materials.
Guiding its sustainability efforts are PUMA’s 10FOR25 targets, established in 2019 through extensive stakeholder engagement. These address human rights, climate action, circularity, sustainable products, water and air quality, biodiversity, ocean plastics, chemicals, health and safety, and fair wages.
Through these initiatives, PUMA reinforces its commitment to climate action, resource conservation, and ethical sourcing, ensuring a more sustainable and responsible future for the industry.
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https://apparelresources.com/business-news/sourcing/puma-pulls-back-chinese-imports-china-us-trade-war-intensifies/
US, FashionNetwork. com. (2025, February 6). Puma curbs flow of sneakers from China to us as tariffs kick in.
https://us.fashionnetwork.com/news/Puma-curbs-flow-of-sneakers-from-china-to-us-as-tariffs-kick-in,1700366.html
MSN. (n.d.).
https://www.msn.com/en-ie/money/other/puma-swaps-out-chinese-suppliers-as-trade-war-heats-up/ar-AA1yyWy5
Environment. PUMA SE. (n.d.).
https://about.puma.com/en/sustainability/environment
