Tariffs on Vietnam would be more disruptive than those on China for Crocs due to its deep reliance on Vietnam for manufacturing, Crocs CEO Andrew Rees has told an investor call.
“If a reciprocal tariff remains in place relative to Vietnam, that’s a huge amount of production for us and everybody else. That would be incredibly hard to mitigate,” he said.
This reinforces Vietnam’s strategic importance in global apparel and footwear production—and the high-stakes risks of any escalation in U.S.-Vietnam trade tensions.
Rees also notes that:
- Vietnam is Crocs’ single largest sourcing country, expected to contribute 47 percent of total product imports to the U.S. in 2025.
- This is significantly ahead of other sourcing countries: Indonesia (17%), China and India (13% each), and Mexico/Cambodia (5% each).
- While tariffs on China could be avoided by shifting production, Vietnam exposure is far more embedded and would be hard to relocate quickly.
- Crocs said a 10% global tariff on all sourcing locations would cost them ~US$45 million annually.
- In a worst-case scenario — where 145% tariffs on China remain and other regions like Vietnam face 10% tariffs — the cost impact could be as high as US$130 million, although Crocs says this is unlikely due to their ability to shift sourcing out of China (but not easily from Vietnam).
- Crocs denied seeing rising production costs in Vietnam or other Southeast Asian countries, contrary to market rumours.
See also: What’s Next for Vietnam if Trump’s 46 Percent Tariff is Here To Stay?