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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

301

  • Associations and CEOs Urge President Trump to Reconsider 301 Tariffs on China

    President Trump received two letters—including one signed by the United States Fashion Industry Association (USFIA)—expressing concerns about potential tariffs under Section 301 of the Trade Act of 1974. The Administration is investigating China’s intellectual property and technology policies and considering broad tariff remedies on imports from China. One letter, available here, was signed by more than two dozen fashion and retail CEOs, including USFIA members American Eagle Outfitters, JCPenney, Kohl’s, Levi Strauss & Co., and Macy’s, among others. The other letter, available here, was signed by more than 40 trade associations across fashion, retail, tech, autos, and food and beverages. The Wall Street Journal has more on the trade association letter.

  • Industry Groups Ask Trump Administration to Update the Exclusion Process for Products Covered by the Section 301 Tariffs

    The United States Fashion Industry Association (USFIA) joined with more than eighty industry groups to ask United States Trade Representative, Robert Lighthizer, for improvements to the exclusion process available for products that are affected by the penalty tariffs imposed under the 301 action against China. The letter contains proposals for product exclusion request procedures, and detailed recommendations regarding the criteria the Administration will use to evaluate product exclusion requests. Click here to read the full letter.

  • Inside U.S. Trade: Reacting to the threat of Section 301 tariffs

    The U.S. Fashion Industry Association wants five minutes during a Section 301 Committee hearing next week to urge the administration “to reject calls to add apparel” to the list of products susceptible to tariffs on China imports should threatened levies be implemented.

    Click here to read the entire article on the Inside U.S. Trade website.

  • US Fashion Industry Association to Testify Today During USTR’s Section 301 Hearings

    Today, August 23, 2018, United States Fashion Industry Association (USFIA) President Julia K. Hughes is scheduled to testify during the Office of the U.S. Trade Representative’s public hearing on the proposed tariffs on approximately $200 billion worth of Chinese products under Section 301 of the Trade Act of 1974.

    The list includes several products manufactured and sold by the apparel industry, including hats and headwear in Chapter 65 of the Harmonized Tariff Schedule, luggage and handbags in Chapters 42 and 46, and leather and faux leather apparel and products in Chapter 42, as well as other textiles, furniture, feathers, and more.

    “We continue to find it hard to believe that the Administration really wants to impose a tax on the basic household purchases of Americans, and we ask you to reconsider this action. The path forward to change the policies in China that are the subject of the 301 investigation is not to tax consumer products. We continue to believe that the best action is to work with our trading partners, and the Chinese government, to negotiate global solutions,” says Hughes in her testimony.   

    Her entire testimony as prepared for delivery is available here: http://www.usfashionindustry.com/pdf_files/USFIA-Oral-Testimony-082318.pdf

    To speak with Hughes, contact Samantha Sault at This email address is being protected from spambots. You need JavaScript enabled to view it. or 301-529-1451.

  • USFIA Files Post-Hearing Comments on 301 Tariffs

    On May 22nd, the United States Fashion Industry Association (USFIA) filed post-hearing rebuttal comments in support of omitting fashion and apparel products from the proposed list of products subject to increased duties under Section 301 of the Trade Act of 1974. Our comments provide more information on industry sourcing trends and how sourcing in China and Asia supports jobs in the United States. The comments are available here.

    We also joined comments signed by 52 associations representing U.S. manufacturers, farmers and agribusinesses, retailers, technology companies, importers, exporters, and other supply chain stakeholders expressing concerns about the use of tariffs to address China’s unfair trading practices. The comments are available here.

    The U.S. Global Value Chain Coalition (USGVC) also filed comments, available here.

    Finally, more than 50 fashion brands and retailers, including many USFIA members, filed comments, as well, available here.

  • USFIA Files Post-Hearing Comments on Third List of China 301 Tariffs

    Following the Office of the U.S. Trade Representative’s hearing in August on the third proposed list of $200 billion in tariffs, the United States Fashion Industry Association (USFIA) filed comments urging the Administration to remove certain apparel products and consumer goods from the list.

    “The Administration has proposed tariffs on many items manufactured and sold by USFIA members, which will have a direct impact on American consumers, especially during the back-to-school and holiday shopping seasons,” we said. “Of particular concern to USFIA’s member companies and consumers are the proposed tariffs on hats and headwear in HTSUS Chapter 65; luggage and handbags in Chapters 42 and 46; leather and faux leather apparel and products in Chapter 42; and lamps and furniture in Chapter 94. Our members also have concerns about the proposed tariffs on cookware in Chapter 73; picture frames in Chapter 83; plastic articles including rainwear and hangers in Chapter 39; certain electrical equipment including vacuum cleaners and television sets in Chapter 85; paper products in Chapter 48; articles of wood including jewelry boxes in Chapter 44; aluminum products including sanitary ware in Chapter 76; feathers used for stuffing and down in Chapter 5; textile products including felt and nonwovens and certain yarns in Chapter 56; and specialty textile products including embroidery in Chapter 58.”

    The comments explain how the tariffs will harm consumers and jobs in the United States, while doing nothing to solve the IPR challenges with China; furthermore, the tariffs will actually discourage sourcing and manufacturing within the United States. The comments are available here.

    In addition, USFIA joined multi-industry comments from a coalition of more than 150 trade associations representing U.S. retailers, manufacturers, farmers, technology companies, natural gas and oil companies and other industries. “Our organizations agree that longstanding issues in China have negatively impacted many U.S. companies, and we support the administration’s efforts to negotiate meaningful, binding and long-term solutions with the Chinese government, (but) applying these high levels of tariffs on Chinese products will continue to miss the mark,” we said.

    USFIA joined additional comments from apparel, soft-goods, and retail associations, as well, available here.

  • USFIA Files Post-Hearing Comments on Third List of China 301 Tariffs

    Washington, D.C. -- Following the Office of the U.S. Trade Representative’s hearing in August on the third proposed list of $200 billion in tariffs, the United States Fashion Industry Association (USFIA) filed comments urging the Administration to remove certain apparel products and consumer goods from the list.

    “The Administration has proposed tariffs on many items manufactured and sold by USFIA members, which will have a direct impact on American consumers, especially during the back-to-school and holiday shopping seasons,” we said. “Of particular concern to USFIA’s member companies and consumers are the proposed tariffs on hats and headwear in HTSUS Chapter 65; luggage and handbags in Chapters 42 and 46; leather and faux leather apparel and products in Chapter 42; and lamps and furniture in Chapter 94. Our members also have concerns about the proposed tariffs on cookware in Chapter 73; picture frames in Chapter 83; plastic articles including rainwear and hangers in Chapter 39; certain electrical equipment including vacuum cleaners and television sets in Chapter 85; paper products in Chapter 48; articles of wood including jewelry boxes in Chapter 44; aluminum products including sanitary ware in Chapter 76; feathers used for stuffing and down in Chapter 5; textile products including felt and nonwovens and certain yarns in Chapter 56; and specialty textile products including embroidery in Chapter 58.”

    The comments explain how the tariffs will harm consumers and jobs in the United States, while doing nothing to solve the IPR challenges with China; furthermore, the tariffs will actually discourage sourcing and manufacturing within the United States.

    The comments are available here.

    To speak with an expert from USFIA, contact USFIA VP of Communications Samantha Sault at This email address is being protected from spambots. You need JavaScript enabled to view it.or 301-529-1451.

  • USFIA Joins 100+ Trade Groups on Letter on 301 Tariffs

    The United States Fashion Industry Association (USFIA) joined more than 100 trade associations in a letter to the House Ways & Means Committee expressing concern about the Section 301 tariffs. The letter is available here, and the Wall Street Journal reported on the letter here. The committee is holding a hearing on the tariffs today; we’ll provide any relevant updates to members after the hearing.

  • USFIA Joins Multi-Industry Comments on 301 Tariffs

    In advance of next week’s hearing, United States Fashion Industry Association (USFIA) has joined two multi-industry comments filed with the Office of the U.S. Trade Representative. One led by a group of soft-goods industry trade associations expresses “very strong opposition to any tariff increases on U.S. imports of consumer products, such as clothing, shoes, home goods, fashion accessories, or travel goods from China.” Another includes dozens of apparel, retail, agriculture, electronics, automobile, tech, and other industries who say the tariffs “will not effectively advance our shared goal of changing these harmful Chinese practices in a durable, verifiable, and enforceable manner.” USFIA will be filing our own comments today, which we’ll share with members next week.

  • USFIA Joins Soft Goods Industry Letter to Trump on 301 Tariffs

    The U.S. Fashion Industry Association (USFIA) joined several soft-goods industry groups in sending a letter to President Trump opposing “tariff increases on U.S. imports of consumer products, such as clothing, shoes, home goods, fashion accessories, or travel goods from China.” The letter is available here. According to multiple reports, President Trump is expected to impose up to $60 billion in new tariffs on products from China on Friday; some sources say there may be a public comment period, but it’s not entirely clear. The steel and aluminum tariffs are set to go into effect on March 23, just 15 days after President Donald Trump signed the proclamations, without such a comment period.

  • USFIA rues decision to start process to impose 301 Tariffs

    Responding to the US decision to initiate the process to impose 301 Tariffs on apparel and footwear, the US Fashion Industry Association (USFIA) said the tariff lines that are now threatened with additional tariffs up to 25 per cent include products that are already highly taxed. Clothing and shoes for US citizens are currently taxed more than $15 billion per year.

    Read the full article on Fibre2Fashion. 

  • USFIA Speaks Out Against Trump Administration Decision to Initiate Process to Impose 301 Tariffs on Clothing, Home Textiles and Footwear

    FOR IMMEDIATE RELEASE 

    WASHINGTON, D.C. - After months of anxiety and carefully watching the latest Twitter attacks, this week the Trump Administration declared war on American consumers.  Until now the Administration has argued that the tariffs on China were just a tool to keep the pressure on during trade talks that were going to cover everything from stopping counterfeits to revising the entire economic system in China.   There might be some tough times for certain industries, and definitely tough times for American farmers, but – so the story went – there was the promise of substantial growth in exports and more regulation of forced technology transfers and IPR violations.  

    But that all changed yesterday with the announcement that the Trump Administration is planning to put 25% tariffs on ALL imports from China.  In the notice released by the Office of the U.S. Trade Representative there are 135 pages of tariff lines that are now threatened with additional tariffs up to 25 percent.  These tariffs are a tax that will be paid by American companies and ultimately by American consumers.   A recent study commissioned by Tariffs Hurt the Heartland estimates that imposing tariffs of 25 percent on these imports from China, combined with the impact of retaliation, cost the average U.S. family of four nearly $2,300 each year.  Plus the economic impact would jeopardize more than 2 million American jobs.

    What policy-makers seem to be forgetting is that many of these products are already highly taxed. Clothing and shoes for American families are currently taxed more than $15 billion per year.  And these tariffs already are extremely high -- tariffs on clothing can be as high as 32 percent.  Tariffs are a direct tax on the American consumer—and will affect consumers at all income levels, from the single parent struggling to make ends meet as they purchase back-to-school necessities for their kids, to the consumer of high-end fashion manufactured in the United States, and every American family in between.

    These tariffs on imports of clothing, home textiles and footwear will do little to punish China for its intellectual property and technology transfer practices but do a lot to harm American fashion brands and retailers as well as consumers of their products.   Let’s work together to find a solution that does not use American companies and American families as the hostages to a trade deal.  

  • USFIA Speaks Out Against Trump Administration Decision To Initiate Process To Impose 301 Tariffs On Clothing, Home Textiles And Footwear

    USFIA speaks out against the Trump Administration's decision to initiate the process to impose 301 tariffs on clothing, home textiles, and footwear.

    Read our full statement on Textile World's website here. 

  • USFIA Statement on Potential 301 Tariffs

    The threat to fashion brands and retailers—and the consumers who love them—heightens as the Trump Administration considers new tariffs on products from China, which could potentially include clothing, shoes, accessories, and home textiles.

    The United States Fashion Industry Association (USFIA) has joined with business groups in many sectors, including fashion, footwear, retail, and tech, in sending letters to President Donald Trump urging him to reconsider the expected broad-based remedy tariffs under Section 301 of the Trade Act of 1974. (Click here to read both letters.)

    In case we weren’t clear the first time, while we support efforts to protect the intellectual property of brands and retailers, we will never support punitive tariffs based on the fiction that imports harm domestic jobs and growth. These new tariffs will not create more jobs in the United States, but instead, will harm the companies that already create thousands upon thousands of high-quality jobs in design, in marketing, in retail, in logistics, in compliance, right here in the United States.

    And these tariffs will absolutely harm American consumers, who will face higher prices on the clothes, shoes, home products, and other essentials.

    To reiterate, tariffs are not the way to support American companies and jobs, and definitely not the way to participate in the global economy. We urge the Trump Administration to consider the implications of these tariffs, and at the very least, consult with American brands and retailers before taking this egregious step.

  • USFIA Testifies at 301 Hearings, Urges Administration to Leave Fashion Off List of Products Subject to New Tariffs

    Today, USFIA President Julia K. Hughes testified during the Office of the U.S. Trade Representative’s hearing on Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. In her testimony, she emphasized the importance of global trade for our industry and explained how tariffs would harm jobs in our sector and the price of clothing for consumers. The testimony as distributed at the meeting is available here.

  • USFIA Testifies at USTR's 301 Hearing

    Today, USFIA President Julia K. Hughes testified at the Office of the U.S. Trade Representative's hearing on the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The testimony is available here, and below.

    Section 301 Determination: China’s Acts, Policies, and Practices Related toTechnology Transfer, Intellectual Property, and Innovation

    Docket No. USTR-2018-0005

    Fashion is made possible by global trade. And that’s why the United States Fashion Industry Association (USFIA) urges the Trump Administration to leave fashion products off the list of products subject to tariff increases under Section 301.

    About USFIA and the Fashion Industry

    First, a little bit about USFIA. We represent apparel brands, retailers, importers, and wholesalers based in the United States and doing business globally, including many of the iconic fashion brands worn and loved by everyone in this room. You are probably wearing many of our members today, and global trade allows them to produce quality, affordable products for you and your families, and families across America.

    Perhaps more than any other sector of manufactured goods, the fashion industry relies on global supply chains. A bale of cotton may be grown in Texas, shipped to Europe to be made into yarn, shipped to Korea to be made into fabric, shipped to Vietnam to be made into apparel, and shipped to the United States to be sold at retail in a store back in Texas. But even more exciting, those garments made using that supply chain also might be sold in Singapore, Japan, Dubai, or London. We are acutely aware of the need to aggressively challenge all types of trade barriers. We support better market access, not only to boost U.S. exports or U.S. imports, but also to facilitate global trade.

    Our industry imports over $80 billion dollars’ worth of apparel into the United States each year. We do so because apparel cutting and sewing operations are the first rung on the ladder of economic development, a rung our nation fortunately climbed long ago. As iconic American brands, our member companies do, at times, manufacture in the United States, particularly high-end and innovative products. For the most part, however, our member companies work, by necessity, with overseas apparel manufacturers, often partnering with more capital-intensive U.S. yarn spinners and U.S. fabric producers to source yarn and fabrics.

    The fashion industry is a significant contributor to high-paying employment right here in the United States. The migration of cutting and sewing operations offshore has led to higher-paying American jobs in the United States. Retail operations alone support 42 million jobs—or 1 in 4 jobs in the United States—and fashion brands and retailers create high-quality design, product development, logistics, sourcing, and service job opportunities at home, in addition to manufacturing jobs. These global value chains allow our member companies to provide Americans with affordable fashion—made possible by trade.

    We need multilateral action, not tariffs.

    Imposing tariffs on imports of these fashion products would do nothing to solve the concerns about China’s IP policies and practices outlined in USTR’s Section 301 report.

    From the experience of USFIA member companies—who source and sell products around the world, including and especially in China—the best way to address these concerns is action at the multilateral level that includes other global trading partners. (And believe us, we know about IP concerns.)

    Tariffs on fashion products = huge tax increase.

    Tariffs on clothing, footwear, and other fashion products would constitute a huge, regressive tax increase. And tariffs on these products are already the highest among manufactured goods, reaching 32 percent for man-made fiber apparel and 67 percent for footwear. Why burden American families even more? And for many of these products, China remains the #1 supplier in the world, with no realistic options for other sourcing destinations that could replace China.

    Trade supports jobs across the global value chain.

    Finally, and perhaps most importantly, these tariffs would have a negative impact on the American jobs created by USFIA members. Today, trade supports high-quality, high-paying design, product development, logistics, sourcing, e-commerce and service jobs, to name a few. In fact, according to studies of our industry’s global value chains, 70 percent of the value of imported clothing remains here in the United States—even if the clothing is manufactured outside of the United States. The Administration should foster, not discourage, the growth of these jobs at America’s most innovative and iconic brands.

    Conclusion

    To conclude, we urge you to leave apparel off the list of products subject to tariff increases. This includes items classified under Chapters 61 and 62 of the U.S. Harmonized Tariff Schedule, as well as other fashion products such as footwear in Chapter 64, home textiles in Chapter 63, purses, bags and luggage in Chapter 42, and accessories like necklaces and earrings in Chapter 71.

    Support fashion made possible by trade—and the jobs we create right here in the United States.

  • USFIA Testifies at USTR's 301 Hearing in August 2018

    United States Fashion Industry Association (USFIA) President Julia K. Hughes testified during the Office of the U.S. Trade Representative’s public hearing on the proposed tariffs on approximately $200 billion worth of Chinese products under Section 301 of the Trade Act of 1974.

    The list includes several products manufactured and sold by the apparel industry, including hats and headwear in Chapter 65 of the Harmonized Tariff Schedule, luggage and handbags in Chapters 42 and 46, and leather and faux leather apparel and products in Chapter 42, as well as other textiles, furniture, feathers, and more.

    “We continue to find it hard to believe that the Administration really wants to impose a tax on the basic household purchases of Americans, and we ask you to reconsider this action. The path forward to change the policies in China that are the subject of the 301 investigation is not to tax consumer products. We continue to believe that the best action is to work with our trading partners, and the Chinese government, to negotiate global solutions,” said Hughes in her testimony.  

    Click here to read the full testimony and press release. 

  • USFIA to Testify Today Against Section 301 Tariffs on Clothing, Home Textiles and Footwear

    FOR IMMEDIATE RELEASE 

    WASHINGTON, D.C. – Today the U.S. Fashion Industry Association joins hundreds of American companies who are speaking out against the Trump Administration's proposal to impose additional tariffs on American families.  Our message is clear --  These tariffs are a tax that will be paid by American companies and ultimately by American consumers.   

    USFIA calls on the Administration to exempt all clothing, home textiles and footwear from these retaliatory tariffs.  Clothing, home textiles and shoes for American families are currently taxed more than $15 billion per year.  And these tariffs already are extremely high -- tariffs on clothing can be as high as 32 percent.  Tariffs are a direct tax on the American consumer—and will affect consumers at all income levels, from the single parent struggling to make ends meet as they purchase back-to-school necessities for their kids, to the consumer of high-end fashion manufactured in the United States, and every American family in between.

    In USFIA’s statement we highlight the fact that these tariffs will hurt American brands, retailers and wholesalers.  Higher prices and lower sales will threaten jobs:  from entry level retail positions to highly paid design, sourcing and e-commerce positions.  

    We also rebut the claims that higher tariffs will bring manufacturing jobs back to the U.S.   USFIA and our members support Made in USA and manufacturing in the U.S., but there is not the capacity to make apparel in the United States today.  “Apparel and textile supply chains are complex, and already involve inputs from multiple countries.  Talking with sourcing executives, they say that it takes anywhere from two to five years to identify and approve a new vendor.” In USFIA’s 2019 Benchmarking Survey, which will be released in July, not a single respondent said that they had found the capacity for production to return to the U.S.  And some respondents said they are worried that the China tariffs will increase costs for their Made in USA products and exports.  

    These tariffs on imports of clothing, home textiles and footwear will do little to punish China for its intellectual property and technology transfer practices but do a lot to harm American fashion brands and retailers as well as consumers of their products.   Let’s find a solution that does not use American companies and American families as the hostages to a trade deal.  

    Click here to read USFIA President Julia K. Hughes’ full testimony as prepared for the hearing. 

    USFIA’s full comments are available here. 

    To speak with Hughes or another industry expert, contact Molly McNulty, USFIA Communications Coordinator, 202-419-0444, This email address is being protected from spambots. You need JavaScript enabled to view it.

     

About

The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade.

USFIA represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. Founded in 1989, USFIA works to eliminate tariff and non-tariff barriers that impede the fashion industry’s ability to trade freely and create jobs in the United States.

Headquartered in Washington, DC, USFIA is the voice of the fashion industry in front of the U.S. government as well as international governments and stakeholders.  With constant, two-way communication, USFIA staff and counsel serve as the eyes and ears of our members in Washington and around the world, enabling them to stay ahead of the regulatory challenges of today and tomorrow. Through our publications, educational events, and networking opportunities, USFIA also connects with key stakeholders across the value chain including U.S. and international service providers, suppliers, and industry groups.

Learn More About USFIA          Learn About the Fashion Industry        Attend Our Events

 

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2024 USFIA Fashion Industry Benchmarking Study

This is the eleventh USFIA Benchmarking Survey and again fashion industry sourcing executives face a litany of challenges. Concern over the economy and inflation, as well as eliminating forced labor, continue to be top concerns in the U.S. fashion industry. This year's respondenents also report an elevated level of concern about the impact of shipping and supply chain disruptions as well as geopolitical tensions.

New for this year is a sharp increase in sourcing executives who are concerned about the protectionist trade policy agenda in the United States, with 45% ranking it a top-5 business challenge, compared with just 15% last year.

Download the complete study here, and see the highlights below:

 2024 USFIA Benchmarking Report Figure 1-1B


This year's survey respondents were more optimistic than last year, bucking a 2-year trend.

 


India is the new rising star for Asian sourcing bases, surpassing Bangladesh for the first time and landing in the top spot for where companies want to expand sourcing.


This year, survey respondents underscore the importance of immediate renewal of AGOA before its expiration in September 2025 and extending the agreement for at least another ten years.

2024 USFIA Benchmarking Report Figure 3-9

2024 Mid-Year Sourcing Trends & Outlook Report

USFIA's 2024 Mid-Year Sourcing Trends & Outlook Report is out. Members can log-in to the website to download it here

The top 4 sourcing trends in the mid-year report are:

  1. China remains the top supplier even with diversification.
  2. Asian apparel suppliers continue to dominate sourcing.
  3. Average unit values for apparel continue to fall.
  4. Despite high duty rates, FTAs and preference programs remain underutilized.

The mid-year report includes a special section with global trade data prepared by Dr. Sheng Lu, professor in the Fashion and Apparel Studies Department at the University of Delaware. Dr. Lu's findings include the latest changes in China's market share of world textile and clothing exports.

Pattern #2: While China remained the world’s largest clothing exporter in 2023, rising geopolitical tensions and Western fashion companies’ ongoing de-risking efforts pose increasing challenges to its export outlook.

 China market share of global textile and apparel exports

https://www.datawrapper.de/_/ERwSE/

Top U.S. Apparel Suppliers YTD 2024 by Quantity

When it comes to apparel, Asian suppliers continue to dominate the U.S. market.

The top seven suppliers ship 76% of total apparel imports. We also see more consolidation of imports from the largest apparel suppliers.

China and Vietnam are the only countries with a double-digit market share, and they supply just under one-half (49.8%) of apparel imports.

Chart displaying Top U.S. Apparel Suppliers YTD 2024 by Quantity

 

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