Tariffs

  • 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.

  • Behind the Seams: Lower Tariffs Could Make Quite a Difference for the High-End Fashion Industry and for Brand-Conscious Fashionistas

    "Only 3% of garment imports come from Europe", says Julia Hughes from the U.S. Association of Importers of Textiles and Apparel who also admits to go on shoe buying sprees during trips to the other side of the Atlantic. But the volume is big enough – and both sides would benefit from a more unified transatlantic market.

    Click here to read the entire article on the Behind the Seams website.

  • Bloomberg: ‘Made in Cambodia’ May Become New Fashion Label With Tariffs Hitting China

    By Uliana Pavlova

    The next designer handbag you buy is less likely to bear a “made in China” label.

    Fashion companies, eager to diversify their supply chains, were already expanding into production sites in Southeast Asia as alternatives to China. Then the trade war happened...

    A study released in July by the U.S. Fashion Industry Association showed that, while all of the companies participating in the survey sourced goods from China, 67 percent expected to decrease the value or volume of production in the country over the next two years. U.S. trade protectionism was listed as the number one challenge for the industry.

    Click here to read the entire article on the Bloomberg website.

  • California Apparel News: European Retaliation Tariffs Planned on U.S. Clothing

    By Deborah Belgum

    Several apparel trade organizations were livid about the steel and aluminum tariffs, which Trump has been threatening for some time and that followed recently imposed tariffs on solar panels and washing machines.

    “We know these tariffs will be catastrophic for the U.S. economy and jobs,” wrote the U.S. Fashion Industry Association in Washington, D.C. “While our members don’t import a lot of steel or aluminum, these tariffs could result in disastrous consequences for them. Already, the European Union is calling out a variety of industries, including iconic American denim and T-shirts, as potential targets for tariff increases of their own.”

    The trade association noted that imports support high-quality jobs for Americans, help U.S. businesses to grow and encourage American companies to do good in other parts of the world.

    Click here to read the entire article on the California Apparel News website.

  • California Apparel News: New Tariffs on Chinese Goods Have Apparel Manufacturers Worried

    By Deborah Belgum

    Taking a more sanguine approach on impending tariffs is Julie Hughes, president of the U.S. Fashion Industry Association, a Washington, D.C., group representing apparel and fashion-goods importers. She doesn’t believe new tariffs are necessarily a done deal. “I don’t think they are going to do anything until the two leaders [of China and the United States] meet. The Chinese are pretty smart,” she said. “I suspect they have a strategy.”

    Click here to read the entire article on the California Apparel News website.

  • China Cuts Tariffs on 800 Imported Products

    The Customs Tariff Commission of the State Council released the 2016 Interim Duty Rates List on 4 December 2015, covering a tariff reduction on 787 tariff codes, including certain apparel, footwear, leather goods and sunglasses. The new rates will be effective from 1 January 2016

    This is in line with the country's policy to relax tariff barriers and intention to boost domestic consumption on consumer and luxury goods. 

    The Interim Duty Rate is a temporary reduction on import duties which lasts for 1-2 years or sometimes longer, depending on market and economic circumstances. 

    There has also been discussions around potential consumption tax adjustments, which has been in talks by the Chinese Government since the 12th 5-year plan. The direction is to impose or increase consumption taxes on products such as those that are environmentally unfriendly, while relaxing consumption taxes on goods that were once considered as "luxurious" but have now become a common commodity. So far there has not been substantial implementation details released in this regard. 

    Having said the above, given the direction of the China Government's policy development, there is possibility that the Government together with China Customs may consider further adjusting tariffs on consumer and luxury products (those that are currently not included in the list).  Based on the usual Interim Duty Rates regime, businesses or lobbying associations may pro-actively lodge Interim Duty Rate applications if they would like a specific tariff code to be reviewed and considered. Customs would often give priority to those products that have the right political, economical and commercial support.

    For more information, contact Queena Lau, Manager in PwC's Worldwide Management Services in Shanghai, at +86 (21) 2323 1156 or This email address is being protected from spambots. You need JavaScript enabled to view it.

  • China Economic Review: Fashion labels shift production from China to Cambodia to avoid US tariffs

    Global fashion companies are accelerating plans to diversify their manufacturing operations away from China to Southeast Asian countries including Vietnam and Cambodia due to the threat of US tariffs on Chinese imports, Bloombergreports.

    Nearly 70% of fashion industry executives say they plan to reduce the percentage of their products sourced from China over the next two years and name US trade protectionism as the largest challenge facing the industry, according to a recent study by the US Fashion Industry Association.

    Click here to read the entire article on the China Economic Review website.

  • China’s Plunging Denim Exports to the US Show Tariffs’ Taxing Toll

    By Arthur Friedman 

    The tariffs on U.S. apparel imports from China keep taking a bigger toll on the country’s role as a denim supplier, while other countries such as Vietnam, Egypt and Nicaragua gain ground.

    China’s declines were most dramatic in September and October, as 15 percent tariffs were imposed on Sept. 1 and many companies took action to get goods in under the wire in July and August, said Julia Hughes, president of the U.S. Fashion Industry Association.

    Click here to read the full article. 

  • Drapers: China tariffs to ‘create chaos’ in US fashion supply chain

    By Tara Hounsela

    Starting next week, President Trump’s administration in the US is imposing $200bn (£152bn) more tariffs on Chinese goods, including several fashion and consumer products – a decision that has been strongly opposed by the United States Fashion Industry Association (USFIA).

    The organisation said the tariffs would add considerable disruption to the supply chain, and would amount to a tax on consumers.

    Click here to read the entire article on the Drapers website.

  • Fibre2Fashion: Study analyses impact of new US tariffs on textile-apparel

    China is the United States’ largest trading partner in the apparel and textiles category. 

    China accounted for 11-30 per cent of all apparel and footwear goods imported to the United States in 2018, down from 30-50 per cent earlier, according to a survey conducted by the United States Fashion Industry Association (USFIA). 

    Click here to read the entire article on the Fibre2Fashion website.

  • Fibre2Fashion: Trump announces tariffs on $200 bn worth Chinese imports

    Meanwhile, the United States Fashion Industry Association (USFIA) strongly opposed President Trump’s action. 

    “In addition to amounting to a tax on consumers, these tariffs will add considerable disruption to the supply chain; the fact that the tariffs will start at 10 percent now and will rise to 25 percent on January 1st creates additional chaos in the fashion industry’s supply chains, which will have a wide-ranging negative impact on consumers, companies, and jobs in the United States, the association said in a statement.

    Click here to read the entire article on the Fibre2Fashion website.

  • Imposed Tariffs Could Result in Inflation, Affecting Luxury Goods

    By Brielle Jaekel 

    While Europe is known more so for the manufacturing of luxury goods, the imposed tariffs on imports from China are so harsh they are likely to affect much of the retail industry. According to the United States Fashion Association, it is likely that these tariffs will drive up prices on products for the American consumer.

    Click here to read the entire article on Luxury Daily's website. 

  • 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: Navarro: Mnuchin comment on China tariffs was ‘an unfortunate soundbite’

    By Anshu Siripurapu

    At a May 17 event hosted by the Washington International Trade Association, ACC President and CEO Cal Dooley and other panelists urged the U.S. to eschew unilateral tariffs and work with allies to pressure China at the World Trade Organization...

    U.S. Fashion Industry Association President Julia Hughes also acknowledged the lengthiness of the WTO process but said it was where the U.S. could have the biggest long-term impact. The conversation should be about “what’s next for the WTO,” she said at the May 17 WITA event.

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

  • 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.

  • Just-Style: New China tariffs will create supply chain "chaos"

    By Beth Wright

    The news has sparked "deep concern" among the US fashion industry and retailers who claim Trump's tariff action is cruel to American interests - particularly since companies are only given one week's notice ahead of the 10% tariff enforcement - and will create "chaos" for the fashion industry's supply chains.

    In a statement, the United States Fashion Industry Association (USFIA) said it "strongly opposes" the tariff action which, in addition to amounting to a tax on consumers, will add considerable disruption to the supply chain.

    Click here to read the entire article on the Just-Style website.

  • Just-Style: Testimony Takeaways - How New China Tariffs Could Hit U.S. Apparel Trade

    By Leonie Barrie 

    The fear of the imminent rise in new tariffs on virtually all U.S. imports from China – including textiles, apparel and footwear – seems to have abated for now. But what’s potentially at stake was set out by dozens of executives from apparel and footwear brands, retailers and importers who took part in a series of recent hearings in Washington. Here’s what they had to say.

    While the 301 tariffs might result in trade diversion from China, it will not lead to more sourcing in the United States. We often hear that argument that uncertainty and disruption to global supply chains will lead to more jobs here in the U.S., as manufacturers return from overseas. That’s not the case for the fashion industry. The manufacturing capacity and the workers are not in the United States. – Julia Hughes, president of the United States Fashion Industry Association (USFIA)

    Click here to read the full article.

  • Just-Style: Trump ramps up the trade war with new China tariffs

    By Leonie Barrie

    The impact of the tariff uncertainty is prompting U.S. fashion sourcing executives to move production out of China in response.

    A recent survey published by the United States Fashion Industry Association (USFIA) found 83% of respondents expect to decrease sourcing from China over the next two years.

    Click here to read the full article on Just-Style’s website.

  • Just-Style: US clothing industry reeling over Trump's tariffs

    By Michelle Russell

    The move, however, has left the US fashion industry reeling. In a statement, the United States Fashion Industry Association (USFIA) said that while the tariffs aren't as high as those on the fashion industry--which can reach 32% on some products--they will be "catastrophic" for the US economy and jobs.

    Click here to read the entire article on the just-style website.

  • Just-Style: US fashion sector mulls tactics to tackle Trump's tariffs

    By Keith Nuthall

    A trade symposium staged last week by the United States Fashion Industry Association (USFIA) united clothing sector executives, compliance chiefs, customs specialists, and government affairs managers.

    It was, USFIA president Julia Hughes told just-style, "an important time for industry executives to meet in Washington DC and hear directly from Congress and administration officials."

    Click here to read the entire article on the just-style website.