By Doug Palmer

"Tariffs on clothing, footwear and other fashion products would constitute a huge, regressive tax increase," Julia Hughes, president of the United States Fashion Industry Association, told the panel. "For many of these products, China remains the No. 1 supplier in the world, with no realistic options for other sourcing destinations that could replace China."...

But the fashion sector argues that it supports "higher-paying" jobs in areas such as design, product development, logistics, sourcing and services even if major cutting and sewing operations have mainly moved outside the United States.  

"Retail operations alone support 42 million jobs — or 1 in 4 American jobs," Hughes said.

Click here to read the entire article on the Politico Pro website.

By Shefali Kapadia

Upon written and oral public comments, officials removed about 300 tariff lines from the original list and did not add any additional items or categories. The total value of goods, however, remains around $200 billion. Despite the removal of some textile and apparel products from the list, many products from those categories as well as accessories were still subject to the new tariffs. Industry associations chimed in following the announcement to express their opposition to the tariffs.

"These tariffs on imports of textiles, apparel, and accessories 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," said United States Fashion Industry Association President Julia K. Hughes.

Click here to read the entire article on the Retail Dive website.

By Tara Donaldson

Now that the U.S. will officially add a 25 percent tariff on foreign steel imports and 10 percent on aluminum, the country could end up in an even worse position on trade. For one, the E.U. has threatened levying a 25 percent tariff on Levi’s jeans coming from the U.S.—and the region isn’t alone in its line of thinking.

“These tariffs aren’t quite as high as tariffs on the fashion industry, which can reach 32 percent on some products. However, we know these tariffs will be catastrophic for the U.S. economy and jobs,” the United States Fashion Industry Association said in a statement following the tariff announcement Thursday. “We’re not being partisan or subjective; it’s Trade Policy 101—and we can expect widespread net job loss in the United States as a result, according to early studies, not to mention regressive taxes on American consumers. This is not the way to support American companies and jobs, and definitely not the way to participate in the global economy.”

Click here to read the entire article on the Sourcing Journal website.

By Tara Donaldson

During Monday’s fireside chat at the opening of Canada’s Apparel Textile Sourcing show, which was streamed via Facebook Live, Julia K. Hughes, president of the United States Fashion Industry Association (USFIA), said “From a U.S. perspective, I think it’s a bit of a new normal.”

Once countries start pointing to national security concerns as the reason for implementing new tariffs, the door opens for making a case that nearly anything could be considered a national security threat, Hughes explained, noting a concern that the world could be in store for ongoing bouts of U.S. protectionism expressed in tariff form.

Click here to read the entire article on the Sourcing Journal website.

By Shefali Kapadia 

What started with a few taxes on solar panels and washing machines has escalated to a trade battle affecting industries well beyond home appliances and energy. 

With more and more tariffs tossed between the U.S. and its trading partners, including an announcement of duties on $200 billion worth of imports from China, "U.S. fashion brands and retailers are justifiably concerned," the study said.

Click here to read the entire article on the Supply Chain Dive website.

By Edwin Lopez

That, and the fact many U.S. allies have pledged to retaliate against the tariffs, targeting unrelated products like whiskey (a political choice to punish GOP leadership.)

"While our members don't import a lot of steel or aluminum, these tariffs could result in disastrous consequences for them," the U.S. Fashion Industry Association said in a statement. "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."

Click here to read the entire article on the Supply Chain Dive website.

While we are eagerly awaiting the outcome from the G20 meetings between President Trump and other world leaders—particularly President Xi—we want to share some insights about the impact of the tariffs on the U.S. economy. Warning: you may need something a little stronger than eggnog after you read these new studies. 

In a new study commissioned by Koch Industries and conducted by ImpactECON, President Trump’s tariffs could cause the U.S. GDP to fall nearly 2 percent in 2019. The effect on consumers is even harder, especially in the leadup to the holidays, with the average U.S. citizen expected to lose $915 in 2019, or close to $2,400 per household. Meanwhile, “all countries, except the U.S. and China, gain from U.S. trade actions and responses and increase GDP.” It’s worth noting that despite Koch’s conservative viewpoint and long-time support for Republican candidates, Koch Industries and the Koch network has been very critical of President Trump’s trade agenda.

Speaking of the holidays, Tariffs Hurt the Heartland says new tariffs on Christmas lights arrived just in time for the season. The majority of Christmas lights sold in the United States are hit by the Section 301 tariff dispute—and there are no major American Christmas light manufacturers, either. According to the findings,

[O]ver 80% of US imports of Christmas lights from the world in 2017 came between August and October as companies stock up for the holiday season, with China accounting for about 85% of those imports. Already subject to 8% Most Favored Nation (MFN) tariffs, the Section 301 dispute added another 10% tariff, to 18% overall. These took effect on September 24 – right in the middle of peak season for increasing holiday inventory. Lights could become even more expensive next Christmas, as the Section 301 tariff will increase to 25% (or an overall rate of 33%) on January 1, 2019.

Meanwhile, in a White House press conference earlier this week, Larry Kudlow, Director of the National Economic Council, said, “Tariffs represent only a small percentage of the U.S. economy. Our economy's in very good shape right now. And when you multiply through whatever numbers you want to use–$250 billion, or tack on another tranche, which may or may not happen, at a 10 percent tariff rate or more–it's really just a fraction of our economy.”

We’re sure Santa might have a different view!

Just-Style published an article titled "Trade groups want China tariffs scrapped to offset virus impact". The article discusses a letter sent to Larry Kudlow, director of the US National Economic Council, calling for the immediate removal of China 301 tariffs on a number of consumer goods. USFIA and over 23 industry groups signed on to the letter. According to the industry groups who signed on to the letter, tariff removal should part of an "emergency response" by the Government as the economic impact of COVID-19 worsens.  The letter states "Such a move would instantly put billions of dollars back into the US economy. This action also would provide certainty to American companies and encourage new hiring and new investment – moves that are now on hold given the unprecedented uncertainty facing the US economy. American consumers would also see benefits given that these tariffs act as a tax that often show up at retail in the form of higher prices. The lifting of these tariffs also requires no congressional action."

Read the full article here. 

Textile Development Memo for April 11, 2011

In this TDM:

• Treasury Delays Currency Report
• EU Removes Retaliatory Tariffs on Apparel
• Mexico TPL Projected to Embargo Soon
• Ways and Means Subcommittee Holds Hearing on Korea FTA; Administration Says Implementing Legislation Almost Final
• House Commerce Subcommittee Hearing Reveals No Consensus on CPSIA Revisions
• American Shipper Releases Environmental Sustainability Benchmark Study

By Tara Donaldson 

United States trade relations continue to be a roller coaster ride for companies caught in the fray.

“I think it’s fair to say that the administration has gotten China’s attention via these measures,” Bill Jackson, Assistant U.S. Trade Representative for Textiles, said speaking at the United States Fashion Industry Association’s (USFIA) Apparel Importers Trade and Transportation Conference in New York City Thursday. “But I believe that we are working towards the conclusion or resolution of that announced in the phase one agreement that folks are hoping to see very soon.”

Click here to read the full article on Sourcing Journal's website. 

WASHINGTON, DC – This evening, President Trump announced that he would move forward with tariffs on an additional $200 billion worth of goods from China, including several fashion and consumer products.

The United States Fashion Industry Association (USFIA) strongly opposes this 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. We urge the Trump Administration to reconsider this decision, and we will continue to join with our members and other industry groups to fight back on this tax on consumers and businesses.

“These tariffs on imports of textiles, apparel, and accessories 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,” said USFIA President Julia K. Hughes. “These 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.”

Read USFIA’s testimony on this list of tariffs: https://www.usfashionindustry.com/policy/global-trade/usfia-testifies-at-ustr-s-301-hearing-in-august-2018

Read USFIA’s statement and post-hearing testimony about this list of tariffs: https://www.usfashionindustry.com/press/press-releases/usfia-files-post-hearing-comments-on-third-list-of-china-301-tariffs

Read about national, multi-industry efforts to fight these tariffs: https://www.usfashionindustry.com/press/press-releases/u-s-fashion-industry-joins-national-campaign-to-fight-taxes-on-consumers

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.

Today, USFIA President Julia Hughes is scheduled to testify during the Office of the U.S. Trade Representative’s hearing on the proposed tariffs on approximately $200 billion worth of Chinese products under Section 301 of the Trade Act of 1974. She will testify on a panel with the National Retail Federation (NRF), China Chamber of Commerce for Import and Export of Textiles, and Jo-Ann Stores, LLC, among others. Her testimony as prepared for delivery is available here.

Joann Stores has launched a campaign to stop the “Made in America Tax” (@made_tax), the proposed tariffs on fabrics and craft supplies. In addition, the Juvenile Products Manufacturers Association has started a #nobabytariffs campaign on social media and are using the following graphic. We encourage companies to engage on social media if possible.

Meanwhile, yesterday, Hughes spoke to National Public Radio’s Marketplace about the impact of tariffs on fashion products, particularly the impact on consumers. You can hear the entire interview at https://www.marketplace.org/2018/08/22/business/fate-fashion-trade-war

The United States Fashion Industry Association (USFIA) joined a multi-industry association letter to Senate Finance Committee and House Ways & Means Committee leadership to express concern about U.S. trade policy, specifically “the growing willingness of the current Administration to use tariffs (and the related use of absolute import quotas) as a major policy tool in an increasing number of trade disputes with our allies.” The letter asks Congress to “to consider a robust congressional response to the Administration’s actions. We strongly support increased congressional oversight by your Committees, the holding of expeditious hearings on the President’s use of delegated trade authority, and consideration of whether amendments to existing delegations of authority are necessary to clarify Congress’ important role in the execution of the nation’s trade policy.” The letter is available here.

United States Fashion Industry Association (USFIA) has spoken out against the Trump Administration decision to initiate process to impose 301 tariffs on clothing, home textiles and footwear. Headquartered in Washington, D.C., USFIA is the voice of the fashion industry in front of the US government as well as international governments and stakeholders. 

Read our full statement on Knitting Industry's website. 

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.