PPI’s Ed Gresser, Vice President and Director for Trade and Global Markets, once again highlights how import tariffs unfairly target women’s clothing in his latest trade fact of the week. Building on his Valetines Day trade fact covering higher tariffs for women’s underwear, Gresser’s latest piece looks at women’s and men’s clothing overall, finding that “combining all the categories, tariff rates on women’s clothing are on average 16.7%, 2.9 percentage points higher than the 13.6% average for men’s.”
Gresser also notes that FTAs don’t help much and may even amplify the issue with restrictive and complex rules of origin. The New Democrat Coalition in the House published an eight-point trade policy plan which includes the goal to “advance equity in trade policy by considering solutions to reduce gender bias and regressivity in the tariff system.”
Gresser writes that the findings point to systemic problems with U.S. tariffs for clothing:
What does this all mean in practice? Last year’s tariff payments totaled $4.7 billion on $31.1 billion worth of women’s clothes, and $3.1 billion for $24.2 billion worth of men’s clothes. Or, in more direct terms, markups and U.S. transport and overhead costs mean that the cost of an average shirt or coat roughly quadruples from arrival at the border to the cashier, the tariff system appears to be raising the price women pay for clothes, relative to men, by an average of an extra dollar per garment. Looking at this another way, a 2018 working paper from the U.S International Trade Commission concluded that the higher rates on women’s clothes — their finding, pre-“301” tariff, was 14.9% for women’s clothes and 12.0% for men’s — plus the fact that women on average tend to purchase more clothing than men, meant that buyers of women clothes shouldered an additional $2.77 billion in tariff burden than buyers of men’s clothes. Gender bias in the tariff system accounted for about $1.8 billion extra burden on buyers of women’s clothing as of 2015, and presumably somewhat more now.