Fashion Intel & Analysis
The Trump Administration announced last month that as part of the Executive Order imposing sanctions against China, imports from Hong Kong would now be considered as products of China. The Federal Register notice implementing that change will be published tomorrow. There is a 45-day transition period, which we realize is shorter than many companies had hoped. There remain many questions about the implementation of this major change and we hope to provide additional details soon.
The role of tariffs is in the news again. During a visit to a Westinghouse plant yesterday, President Trump talked about his commitment to American workers, and one of his talking points was that he will continue to use tariffs. He also signaled that the Administration will be issuing more Executive Orders related to trade. He said: "My fifth promise to American workers is to bring back American jobs in factories using every tool at my disposal, including tariffs — I love properly-put-on tariffs, because they bring unfair competitors from foreign countries to do whatever you want them to do — countervailing duties, and new trade deals based on the principle of fairness and reciprocity."
"And I’ll be signing something very important. Watch over the next week. I think you’ll be very proud of your President. I’m going to be signing something that’s very important over the next, probably, week. And it’ll have a tremendous impact on fairness and trade."
During an interview with NPR, Joe Biden was asked what he would do about the tariffs on China and his response criticized the impact on the economy. “Would you keep the tariffs?” “No. Hey, look, who said Trump’s idea’s a good one?” said Biden. “Manufacturing has gone into a recession. Agriculture lost billions of dollars that taxpayers had to pay.” Later a campaign aide released a statement that Biden will "reevaluate the tariffs upon taking office." Clearly the issue of China policy and the reliance on tariffs will remain a topic of debate during the presidential campaign.
In a notice posted on their website, the Office of the United States Trade Representative (USTR) announced 10 product exclusions that appear on List 4 of the China 301 tariffs. Included in the list are some consumer goods. The product exclusions will apply as of September 1, 2019 and extend through September 1, 2020.
Decorative glassware, each consisting of a rectangular glass box in a brass frame with a hinged top, measuring at least 11.5 cm but not more than 21.5 cm by at least 16 cm but not more than 26.5 cm by at least 3 cm but not more than 8 cm, weighing at least 500 g but not more than 1.5 kg, valued over $5 each (described in statistical reporting number 7013.99.9000 prior to July 1, 2020; described in statistical reporting number 7013.99.9010 or 7013.99.9090 effective July 1, 2020)
Decorative glassware, each piece consisting of a blown-glass globe, measuring atleast 65 mm but not more than 150 mm in diameter, containing a sculpture, waterand artificial snow, with a poured-resin base, weighing at least 800 g but not morethan 3 kg, valued over $5 (described in statistical reporting number 7013.99.9000 prior to July 1, 2020; described in statistical reporting number 7013.99.9090 effective July 1, 2020)
The Office of the United States Trade Representative (USTR) announced it will extend a list of 266 product exclusions set to expire today, August 7, 2020. The products appear on List 3 of the China 301 Tariffs and include some travel goods and textile products, which are listed below. The extensions will extend through December 31, 2020.
cm, weighing not more than 1 kg
at least 35 cm but not more than 75 cm in height, at least 19 cm but not more than 34
cm in width, and at least 5 cm but not more than 26 cm in depth (described in
statistical reporting number
98 cm by 52 cm by 17 cm, weighing not more than 7 kg, with wheels
weighing not more than 7 kg
4202.92.3131, Stuff sacks with outer surface of textiles of man-made fibers, each measuring 77.5 cm
or more but not over 127.7 cm in circumference, cylindrical in shape with a single
compartment, a drawstring closure at one end and a strap at the other end of the sack
4205.00.8000, Covers, of leather, designed for use with telecommunication devices
noil silk, the foregoing not printed, not jacquard woven, measuring over 127 cm in
noil silk, the foregoing not printed, not jacquard woven, measuring 107 cm or more but
not over 127 cm in width
cm in width, weighing more than 170 g/m²
170 g/m², measuring not more than 310 cm in width
textured polyester filaments, dyed, measuring 249 cm in width, weighing more than
more than 170 g/m², measuring not more than 310 cm in width
filaments, weighing not more than 170 g/m², measuring not over 310 cm in width
weighing more than 170 g/m², measuring not over 310 cm in width
dyed, containing textured filaments, weighing not more than 170 g/m², measuring
greater than 274 cm in width
measuring not more than 310 cm in width
percent of cotton staple fibers, not napped, weighing more than 200 g/m² and
exceeding 310 cm in width
70 g/m², with a smooth or embossed texture (not impregnated, coated or covered with
material other than or in addition to rubber, plastics, wood pulp or glass fibers), in rolls
that are pre-slitted in lengths of not less than 15 cm to not more than 107 cm, for use
in the manufacture of personal care wipes
than 160 cm by 250 cm, weighing more than 1,800 g/m² but not more than 3,000 g/m²
steel springs, each measuring at least 44 cm by 45 cm but not exceeding 56 cm by 59 cm
percent of nylon, weighing less than 115 g/m² and measuring 289 cm in width
6001.10.2000, Long pile knit fabrics, of acrylic pile on polyester ground, valued not over $16 per m2
6003.40.6000, Knitted or crocheted fabrics of artificial staple fibers derived from bamboo
Today President Trump signed a Proclamation that will re-impose the 232 tariffs on imports of aluminum from Canada. The additional tariffs are effective August 16th and will be set at 10 percent. During a speech at a factory in Ohio Trump said that "Canada was taking advantage of us, as usual." You can read the full Proclamation here.