Fashion Intel & Analysis

As you know, this weekend President Trump and President Xi declared a "truce" in the trade war.  No new tariffs will be imposed on Tranche 4 of the 301 investigation, at least for the time being.   Unfortunately the tariffs already in place on leather products, handbags, hats and other consumer products will remain in effect.  

Join USFIA for our webinar on the China tariffs today. USFIA Washington Counsel David Spooner will provide an update and will also review what companies need to do to prepare to request Product Exclusions for imports that are on Tranche 3. Click here to register.

ITC Announces Workshops to Help Companies Prepare to File Miscellaneous Tariff Bill Requests 

The U.S. International Trade Commission is offering a series of workshops to help companies prepare for the 2019-2020 petition cycle for Miscellaneous Tariff Bill requests. Each workshop is available via in person and webinar format. The schedule can be found below, and we will share registration information as it becomes available. 

MTB Kick-Off and “Welcome Back”

Wednesday, July 10, 2019 

  • Overview of the MTB process
  • What’s new in the upcoming 2019-2020 cycle
  • MTB 2020 Timeline
  • How to prepare for a successful filing

Writing a Good Article Description: Textiles and Footwear Articles

Wednesday, July 24, 2019 

  • A USITC specialist will provide tips and advice on writing an acceptable article description for textiles and footwear articles.
  • Take advantage of the opportunity to ask questions about administrability issues and HTS nomenclature for these articles.

Writing a Good Article Description: Chemicals and Molded Plastic Articles

Wednesday, August 7, 2019

  • A USITC specialist will provide tips and advice on writing an acceptable article description for chemicals and molded plastic articles.
  • Take advantage of the opportunity to ask questions about administrability issues and HTS nomenclature for these articles.

Writing a Good Article Description: Machinery and Electronics Articles

Wednesday, August 21, 2019

  • A USITC specialist will provide tips and advice on writing an acceptable article description for machinery and electronics articles.
  • Take advantage of the opportunity to ask questions about administrability issues and HTS nomenclature for these articles.

Today wraps up the seven days of hearings on the China tariffs. More than 300 people traveled from near and far to testify and share stories about how the additional tariffs impact American companies, industries, and consumers. In case you missed it, USFIA testified yesterday and called on the Administration to exempt all clothing, home textiles and footwear from the retaliatory tariffs. In addition to USFIA, apparel, footwear, and consumer product companies continued to speak out in opposition to the tariffs in the final two days of the hearings.  The 301 Committee heard a lot about why infantswear and childrenswear and other important consumer products should be exempt from any additional tariffs. 

Companies spoke about how imposing tariffs on all imports from China will harm their companies and employees, jeopardizing profit and American jobs, while minimally affecting Chinese businesses which are the target of the tariffs. Many were frustrated that they found their products back on the proposed tariff list after being excluded from the first three lists and emphasized that, in addition to hurting American companies, tariffs harm American consumers.

The committee continued to question speakers about the ability to find alternative sourcing options to which speakers all answered similarly; there are no alternatives to replace China. Companies have been seeking ways to diversify their supply chains but shifting a supply chain requires manufacturing capacity, availability of raw materials, regulatory compliance, and time.

Special thanks to all USFIA members and friends who have filed comments, signed an industry level, and testified in person this week in DC.  USFIA will continue to speak out against the tariffs and we will continue to provide updates on the situation.  

While the headlines may not focus on this part of President Trump's interview with Fox Business, it is clear that tariffs remain a priority.  In advance of heading to Asia and the G-20 meeting, as well as a meeting with Chinese President Xi, President Trump makes clear that he wants to continue to use tariffs as a foreign policy tool. 

In the interview Trump said he’s ready to impose another round of tariffs on Chinese goods, saying there’s an additional $325 billion that’s “ripe for taxing”. He hinted the goods would be hit with a 10 percent tariff, “Phase 2 doesn't have to be 25 percent,” he said. “It can be 10 percent. Which people can absolutely handle. But our people aren't going to pay for that either.”

Trump also creates a new level of uncertainty talking about Vietnam as a future target.  He said additional tariffs on China would cause companies to diversify sourcing, some moving to Vietnam. “Well a lot of companies are moving to Vietnam, but Vietnam takes advantage of us even worse than China,” he said. “So there's a very interesting situation going on there.” When asked if he might use tariffs as a tactic against Vietnam, Trump said, “we're in discussions with Vietnam,” which he called “almost the single-worst abuser of everybody.” He continued to say we’ll start working on Vietnam, but the focus is China. 

We will be discussing these looming tariffs and more at USFIA’s Washington Trade Symposium on July 17 on Capitol Hill. Register now to hear the latest updates from our Washington Insiders.

U.S. Customs and Border Protection Acting Commissioner John Sanders will step down effective July 5th. CBP has not yet issued an official statement and there are no indications as to who may replace Sanders.  Kevin McAleenan, the confirmed CBP Commissioner, is currently serving as the acting Secretary of the Department of Homeland Security.