Tariff Escalations, Calculations & the Impact on Consumer Confidence
Date: Tuesday, January 15, 2019
Source: Sourcing Journal
President Trump has said the tariff actions against China have been a necessary tactic to get better trade and intellectual property protections for the U.S. But no matter the goal, the reality is, it created anxiety for the apparel industry which imports 40 percent of its goods from China, and for the footwear industry, which taps China for 70 percent of its goods.
Through it all, the American Apparel & Footwear Association spent the last year helping brands and retailers plan a reaction if these industries—which already face the highest tariffs—should be hit with even more.
“We import about 6 percent of the goods by value in the United States and pay 51 percent of the tariffs that are collected, so when you say this is the year of the tariff, for us every year is the year of the tariff. This year is especially so,” said AAFA executive vice president Steve Lamar.
Watch the video to learn Lamar’s take on what a 25 percent tariff on apparel and footwear products from China would mean for goods produced there—and anywhere else.