Blake Harden, Vice President, Retail Industry Leaders Association (RILA), is concerned the Trump administration may impose punitive tariffs on Vietnam as one of its last actions before its influence expires on January 20. As per a Sourcing Journal report, the Trump administration and USTR imposed tariffs against China under Section 301 violations and have threatened to do the same against Vietnam.

American businesses and families have acquired over $72 billion in additional tariffs against China, says Harden. These tariffs have resulted in less money in the pockets of American families, a slowdown in US manufacturing, and decreased competitiveness for American businesses vis-à-vis their European and Asian counterparts. In addition, tariffs on goods from Vietnam will harm the ability of US retailers to compete globally. Meanwhile, David French, Senior Vice President-Government Relations, National Retail Federation also urged the USTR not to place tariffs on Vietnamese imports at the illegal timber and currency practices hearings this week.

French estimated tariffs on import of apparel, footwear and other goods from Vietnam would result in American consumers paying $4 billion to $9 billion more in higher prices. Furthermore, he noted that placing tariffs on imports from Vietnam would punish these companies and may result in sourcing shifting back to China.