Neither the US nor China looks likely to back down in the trade war.
The US imports nearly all of its clothing and footwear, and China is by far the largest source. In 2016, about 36 per cent of US imports of textiles and clothes came from China, and about 60 per cent of footwear. The US already places some of its highest tariffs on clothing and footwear, so the industry is especially sensitive about the prospect of more duties.

The tariffs have so far increased the US trade deficit with China.

The US has already put a ten per cent tariff on a large number of Chinese goods, including certain accessories and footwear. The tariff is set to climb to 25 per cent if China retaliates. Clothing has been spared thus far, but with nobody backing down, higher tariffs on more and more Chinese products, including clothing, look inevitable.

But in the process, because of the way tariffs get factored into the final price shoppers pay for imported goods, the tariffs will raise prices for US consumers.

China has indicated it will increase export tax rebates for Chinese firms to reduce the pain of a trade war. It could also resort to non-tariff barriers.