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Tariffs threaten US-China apparel and textiles sector

The US is hoping to use tariffs to bring about a deal with China that would, among other things, address long-standing concerns related to forced technology transfer and intellectual property rights. Initially, tariffs were on high-tech goods and equipment while avoiding consumer items. The idea was to concentrate pain on China without exposing US consumers. But the latest list contains a wide variety of consumer products.

Diaper bags, baseball caps, fabric, and metal snaps are all on the front lines of the trade war. Those items, and many other fashion articles and accessories, will be subject to an additional 25 per cent tariff when imported from China. They join about $200 billion worth of products — including special chemicals, boats, wood flooring, furniture, bicycles, medical and surgical equipment, sports gear, snow blowers, art, and more — that are also in danger of additional tariffs. Apparel, footwear, and other home textiles have so far escaped being targeted.

The US tariff approach has triggered retaliation from China, and other countries, which have proposed import taxes on a wide range of American-made products. While much of this retaliation has been targeting US agriculture, a surprisingly high number of US-made textile and fashion items have also been included.

 
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