The US International Trade Commission (USITC) is considering raising tariffs on apparel imports from Bangladesh, India, Indonesia, Cambodia, and Pakistan. However, this proposal faces strong opposition from four major American trade bodies.

Import share of targeted countries

These five countries account for a significant portion of US apparel import.

These U.S. International Trade Commission (USTC) figures reflect the US imports 20 per cent of apparels from these five Asian countries. Assuming a hypothetical total US apparel import value of $100 billion, the targeted countries contribute:

Thus, based on the import share, around 29 per cent of US apparel imports would be impacted by the tariff increase on these five countries.

Tariff increase arguments for and against

Proponents of the tariff hike argue that a sudden price increase and surplus of garment imports from these five countries disrupt the US market. Also, this will help in protecting domestic apparel industry jobs.

However, the trade bodies argue, an increase will lead to higher costs for US consumers as the tariff hike will be passed on to them and prices will increase. Also, it will be disrupting established supply chains of these five countries, known for well-developed textile industries and could lead to global shortages. Moreover, the US already has high tariffs on apparel.

Indeed, the exact proposed tariff increase is not publicly available. The impact on global supply chain prices is difficult to predict. It does highlight, the complex issue of trade policy and its impact on consumers and businesses. It remains to be seen whether the USITC will follow through with the proposed tariff hike and what the ultimate impact will be.