The Trump government has delayed tariffs on some items imported from China citing the increased pressure from US companies. Scheduled to be in effect from September 1, the additional burden of tariffs on Chinese items is now suspended until December 15.
According to the U.S. Trade Representative (USTR), Washington will postpone its 10 per cent levy on a number of the $300 billion worth of products, including footwear and apparel inter alia, based on ‘health, safety, national security and other factors’.
The dissent against President Trump imposing tariffs started in mid-June when hundreds of retailers, trade organizations and industry leaders descended on Washington, D.C., to testify at public hearings on Trump’s controversial tariffs over the course of seven days. Companies including VF Corp., Shoe Carnival Inc. and Wolverine World Wide Inc. even rallied against taxes that could hurt businesses and US economy in all.
Terming the tariff game as a ‘destructive plan’, Rick Helfenbein, president and CEO of the American Apparel and Footwear Association stated, “Make no mistake, these tariffs, including the ones imposed in earlier tranches, are paid by U.S. companies. They create costs and uncertainty, forcing companies to delay or scuttle hiring and investment decisions and, ultimately, hit the U.S. consumer.”
He further administered the idea of rebalancing and reforming the partnership with China.
The delayed tariffs would also take place after the crucial holiday shopping season for retailers, in hope that prices do not rise at retail during the holiday.
Footwear Distributors and Retailers of America president and CEO Matt Priest is also of the opinion of keep delaying the tariffs until the entire situation improves.
The increased cost within supply chain have to be borne by consumers, making items much costlier. Domestic manufacturers which sources raw materials from China would also be affected. Loss of jobs could also be seen in near future because of the increased cost of production, with several companies already making attempts to relocate their supply chains to neighboring countries like Vietnam, Indonesia and Mexico.
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