Delta Galil, Levi Strauss & Co, PVH Corp, and VF Corp are among 138 companies – and more than 190 executives and designers – that have sent a letter to US President Donald Trump opposing the use of tariffs in the trade dispute with China.
The letter, dated yesterday (17 June), was sent in tandem with a full day of testimony against the use of tariffs on US imports of apparel, footwear, travel goods, and related products from China by businesses in the apparel and footwear space.
The Office of the US Trade Representative (USTR) will hold a near two-week-long hearing on the proposed 25% tariffs on US$300bn in goods.
In the letter, the executives note they share Trump’s frustration that a trade deal has not yet been settled with China and agrees that more needs to be done to ensure that China – like all nations – operates on a level playing field with the United States.
However, the group says it is “strongly opposed” to using textile, clothing, accessories, and shoe tariffs as a “bargaining chip” in the effort to secure that deal.
“The mere threat of these tariffs has already upended supply chains in our industry as executives are scrambling to find ways to mitigate the very real damage that an additional 25% tariff will have on our industry and our four million American workers. This challenge is made even more difficult given the very high tariffs this industry already pays,” the group said. “In 2018, our industries paid more than $18bn in tariffs, representing nearly 40% of all tariffs collected by the US government, yet we accounted for only about 6% of all US imports. We ask you to work with our allies and build international support for a broader strategy that doesn’t rely on tariffs borne by US companies and consumers.
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By GlobalData“As you may know, China currently accounts for about 69% of our footwear and about 42% of the apparel sold in the United States today. While our industry has begun to diversify away from China in recent years, and will continue to do so in the future, supply chains cannot move fast enough or find suitable alternatives in the near term to mitigate the costs associated with these tariffs.”
It adds all companies in the apparel and footwear industry will be harmed by this action, noting the new tariffs will mean higher prices for US consumers, lower US apparel and footwear sales, and lost jobs for American workers in the US apparel and footwear industry.
“The short-term prognosis for these sectors due to these tariffs is catastrophic.”
“The short-term prognosis for these sectors due to these tariffs is catastrophic.
“It is our strong hope, and fervent request, that you can negotiate this deal without imposing new taxes on the US companies, the US workers, and the US consumers who you are trying to protect with this new agreement.”
In his testimony to the administration, American Apparel & Footwear Association (AAFA) president and CEO Rick Helfenbein reiterated these concerns saying that the net result would be a tax on US consumers and on US manufacturers.
“Any tariff on these consumer goods – that are used by every American – will end up hurting US consumers, in addition to the companies and workers who support them. We expect prices to go up, sales to go down, and jobs to be lost,” he said.
Yesterday’s letter follows a similar address by a coalition of 661 US companies and associations which united to urge the Trump administration to avoid tariff escalation and reach a resolution with China.
Retailers Gap Inc, J Crew, and JC Penney were among the signatories of a letter addressed to the US President from Tariffs Hurt the Heartland, the national campaign against tariffs supported by more than 150 trade associations representing retail, tech, manufacturing and agriculture.
