The Changing Landscape of World Textile Trade
Tariff Threats
Biggest shock to apparel brands was
the use of emergency powers to threat-
en new tariffs on imports from Mexico
-- a Free Trade Agreement partner
•
•June
July10 – 5%
1 – 10%
•
•August
September1 – 15%
1 – 20%
•October1 – 25%
Tariff Threats Today
USTR is using GSP – program in
place since 1974 giving duty-free
access to some products made in
developing countries – to take ac-
tion against countries that are “un-
fair”
• Turkey lost GSP on May 16
• India lost GSP on June 5
Strategies for Fashion Brands and
Retailers to Minimize the Impact of
Trade Uncertainty
•Sourcing Diversification
•Product Exclusions
•Technical Options
- Classification
- Valuation
- Low-Value Shipments (E-
Commerce Direct to Consumer)
Affected Fashion Products are:7.5% Tariffs on List 4A.....but imports are falling
•
•
•Chapter 61 – Knit Apparel
Chapter 62 – Woven Apparel
Chapter 63 – Home Textiles•-2% decrease in 2019
•China is the dominant supplier to the
United States in most categories:
•
•Chapter 64 – Footwear
Plus wood, plastic, electronics
Boxes, for packing of goods, of
plastic (3923.10.90)
•Bags, for packing of goods, of plas-
tic (3923.29.00)
•Plastic rainwear valued under $10
(3926.20.60)
•Patent leather (4114.20.30)
•Leather Handbags (4202.21.90)
•Leather Apparel (4203.10.40)
•Leather Gloves (4203.29)
•Wool Yarn (5106.10.00)
•Cotton (5201)
•Hats and headgear (6504)– 29% of fabrics
Sourcing Trends– 67% of made-ups
Trend #1:– 16% of yarns
(ranks 2nd to Korea)China remains the top supplier …
Share of U.S. Apparel Imports from China by Fiber
25% tariffs on List 3
•– 39% of apparel
NCM-MARCH 2020
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