Apparel Online Bangladesh Magazine August Issue 2018 | Page 60

WORLD WRAP THE LATEST NEWS HAVE YOUR SAY For the latest news on apparel and textile, make sure that you visit https://apparelresources.com/top-news/ Write to Apparel Resources, B-32, South Extension-1, New Delhi (110049), India or email: [email protected] Textile manufacturers encourage US to impose additional tariff on Chinese goods; Retailers nervous of implications T he ongoing trade war between the US and China has sparked off debate on the long-term outcome of tariffs and counter tariffs on both sides and the common consumer alike. As early as March this year, 24 of the biggest retailers in the US, including Walmart, Target, Best Buy, Macy’s, Abercrombie & Fitch Co, American Eagle Outfitters, JCPenney, and Kohl’s Department Stores signed a letter sent to the President, requesting him not to impose heavy tariffs on China, as it would not only affect business, but would also cripple the average American for whom the prices of household basics like clothing, shoes, electronics, and home goods would jump manifold. American Apparel and Footwear Association (AAFA) has supported the argument, claiming that a tariff on textile and apparel products would be a hidden tax on US consumers, particularly since China represents such a large source of US imports of these products. Economists too warned against the long-term implications, but President Trump went ahead with his plans and in June 2018, the Trump Administration announced the imposition of a 25 per cent punitive tariff on a list of Chinese goods based on the results of its Section 301 investigation, which targeted against China’s unfair trade practices related to the forced transfer of American technology and intellectual property. In a tweet earlier this year, Trump categorically justified his crack down on ‘unfair’ trade, stating – “When a In a significant move, the textile sector has come out in open support to the ongoing tariff war with the National Council of Textile Organisations (NCTO), praising the Trump administration’s tariff announcement. Further, the NCTO has also suggested that any future list made for tariff purpose under Section 301 should include finished textile and apparel products. country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down US $ 100 billion with a certain country and they get cute, don’t trade anymore – we win big. It’s easy!” Trump is equating higher tariffs to lower imports and hence, more jobs coming back to the US. Tariffs and counter tariffs… The US Trade Representative (USTR) clarified that the additional duty imposed would initially apply to 818 lines of products, which started July 6, 2018 and will cover approximately US $ 34 billion worth of imports from China. In its communication, the USTR also added that a final determination on the second set of 284 proposed tariff lines, which would cover approximately US $ 16 billion 60 Apparel Online Bangladesh | August 2018 | www.apparelresources.com worth of imports from China, would be announced shortly. In a swift and ‘tit-for-tat’ response to the US action, China’s Ministry of Commerce (MOFCOM) quickly announced its proposed counter- measures, including a 25 per cent punitive tariff on approximately US $ 34 billion worth of US soybean, autos, and fruits, also effective from July 6, 2018, adding that it was prepared to impose the punitive tariff on another list of products, which covers approximately US $ 16 billion worth of medical devices, chemicals, and energy imports from the United States. This counter move was not appreciated by the US Government and an official statement announced, “As a result of China’s retaliation and failure to change its practices, the President has ordered US Trade Representative (USTR) to begin the