Apparel Online Bangladesh Magazine August Issue 2018 | Page 61

WORLD WRAP
process of imposing tariffs of 10
per cent on an additional US $ 200
billion of Chinese imports.” about China’s IP policies and
practices outlined in USTR’s Section
301 report.
It is interesting to note that the 1,102
tariff lines targeted by USTR focus
mainly on products from industrial
sectors that are in-line with the
‘Made in China 2025’ industrial
policy, which include industries
such as aerospace, information
and communications, technology,
robotics, industrial machinery, new
materials, and automobiles. However, the NCTO stands firmly
in favour of including textile and
apparel products in the future list.
“NCTO is convinced that the Trump
administration’s Section 301 tariffs
would be far more effective if Chinese
apparel and sewn non-apparel end
products were included in the 301 list
because that would benefit the entire
US textile and apparel supply chain,”
said Tantillo. He further added that
if properly targeted, Section 301
tariffs would not only address the
underlying illegal activity on the part
of China, but would also help re-shore
American jobs and boost US exports
to the NAFTA and CAFTA regions.
“That’s why NCTO will continue to
engage the Trump administration
in ways to maximise the benefit of
Section 301 tariffs for the American
industry and workers,” emphasised
Tantillo.
NCTO supports import
tariffs, pushes for textiles
to be included in fresh list
In a significant move, the textile
sector has come out in open
support to the ongoing tariff war
with the National Council of Textile
Organizations (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. “The
Trump administration is right
to confront China’s unfair trade
practices. Section 301 tariffs show
the world that countries who cheat
the Unite d States on trade will
be held accountable,” said NCTO
President & CEO Auggie Tantillo.
This is completely in contrast to
how the retail industry sees the
situation. Earlier on, when the
initial list under Section 301 was
made public, AAFA called it a
victory that no textile and apparel
products are subject to the punitive
tariff proposed by USTR. The June
15 USTR list also removes the
majority of the textile machinery
initially on the retaliation product-
list back in April 2018. Even the
United States Fashion Industry
Association (USFIA) opposed adding
apparel (items classifiable under
chapters 61 and 62 of the HTSUS)
and other fashion products (such as
footwear, handbags, and luggage)
to the retaliation list against China,
arguing that imposing tariffs on
imports of fashion products would
do nothing to solve the concerns
In response, the USFIA argues that
the U.S. tariff rates on apparel and
fashion products are already the
highest among manufactured goods,
reaching 32 per cent for man-made
fibre apparel and 67 per cent for
footwear. “Any additional tariff
would constitute a huge, regressive
tax increase, and have a negative
impact on the American jobs,” said
the Association. The Tax Foundation
predicts 48,585 job losses from the
tariffs Trump has already enacted,
claiming that the job loss figure
would soar to over 2,50,000 if Trump
moves forward with tariffs on another
US $ 200 billion worth of Chinese
products.
Uniqlo's expansion
spree continues,
plans to open first
store in Denmark
Japanese fashion retail giant Uniqlo has announced its plans to
open its first Denmark flagship store in Spring next year. The
move falls in line with the retailer’s ongoing quest to expand its
presence across the European region, with two major openings in
Sweden and the Netherlands scheduled for Fall 2018.
The Denmark store is expected to open at Strøget, the famous
pedestrian shopping street located at the heart of Copenhagen in
2019.
“We are pleased to be announcing our next phase of growth in
Scandinavia with the launch of our first store in Denmark next
year. We look forward to introducing the Uniqlo brand and our
LifeWear concept to Danish customers, who appreciate well
designed, functional and high quality clothes,” Taku Morikawa,
Chief Executive Officer, Uniqlo Europe said in a statement.
The new store would open in a historical building which dates
back to the mid-1700s and was once occupied by clothier Louise
Christine Rasmussen. The space retains elements from the
original classic style of the architecture, which will continue to
feature throughout the interior of the store and also on its façade.
The outlet would be spread out across three levels spanning
approximately 1,400 square metres.
The Denmark opening marks it as the the 9th European country
to host a flagship store by Uniqlo. The retailer already operates
11 stores in the UK, 25 in France, 29 in Russia, 5 in Germany, 3
in Belgium, 2 in Spain with an additional 2 stores coming up in
Sweden and the Netherlands.
The situation has become a matter of
concern. Adding textile and garments
to the list would impact not only the
US market, but also the textile and
garment industry world over. Other
manufacturing destinations in Asia
like India, Bangladesh, and Vietnam
could benefit from the move. But if
Trump decides to extend the tariffs
to other countries, it could be a major
dampener on trade. All eyes are now
on to see how the situation will play
out; as of now, it’s anyone’s guess.
www.apparelresources.com | August 2018 | Apparel Online Bangladesh
61