November 14, 2024
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US Trade Bodies Oppose Tariff Hike In Apparel Imports

Four US retail and fashion bodies are opposing a proposal to hike tariffs on apparel imported from various Asian countries, since the end consumers will have to bear the brunt of resultant hike in clothing prices.

These four trade bodies include the American Apparel and Footwear Association, the National Retail Federation, the Retail Industry Leaders Association, and the United States Fashion Industry Association.

These garment imports originate from Bangladesh, India, Indonesia, Cambodia, and Pakistan.

The joint appeal was made in a letter to David Johanson, Chairman of the US International Trade Commission (USITC).

The USITC is conducting an investigation under the name of Apparel: Export Competitiveness of Certain Foreign Suppliers to the United States.

The probe is being done on the sudden price hike and the supply glut of garment items to the US markets from the five countries.

In the letter, the associations strongly disagreed with the move to raise the tariff rates on the imports of apparel items.

The organisations argued the US imposes higher most-favoured-nation duty rates on garment products than nearly any other industry which also factors into the cost competitiveness of source countries.

The letter highlighted that despite being ineligible for duty free treatment under the GSP, which excludes apparels, countries like Bangladesh, India, Indonesia, Cambodia and Pakistan remain competitive.

This, according to the coalition, reflects the important role these countries play in the broader supply chain diversification efforts of apparel and retailers.

They argued that higher tariffs on apparel would have the biggest impact on low and middle-income consumers and so imposing tariffs would be counterproductive.

Bangladesh is the third biggest apparel exporter to the US, followed by India, Indonesia, Cambodia, and Pakistan.

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