IMPACT of trade war on the US
Trump has threatened additional 10% tariffs on another $200 billion in Chinese goods if Beijing proceeds with its own retaliatory tariffs.
Economists have warned that a full-blown trade war, especially if it drags on for more than a year, could slow the U.S. economy.
But the industry wants more. Textiles -- like fabrics and yarns -- are the materials used to make everything from clothing to seat belts. And duties on end, or finished, apparel and other goods from China would help domestic manufacturers compete better on price with Chinese companies and generate more orders for U.s.-made textiles, industry leaders say. Trump, however, largely avoided targeting consumer products for fear of upsetting voters who could face higher prices at the mall.
Due to the imposing of new tariff lines on Chinese goods by the US, the result will be significant for the apparel and footwear industries. There will be a general increase in price all through the supply chain. There is expected to be inflation on consumer products in the US Unfortunately, this has to be paid only by the American consumers. It is estimated that more than 84% of the US travel goods are imported from China. This will potentially affect the apparel, footwear, and accessories brands for being expensive and struggle in the US market for being expensive. The items under the apparel section were added in the latest round of tariffs.
On the other hand, retailers are not happy with Trump’s latest tariff move. They think that this crazy strategy would account for $200 billion worth of China products subjected to a tariff that could potentially hit back to harm US families and workers. Again, the Chinese retaliation could destroy ‘millions of US jobs, hurt farmers, a local businessman, and entire community’.
A study from the National Retail Federation (NRF) and the Consumer Technology Association concluded that imposing tariffs of $50 billion on Chinese imports could reduce U.S. GDP by nearly $3 billion and eliminate 134,000 U.S. jobs annually.