secured a decisive victory in the presidential election on Nov. 5. But for many consumers and even industry insiders, the implications of the proposed taxes on foreign-made products remain elusive.’ is the most beautiful word in English language — but a lot of…people around the world are looking to understand what tariffs are,” American Apparel and Footwear Association president and CEO Steve Lamar said at Sourcing Journal’s Fall Summit in New York City.
Josh Teitelbaum, senior counsel for international trade policy at Washington, D.C., law firm Akin-Gump, said the industry should also be formulating a plan for how to deal with new taxes on goods it’s sourcing from overseas. When the first Trump administration implemented Section 301 duties of 7.5 percent to 25 percent on products from China, brands learned how to file for exclusions, how to answer questions about whether they’d tried sourcing from alternative markets and whether certain exclusions on inputs or materials might allow them to bring manufacturing back to the U.S.
According to Lamar, kicking the China sourcing habit is easier said than done; it may even be impossible. And he questions the validity of seeking to sever ties altogether. In the textiles and apparel sector, pulling away from China could lead to a situation wherein China works harder to cultivate export relationships in developing markets where the U.S. has “an interest in trying to have a stronger presence from a geopolitical perspective,” Teitelbaum said — places like Africa and Latin America. “And that harms U.S. interests,” he said.