In 25 years of working with American companies in the fashion industry, Karen Giberson does not remember a more challenging time – and it is about to get worse.
Further reports confirmed that US trade representative Robert Lighthizer would issue a Federal Register notice on Wednesday in order for the tariffs to kick in on"the first minute" of Friday, after accusing China of reneging on some of its commitments in the last round of trade talks in Beijing. While some companies have been able to shift manufacturing away from China to avoid the extra duty, it is not always possible.
Trump’s actions caused consternation among trade and business groups and reaped confusion among many who thought that a deal to end the trade war was imminent. Vice-president of international trade at the Retail Industry Leaders Association, Hun Quach, who worked as an assistant USTR under former president Barack Obama, described the planned tariff increase as “taxes American families pay”, which she said has cost US consumers US$24 billion to date.
Arnold Kamler is the chairman and CEO of Kent International, which sells 3 million bicycles every year to American customers under different brand names through outlets such as Walmart. A large company like Kent has options. Kamler, who has been following the Asian supply chain for decades, having manufactured in the Philippines, Thailand, Taiwan and China, knows the region well.
“We can say that the existing tariffs are damaging to American companies and consumers, and additional tariffs will compound those damages. Both sides need to use this week to make progress on the negotiations, rather than returning us to tariff battles,” he said.