Latest news with #Smoot-HawleyMFN
Yahoo
3 days ago
- Business
- Yahoo
Report: Shoppers Spending $47 More Per Month Under Trump's Tariff Regime
Many brands, retailers and shoppers are breathing a sigh of relief following President Donald Trump's latest tariff announcement. With just hours before a three-month suspension of triple-digit tariffs on China was set to expire, the president opted to extend the pause, instead maintaining a baseline tariff rate of 30 percent on products shipped into the United States. More from WWD EXCLUSIVE: Net-a-porter Alums Raise $1 Million for U.K.-based Egg and Sperm Health Supplement Company Ova Les Tien Debuts First Los Angeles Store Asics' U.S. Wholesale Business Is Booming as Company Raises Full-year Guidance While the last-minute about-face will save importers from paying the bulk of the duties (set in April at the astronomically high rate of 125 percent) for at least 90 more days, neither they — nor their consumers — are getting off scot free. The 30 percent rate set forth by the administration is still among the highest of any of America's global trading partners, and its impact is underscored by U.S. companies' continued reliance on China sourcing. American Apparel and Footwear Association (AAFA) president and CEO Steve Lamar said that while the administration's continued engagement with China — and its extension of the bilateral tariff pause — was the right call, helping avoid 'devastating consequences' like business closures, 'the constant cycle of deadline delays and vague deal terms has kept American companies and consumers stuck in the same holding pattern since April 1.' 'This pattern has and continues to stifle innovation, strategic decision-making, and long-term growth,' Lamar said. As negotiations with China move forward over the coming 90 days, the AAFA is urging the administration to include a non-stacking provision within the trade agreement, similar to the provisions included in deals with Japan and the European Union. That way, U.S. companies and their clientele won't be hit with even higher tariff bills due to existing duties. 'Even with the pause on the worst-case rate, a 30 percent tariff on our largest trading partner is still untenably high. We can't forget that these tariffs are being added on top of existing ones including the nearly century-old Smoot-Hawley MFN tariffs and the Section 301 tariffs,' Lamar said. 'When stacked on top of these already steep tariffs, it amounts to double taxation on hardworking American families for everyday essentials like clothing and footwear.' The point is underscored by recent consumer data. E-commerce marketing automation platform Omnisend released insights this week showing that the average American adult is already paying $47 more per month due to heightened tariffs on U.S. trading partners, amounting to a $12.2 billion-per-year increase in national spending. One in every seven households reported monthly budget jumps of more than $100. Though the bulk of Trump's so-called 'reciprocal' just tariffs took effect last week, 66 percent of the 1,200 shoppers surveyed said they've already clocked price hikes at their go-to retailers. Nearly two-fifths (39 percent) said they noted higher prices when shopping on Amazon, while 30 percent said the same about e-commerce marketplace Temu and 27 percent made similar observations about Walmart. Nearly one-quarter of shoppers said fast-fashion phenom Shein had raised prices. With MSRPs climbing on popular Chinese marketplaces, a significant majority (68 percent) of consumers said they've turned away from the Temus, Sheins and AliExpresses of the world, with higher prices being the trigger for more than one-third of them. More than 40 percent said dropping prices is the only course of action for these firms if they want to regain market share. And despite the heightened prices they referenced on American-owned marketplaces, 64 percent of consumers said they were turning to Amazon and 49 percent said they were looking to Walmart for alternatives. Some are relying on platforms like eBay (17 percent) to fill the void, and far fewer are looking to marketplaces like Etsy (around 11 percent) and Depop or Poshmark (about 6 percent). There may be some preference for Made in the USA, but it's not the primary factor driving consumers' decisions — price is. Case in point: just 43 percent of shoppers said they would be open to paying a premium for American-made products, while 32 percent said they would not. Some shoppers believe turning to North American neighbors will help them get around tariff impacts. According to Omnisend's data, 23 percent of American adults are already purchasing goods from Mexico or Canada because they've found them to be cheaper. More than one-quarter (26 percent) said they plan to do the same if prices continue to rise. As Trump's tariff agenda has become more entrenched and its impacts have trickled down to store shelves, many Americans have found themselves disenchanted with the administration's agenda. Nearly half (49 percent) of surveyed shoppers said the upsides of collecting tariffs aren't worth the cost to consumers. Just over one-quarter (28 percent), by contrast, support the continuation of the policy. The remainder — 27 percent — are 'caught in the middle,' Omnisend analysts wrote, and 'likely adjusting habits day by day.' The president, for his part, isn't backing down despite flagging consumer sentiment and consternation from economists. 'Trillions of Dollars are being taken in on Tariffs, which has been incredible for our Country, its Stock Market, its General Wealth, and just about everything else. It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury's coffers,' he wrote on Truth Social Tuesday afternoon. 'Also, it has been shown that, for the most part, Consumers aren't even paying these Tariffs, it is mostly Companies and Governments, many of them Foreign, picking up the tabs.' Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
Fashion United
3 days ago
- Business
- Fashion United
AAFA's urges Trump administration to add non-cumulative clause for Chinese tariffs
The American Apparel & Footwear Association (AAFA) has issued a response to President Trump's executive order extending temporary tariff relief on Chinese imports for another 90 days. The order, titled 'Further Modifying Reciprocal Tariff Rates to Reflect Ongoing Discussions with The People's Republic of China,' was issued on August 11 and cites ongoing trade talks between the US and Chinese officials as the main reason for the delay, maintaining the current 30 percent baseline rate on retaliatory tariffs against US goods from China. While the AAFA voiced appreciation for the administration's continued engagement with China and the extension of the pause to introduce the heightened tariffs, the association also voiced concerns about the continual delay. 'We appreciate the administration's continued engagement with China and the extension of the pause on heightened tariffs, which will help to avert devastating consequences like product elimination and business closures,' said AAFA President and CEO Steve Lamar in a statement. 'However, the constant cycle of deadline delays and vague deal terms has kept American companies and consumers stuck in the same holding pattern since April 1. This pattern has and continues to stifle innovation, strategic decision-making, and long-term growth.' The AAFA is encouraging Trump's administration to include a 'non-stacking provision,' similar to agreements with Japan and the EU. 'Even with the pause on the worst-case rate, a 30 percent tariff on our largest trading partner is still untenably high,' added Lamar. 'We can't forget that these tariffs are being added on top of existing ones, including the nearly century-old Smoot-Hawley MFN tariffs and the Section 301 tariffs. When stacked on top of these already steep tariffs, it amounts to double taxation on hardworking American families for everyday essentials like clothing and footwear.' The delay caps months of lobbying by AAFA and industry allies for tariff reduction, arguing that the current policy fails to boost domestic manufacturing or protect the sector's 3.6 million American jobs. Meanwhile, two key trade programs, the African Growth and Opportunity Act and Haiti's HOPE/HELP preferences, face a September 30 expiration deadline without congressional renewal.
