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Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
AAFA, FLA urge Jordan to back labour rights programmes
The American Apparel & Footwear Association (AAFA) and the Fair Labour Association (FLA) recently wrote to King Abdullah II of Jordan urging his government and all constituencies to fully support the future of the International Labour Organisation (ILO)-International Finance Corporation (IFC) Better Work Jordan programme and the Workers Centre, supported by ILO. AAFA and FLA members include hundreds of American, European and Canadian buyers. The American Apparel & Footwear Association and the Fair Labour Association recently wrote to King Abdullah II of Jordan urging his government and all constituencies to fully support the future of the ILO- IFC Better Work Jordan programme and the Workers Centre, supported by ILO. The elimination of these programmes would stymie the growth of Jordan's garment industry, their letter said. ILO-IFC Better Work Jordan and the Workers Centre provide essential protections for and critical services to all workers in Jordan's garment industry—both Jordanian workers and foreign migrant workers, the letter, signed by AAFA president and chief executive officer (CEO) Steve Lamar and FLA president and CEO Jeff Vockrodt, read. These provide buyers the guarantees they need to confidently source from Jordan as they provide assurance that international labour rights standards are being independently assessed and consistently met, both wrote. 'Without the guarantees that these two programmes provide buyers, buyers will lose trust that all workers in Jordan's garment industry are employed in safe, ethical, and fair workplaces,' the letter read. The elimination of these programmes would stymie the growth of Jordan's garment industry, the letter said. 'At a time when buyers have to make significant decisions about the future of their sourcing, the disappearance of these programs will create uncertainty that will turn what should be a great opportunity for Jordan into an opportunity lost,' it added. Fibre2Fashion News Desk (DS)
New York Times
15-05-2025
- Business
- New York Times
How 4 Small Business Owners Are Handling Tariffs on China
President Trump lowered his tariffs on China, and Wall Street breathed a sigh of relief. But for many businesses, especially small ones, 30 percent is still a crippling burden. The 145 percent tariff on Chinese goods that was in place for nearly a month was unthinkably high for businesses large and small. But even at the current levels, the overall average tariff rate on imports to the United States remains at its highest level since 1934, according to a report from the Yale Budget Lab released on Monday. Even Walmart, the largest retailer in the United States, said on Thursday that it would have to raise prices on some items in response to tariff-fueled cost increases. And tariffs could rise again if the two countries do not reach a deal within 90 days. The 90-day pause 'may temporarily help unstick the effective trade embargo that has been in place,' Steve Lamar, the chief executive of the American Apparel and Footwear Association, said in a statement. But, he added, the 30 percent tax will still cause prices to soar during the back-to-school and holiday seasons later this year. 'What's needed now is a long-term deal — not just with China but with all our trading partners — so we can predictably make long-term trade, investment and sourcing decisions,' Mr. Lamar said. Unlike large retailers, which can absorb some of the cost of tariffs and have the heft to pressure suppliers, smaller companies that rely on imports from China tend to have minimal leverage to negotiate with their Chinese suppliers — and relatively tight margins. We talked to four business owners about the strategies they are trying as tariffs cut into their bottom line. Cut the cheapest items Marina Rosin Levine is the chief executive of Highline United, a footwear company near Boston, which makes roughly half of its items in China. This week, she visited her supply chain headquarters in the Chinese city of Dongguan, where conversations centered on a key question: Which shoes can it afford to sell in the United States? The answer might at first sound counterintuitive: Only the company's most expensive shoes — those priced at $200 or more — will start to make their way to the United States. Customers who can afford the more expensive shoes can probably afford the additional cost from the import tax. And margins on lower-value items are too tight for the company to import them and turn a profit. 'That means the consumer with lower discretionary income is the one that's going to be impacted the most in terms of what's in stock,' Ms. Levine said. A pair of $400 boots might be available. But $99 Mary Janes probably won't be, at least for now. Consider layoffs The latest easing is not reassuring to Cheyenne Smith. When Mr. Trump imposed triple digit tariffs on China in early April, Ms. Smith, who designs children's rain boots that are made in China, contemplated drastic measures to save money. She considered closing a warehouse in Salt Lake City where she stores items for her brand, called Dakota Ridge, and laying off her work force of three employees. Her costs were rising at the same time that her sales were falling, dampened by customers' dreary outlook on the economy. Insufficient cash flow, especially for the busy holiday season later this year, became a pressing concern. Mr. Trump's move to temporarily ease up on tariffs offered little relief. 'The word 'temporary' scares me,' said Ms. Smith, who was still considering moving her inventory to her garage and laying off her staff. 'I have zero trust in how long this is going to last, or if it will go higher or lower again.' Put new products on pause Luis Prior, who owns Meavia Toys, a small toy company in Corbin, Ky., said the 145 percent tariff rate on Chinese imports was 'completely unsustainable.' Had it stayed in place for several months, it would have meant the end of his business, which designs sensory toys for children with special needs and manufactures its products in China. Shortly after Mr. Trump unveiled his suite of tariffs on April 2, Mr. Prior halted all production of his toys and held his breath, hoping for a reprieve. Now, with the tariff rate down to 30 percent, Mr. Prior said he planned to restart manufacturing some of his most popular toys again and get them to the United States as soon as possible. Still, tariffs at 30 percent mean higher prices for his customers. And a lack of clarity from the Trump administration on what will happen in 90 days has kept his plans to introduce new items on pause. 'It's still a very unstable and unnerving situation for small businesses that rely on China,' Mr. Prior said. 'I don't know what's going to happen tomorrow.' Split the cost Mike Roach, who co-owns a women's apparel store, Paloma Clothing, in Portland, Ore., made plans on Tuesday to approach his vendors that manufacture in China with an idea: He and his wife, the vendor and the vendor's manufacturer would each take a 10 percent hit. Under that arrangement, shoppers would not see prices rise. Whether Mr. Roach's vendors and their Chinese suppliers all agree is an open question. But, he said, the latest easing in tariff levels at least makes the discussion possible. 'There's no mitigation you can do at 145 percent,' Mr. Roach said. 'That is a complete deal breaker.'
Arab News
06-04-2025
- Business
- Arab News
US tariffs will make sneakers, jeans and T-shirts cost more, trade groups warn
NEW YORK: Sending children back to school in new sneakers, jeans and T-shirts is likely to cost US families significantly more this fall if the bespoke tariffs President Donald Trump put on leading exporters take effect as planned, American industry groups warn. About 97 percent of the clothes and shoes purchased in the US are imported, predominantly from Asia, the American Apparel & Footwear Association said, citing its most recent data. Walmart, Gap Inc., Lululemon and Nike are a few of the companies that have a majority of their clothing made in Asian countries. Those same garment-making hubs took a big hit under the president's plan to punish individual countries for trade imbalances. For all Chinese goods, that meant tariffs of at least 54 percent. He set the import tax rates for Vietnam and neighboring Cambodia at 46 percent and 49 percent, and products from Bangladesh and Indonesia at 37 percent and 32 percent. Working with foreign factories has kept labor costs down for US companies in the fashion trade, but neither they nor their overseas suppliers are likely to absorb new costs that high. India, Indonesia, Pakistan and Sri Lanka also got slapped with high tariffs so aren't immediate sourcing alternatives. 'If these tariffs are allowed to persist, ultimately it's going to make its way to the consumer,' said Steve Lamar, president and CEO of the American Apparel & Footwear Association. Another trade group, Footwear Distributors and Retailers of America, provided estimates of the price increases that could be in store for shoes, noting 99 percent of the pairs sold in the US are imports. Work boots made in China that now retail for $77 would go up to $115, while customers would pay $220 for running shoes made in Vietnam currently priced at $155, the group said. FDRA President Matt Priest predicted lower-income families and the places they shop would feel the impact most. He said a pair of Chinese-made children's shoes that cost $26 today will likely carry a $41 price tag by the back-to-school shopping season, according to his group's calculations. Preparing for a moving target The tariffs on the top producers of not only finished fashion but many of the materials used to make footwear and apparel shocked US retailers and brands. Before Trump's first term, US companies had started to diversify away from China in response to trade tensions as well as human rights and environmental concerns. They accelerated the pace when he ordered tariffs on Chinese goods in 2018, shifting more production to other countries in Asia. Lululemon said in its latest annual filing that 40 percent of its sportswear last year was manufactured in Vietnam, 17 percent in Cambodia, 11 percent in Sri Lanka, 11 percent in Indonesia and 7 percent in Bangladesh. Nike, Levi-Strauss, Ralph Lauren, Gap. Inc., Abercrombie & Fitch and VF Corporation, which owns Vans, The North Face and Timberland, also reported a greatly reduced reliance on garment-makers and suppliers in China. Shoe brand Steve Madden said in November it would reduce imports from China by as much as 45 percent this year due to Trump's campaign pledge to impose a 60 percent tariff on all Chinese products. The brand said it already had spent several years developing a factory network in Cambodia, Vietnam, Mexico and Brazil. Industry experts say reviving the American garment industry would be hugely expensive and take years if it were feasible. The number of people working in apparel manufacturing in January 2015 stood at 139,000 and had dwindled to 85,000 by January of this year, according to the Bureau of Labor Statistics. Sri Lanka employs four times as many despite having a population less than one-seventh the size of the US Along with lacking a skilled and willing workforce, the US does not have domestic sources for the more than 70 materials that go into making a typical shoe, the Footwear Distributors & Retailers of America said in written comments to Trump's trade representative. Shoe companies would need to find or set up factories to make cotton laces, eyelets, textile uppers and other components to make finished footwear in the US on a large scale, the group wrote. 'These materials simply do not exist here, and many of these materials have never existed in the U.S,' the organization said. Price increases may come as a shock The expected barrage of apparel price increases would follow three decades of stability. Clothes cost US consumers essentially the same in 2024 as they did in 1994, according to US Bureau of Labor Statistics data. Economists and industry analysts have attributed the trend to free trade agreements, offshoring to foreign countries where workers are paid much less and heated competition for shoppers among discount retailers and fast-fashion brands like H&M, Zara and Forever 21. But customers unaccustomed to inflation in the apparel sector and coming off several years of steep rise in the costs of groceries and housing may be extra sensitive to any big jumps in clothing prices. Priest, of the Footwear Distributors and Retailers of America, said he has observed shoppers pulling back on buying shoes since Trump's return to the White House. 'They're nervous,' he said. 'They've obviously been playing the long game as it relates to inflation for a number of years now. And they just don't have the endurance to absorb higher prices, particularly as they're inflicted by the US government.' Winners and losers in a garment trade war According to a report by British bank Barclays published Friday, the winners in the tariff wars are retailers that have at least one of these attributes: big negotiating power with their suppliers, a strong brand name and limited sourcing in Asia. In clothing and footwear, that includes off-price retailers Burlington, Ross Stores Inc. and TJX Companies, which operates T.J. Maxx and Marshalls, as well as Ralph Lauren and Dick's Sporting Goods, according to the report. The companies in for a tougher time are those with limited negotiating power, limited pricing power and high product exposure in Asia, a list including Gap Inc., Urban Outfitters and American Eagle Outfitters, according to the report. Secondhand clothing resale site ThredUp cheered a related action Trump took with his latest round of tariffs: eliminating a widely used tax exemption that has allowed millions of low-cost goods — most of them originating in China — to enter the US every day duty-free. 'This policy change will increase the cost of cheaply produced, disposable clothing imported from China, directly impacting the business model that fuels overproduction and environmental degradation,' ThredUp said. Several industry analysts and economists said they think tariffs will end up being a consumer sales tax that widens the yawning gap between America's wealthiest residents and those in the middle and lower end of the income spectrum. 'So where will the US be buying its apparel now that the tariff rates on Bangladesh, Vietnam and China are astronomical?' Mary E. Lovely, a senior fellow at the Peterson Institute for International Economics, said of the schedule set to take effect Wednesday. 'Will the new 'Golden Age' involve knitting our own knickers as well as snapping together our cellphones?'
Chicago Tribune
06-04-2025
- Business
- Chicago Tribune
Tariffs will make sneakers, jeans and almost everything Americans wear cost more, trade groups warn
NEW YORK — Sending children back to school in new sneakers, jeans and T-shirts is likely to cost U.S. families significantly more this fall if the bespoke tariffs President Donald Trump put on leading exporters take effect as planned, American industry groups warn. About 97% of the clothes and shoes purchased in the U.S. are imported, predominantly from Asia, the American Apparel & Footwear Association said, citing its most recent data. Walmart, Gap Inc., Lululemon and Nike are a few of the companies that have a majority of their clothing made in Asian countries. Those same garment-making hubs took a big hit under the president's plan to punish individual countries for trade imbalances. For all Chinese goods, that meant tariffs of at least 54%. He set the import tax rates for Vietnam and neighboring Cambodia at 46% and 49%, and products from Bangladesh and Indonesia at 37% and 32%. Working with foreign factories has kept labor costs down for U.S. companies in the fashion trade, but neither they nor their overseas suppliers are likely to absorb new costs that high. India, Indonesia, Pakistan and Sri Lanka also got slapped with high tariffs so aren't immediate sourcing alternatives. 'If these tariffs are allowed to persist, ultimately it's going to make its way to the consumer,' said Steve Lamar, president and CEO of the American Apparel & Footwear Association. Another trade group, Footwear Distributors and Retailers of America, provided estimates of the price increases that could be in store for shoes, noting 99% of the pairs sold in the U.S. are imports. Work boots made in China that now retail for $77 would go up to $115, while customers would pay $220 for running shoes made in Vietnam currently priced at $155, the group said. FDRA President Matt Priest predicted lower-income families and the places they shop would feel the impact most. He said a pair of Chinese-made children's shoes that cost $26 today will likely carry a $41 price tag by the back-to-school shopping season, according to his group's calculations. Preparing for a moving target The tariffs on the top producers of not only finished fashion but many of the materials used to make footwear and apparel shocked U.S. retailers and brands. Before Trump's first term, U.S. companies had started to diversify away from China in response to trade tensions as well as human rights and environmental concerns. They accelerated the pace when he ordered tariffs on Chinese goods in 2018, shifting more production to other countries in Asia. Lululemon said in its latest annual filing that 40% of its sportswear last year was manufactured in Vietnam, 17% in Cambodia, 11% in Sri Lanka, 11% in Indonesia and 7% in Bangladesh. Nike, Levi-Strauss, Ralph Lauren, Gap. Inc., Abercrombie & Fitch and VF Corporation, which owns Vans, The North Face and Timberland, also reported a greatly reduced reliance on garment-makers and suppliers in China. Shoe brand Steve Madden said in November it would reduce imports from China by as much as 45% this year due to Trump's campaign pledge to impose a 60% tariff on all Chinese products. The brand said it already had spent several years developing a factory network in Cambodia, Vietnam, Mexico and Brazil. Industry experts say reviving the American garment industry would be hugely expensive and take years if it were feasible. The number of people working in apparel manufacturing in January 2015 stood at 139,000 and had dwindled to 85,000 by January of this year, according to the Bureau of Labor Statistics. Sri Lanka employs four times as many despite having a population less than one-seventh the size of the U.S. Along with lacking a skilled and willing workforce, the U.S. does not have domestic sources for the more than 70 materials that go into making a typical shoe, the Footwear Distributors & Retailers of America said in written comments to Trump's trade representative. Shoe companies would need to find or set up factories to make cotton laces, eyelets, textile uppers and other components to make finished footwear in the U.S. on a large scale, the group wrote. 'These materials simply do not exist here, and many of these materials have never existed in the U.S,' the organization said. Price increases may come as a shock The expected barrage of apparel price increases would follow three decades of stability. Clothes cost U.S. consumers essentially the same in 2024 as they did in 1994, according to U.S. Bureau of Labor Statistics data. Economists and industry analysts have attributed the trend to free trade agreements, offshoring to foreign countries where workers are paid much less and heated competition for shoppers among discount retailers and fast-fashion brands like H&M, Zara and Forever 21. But customers unaccustomed to inflation in the apparel sector and coming off several years of steep rise in the costs of groceries and housing may be extra sensitive to any big jumps in clothing prices. Priest, of the Footwear Distributors and Retailers of America, said he has observed shoppers pulling back on buying shoes since Trump's return to the White House. 'They're nervous,' he said. 'They've obviously been playing the long game as it relates to inflation for a number of years now. And they just don't have the endurance to absorb higher prices, particularly as they're inflicted by the U.S. government.' Winners and losers in a garment trade war According to a report by British bank Barclays published Friday, the winners in the tariff wars are retailers that have at least one of these attributes: big negotiating power with their suppliers, a strong brand name and limited sourcing in Asia. In clothing and footwear, that includes off-price retailers Burlington, Ross Stores Inc. and TJX Companies, which operates T.J. Maxx and Marshalls, as well as Ralph Lauren and Dick's Sporting Goods, according to the report. The companies in for a tougher time are those with limited negotiating power, limited pricing power and high product exposure in Asia, a list including Gap Inc., Urban Outfitters and American Eagle Outfitters, according to the report. Secondhand clothing resale site ThredUp cheered a related action Trump took with his latest round of tariffs: eliminating a widely used tax exemption that has allowed millions of low-cost goods — most of them originating in China — to enter the U.S. every day duty-free. 'This policy change will increase the cost of cheaply produced, disposable clothing imported from China, directly impacting the business model that fuels overproduction and environmental degradation,' ThredUp said. Several industry analysts and economists said they think tariffs will end up being a consumer sales tax that widens the yawning gap between America's wealthiest residents and those in the middle and lower end of the income spectrum. 'So where will the U.S. be buying its apparel now that the tariff rates on Bangladesh, Vietnam and China are astronomical?' Mary E. Lovely, a senior fellow at the Peterson Institute for International Economics, said of the schedule set to take effect Wednesday. 'Will the new 'Golden Age' involve knitting our own knickers as well as snapping together our cellphones?'
Gulf Today
06-04-2025
- Business
- Gulf Today
Tariffs will make sneakers, jeans and almost everything Americans wear cost more, trade groups warn
Sending children back to school in new sneakers, jeans and T-shirts is likely to cost US families significantly more this fall if the bespoke tariffs President Donald Trump put on leading exporters take effect as planned, American industry groups warn. About 97% of the clothes and shoes purchased in the US are imported, predominantly from Asia, the American Apparel & Footwear Association said, citing its most recent data. Walmart, Gap Inc., Lululemon and Nike are a few of the companies that have a majority of their clothing made in Asian countries. Those same garment-making hubs took a big hit under the president's plan to punish individual countries for trade imbalances. For all Chinese goods, that meant tariffs of at least 54%. He set the import tax rates for Vietnam and neighboring Cambodia at 46% and 49%, and products from Bangladesh and Indonesia at 37% and 32%. Nike sneakers are seen on display at a Nike store on Fifth Avenue in New York City. AFP Working with foreign factories has kept labor costs down for US companies in the fashion trade, but neither they nor their overseas suppliers are likely to absorb new costs that high. India, Indonesia, Pakistan and Sri Lanka also got slapped with high tariffs so aren't immediate sourcing alternatives. "If these tariffs are allowed to persist, ultimately it's going to make its way to the consumer,' said Steve Lamar, president and CEO of the American Apparel & Footwear Association. Another trade group, Footwear Distributors and Retailers of America, provided estimates of the price increases that could be in store for shoes, noting 99% of the pairs sold in the US are imports. Work boots made in China that now retail for $77 would go up to $115, while customers would pay $220 for running shoes made in Vietnam currently priced at $155, the group said. Workers perform their duties at the Nien Hsing Textile factory, a global manufacturer of Levi's jeans, on the outskirts of Maseru, the capital of Lesotho. Reuters FDRA President Matt Priest predicted lower-income families and the places they shop would feel the impact most. He said a pair of Chinese-made children's shoes that cost $26 today will likely carry a $41 price tag by the back-to-school shopping season, according to his group's calculations. The tariffs on the top producers of not only finished fashion but many of the materials used to make footwear and apparel shocked US retailers and brands. Before Trump's first term, US companies had started to diversify away from China in response to trade tensions as well as human rights and environmental concerns. Salesmen wait for customers at their shop in a market in Karachi, Pakistan. AFP They accelerated the pace when he ordered tariffs on Chinese goods in 2018, shifting more production to other countries in Asia. Lululemon said in its latest annual filing that 40% of its sportswear last year was manufactured in Vietnam, 17% in Cambodia, 11% in Sri Lanka, 11% in Indonesia and 7% in Bangladesh. Nike, Levi-Strauss, Ralph Lauren, Gap. Inc., Abercrombie & Fitch and VF Corporation, which owns Vans, The North Face and Timberland, also reported a greatly reduced reliance on garment-makers and suppliers in China. Workers perform their duties at the Nien Hsing Textile factory, a global manufacturer of Levi's jeans, on the outskirts of Maseru, the capital of Lesotho. Reuters Shoe brand Steve Madden said in November it would reduce imports from China by as much as 45% this year due to Trump's campaign pledge to impose a 60% tariff on all Chinese products. The brand said it already had spent several years developing a factory network in Cambodia, Vietnam, Mexico and Brazil. Industry experts say reviving the American garment industry would be hugely expensive and take years if it were feasible. The number of people working in apparel manufacturing in January 2015 stood at 139,000 and had dwindled to 85,000 by January of this year, according to the Bureau of Labor Statistics. Sri Lanka employs four times as many despite having a population less than one-seventh the size of the US. Along with lacking a skilled and willing workforce, the US does not have domestic sources for the more than 70 materials that go into making a typical shoe, the Footwear Distributors & Retailers of America said in written comments to Trump's trade representative. Shoe companies would need to find or set up factories to make cotton laces, eyelets, textile uppers and other components to make finished footwear in the US on a large scale, the group wrote. "These materials simply do not exist here, and many of these materials have never existed in the US,' the organisation said. Nike sneakers are seen on display at a Nike store on Fifth Avenue in New York City. AFP The expected barrage of apparel price increases would follow three decades of stability. Clothes cost US consumers essentially the same in 2024 as they did in 1994, according to US Bureau of Labor Statistics data. Economists and industry analysts have attributed the trend to free trade agreements, offshoring to foreign countries where workers are paid much less and heated competition for shoppers among discount retailers and fast-fashion brands like H&M, Zara and Forever 21. But customers unaccustomed to inflation in the apparel sector and coming off several years of steep rise in the costs of groceries and housing may be extra sensitive to any big jumps in clothing prices. Priest, of the Footwear Distributors and Retailers of America, said he has observed shoppers pulling back on buying shoes since Trump's return to the White House. "They're nervous,' he said. "They've obviously been playing the long game as it relates to inflation for a number of years now. And they just don't have the endurance to absorb higher prices, particularly as they're inflicted by the U.S. government.' According to a report by British bank Barclays published on Friday, the winners in the tariff wars are retailers that have at least one of these attributes: big negotiating power with their suppliers, a strong brand name and limited sourcing in Asia. In clothing and footwear, that includes off-price retailers Burlington, Ross Stores Inc. and TJX Companies, which operates T.J. Maxx and Marshalls, as well as Ralph Lauren and Dick's Sporting Goods, according to the report. The companies in for a tougher time are those with limited negotiating power, limited pricing power and high product exposure in Asia, a list including Gap Inc., Urban Outfitters and American Eagle Outfitters, according to the report. Secondhand clothing resale site ThredUp cheered a related action Trump took with his latest round of tariffs: eliminating a widely used tax exemption that has allowed millions of low-cost goods — most of them originating in China — to enter the US every day duty-free. "This policy change will increase the cost of cheaply produced, disposable clothing imported from China, directly impacting the business model that fuels overproduction and environmental degradation,' ThredUp said. Several industry analysts and economists said they think tariffs will end up being a consumer sales tax that widens the yawning gap between America's wealthiest residents and those in the middle and lower end of the income spectrum. "So where will the US be buying its apparel now that the tariff rates on Bangladesh, Vietnam and China are astronomical?' Mary E. Lovely, a senior fellow at the Peterson Institute for International Economics, said of the schedule set to take effect Wednesday. "Will the new 'Golden Age' involve knitting our own knickers as well as snapping together our cellphones?' Associated Press
