Trump’s Tariff Tiff with China Hits Textiles
The latest round of tit-for-tat tariff hikes announced by President Donald Trump against China on Sept. 17 officially took effect on Sept. 24. A total of 5,745 individual items – including a number of textile products – will be hit with a 10% duty that will rise to 25% in 2019, according to news reports.
Trump administration officials have said the tariffs are unlikely to have a major impact on consumers—most of the items on the list are various fish, meat and grain products. However, some consumer items are included, such as hats and televisions. Click here for details. A previous round of tariffs announced in July were limited to $50 billion worth of mainly industrial equipment and machinery.
Textile items that are on the new list include:
- Polyester, polypropylene, rayon and nylon
- Corduroy, gauze, lace, badges, embroidery and terrycloth towel fabric
- Headgear, such as caps and hairnets
- Cotton: fibers, thread, yarn and denim
Rob Potack, CEO, Unitex, a healthcare operator based in Elmsford, NY, says he’s not seen any spike in textile costs so far. “I have only heard some rumors, but no vendor has approached us yet on price increases,” he said. Another operator executive, Eddie Lefeaux of Westport Linen Services, Baton Rouge, LA, also said he’s experienced no recent hikes in textile prices. “We have not seen any movement in pricing so far from the tariff changes in linen prices,” said Lefeaux, CEO of Westport.
That could change as the impact of this latest round of tariffs circulates through the economy.
For its part, China has responded with retaliatory tariffs against $60 billion worth of U.S. goods, including meat, wheat and textiles that also took effect on Sept. 24. Rick Helfenbein, president and CEO of the American Apparel and Footwear Association, criticized the Trump administration’s latest salvo in the trade dispute with China, noting that, “We are extremely disappointed that President Trump has, once again, decided to impose a huge new tax on American consumers and manufacturers.” Click here for details. Click here to review the full list of products subject to tariffs from the U.S. Trade Representative.