As January nears and the promised enactment of 25% tariffs on apparel looms, the world sits awaiting impact. The duties initially were put into action were set to improve U.S companies’ market access and to protect intellectual property.
In the act of retaliation, Chinese President Xi Jinping enacted $110 billion in tariffs on U.S exports into China. To counter, President Donald Trump then proceeded to threaten higher tax on all imports. In the game of chess that is the U.S-China Trade War, bystanders let out an audible gasp.
Apparel Awaits Tariffs
Currently, the $250 billion worth of duties tacked on to Chinese imports has not reached all industries. Apparel has been mostly unscathed. Handbags, leather gloves, yarns, leathers, and cotton were some of the categories unaffected. By January comes around, they will no longer be protected. This has left apparel companies scrambling to try and diversify their supply chain and restructure their workforces.
U.S – China Attempt a Deal
Luckily a sigh of relief came when news broke that China wanted to make a deal. Sourcing Journal Online reported that China had sent the U.S a list of 142 measures that they are willing to compromise on to ease the strain between the two nations.
“They sent a list of things that they’re willing to do, which was a large list. And it’s just not acceptable to me yet. But at some point, I think that we are doing extremely well with respect to China,” – President Trump
Trump says that if four or five other parameters are met, then a deal will be likely. He added that his intentions have never been to punish China, but to put them and the U.S in a “great position.” CNBC echoes that China would like to move past the trade war,
“The two countries’ trade teams should strengthen contact and conduct consultations on issues of concern to both sides, and promote a plan that both can accept to reach a consensus on the China-U.S. trade issue, ” President Jinping.