US President Joe Biden warranted quadrupling customs duties on Chinese electric vehicles by stating that China “deceives” and that the US won’t let its markets to be flooded with Chinese knock-offs. Such tariffs, besides increases on other goods including textiles and apparel, have increased concerns for the American Apparel & Footwear Association (AAFA).
Steve Lamar, CEO of AAFA, shared his disappointment, calling tariffs regressive taxes that are eventually passed on to American consumers. He stressed the adverse impact on consumers and manufacturers, mostly amid inflation concerns. AAFA shared that the Biden administration’s decision to expand tariffs ignored the policy’s previous ineffectiveness. The US government had brought down customs duties on apparel and textile imports from China from 15 per cent to 7.5 per cent, in 2019.
Nate Herman, AAFA’s senior vice president of policy, highlighted that the turnaround on reliefs puts manufacturers and workers at a disadvantage, intensifying inflationary pressures. The failure to settle a new trade deal with China has led to this decision, revealing what AAFA’s VP of trade and customs policy, Beth Hughes, sees as an absence of an efficient trade policy agenda by the Biden administration.
According to AAFA, “The price of List 4A imports from China, which comprises of textiles and apparel, has fallen only slightly since the 7.5 per cent tariff was initiated.”
