IMPORT & EXPORT
By Andrew Asch | January 16, 2020
In a fast-paced set of events, President Donald Trump signed Phase Oneof the trade agreement between the U.S. and the People’s Republic of China on Jan. 15. The next day, the U.S. Senate approved the United States–Mexico–Canada Agreement, a platform upon which Trump campaigned during 2016 as a replacement for the North American Free Trade Agreement.
Business at Southern California’s seaports has been looking a little schizophrenic.
Following the White House’s removal of Turkey from the countries eligible for GSP (Generalized System of Preferences) status last month, the Trump administration declared that India has been deemed ineligible for continued inclusion as a beneficiary under the duty-free trade program.
A great deal of attention has been paid to the issues surrounding the Trump administration’s move to impose up to an additional 25 percent higher tariff on certain goods entering the United States from China.
Robert Jungmann has been importing hemp fabric from China for more than 20 years for the T-shirts he manufactures in Los Angeles.
As the Trump administration threatened to again raise tariffs on $200 billion worth of Chinese imports as soon as May 10, many were wondering how far it would go and what it would cost the American consumer.
After years of litigation, Byer California has agreed to pay $325,000 in a civil fraud lawsuit that alleges the decades-old San Francisco clothing company for five years undervalued the cost of its merchandise coming through customs, paying lower duties than normal.
Apparel and textile importers have spent the last year challenged by rising shipping rates and tight vessel space as cargo owners scrambled to bring in merchandise earlier than normal to beat an expected tariff rise on certain Chinese goods.
The recent lull in the trade war between the United States and China was good news for U.S. retailers, clothing manufacturers and importers who have seen their bottom line eroded by a 10 percent tariff on certain goods imported from China.
In the past year, it has become increasingly more challenging to be an apparel manufacturer, importer or retailer in the United States as uncertainty surrounds trade with China.
With additional tariffs on Chinese imports being threatened, Los Angeles clothing makers are feeling the pinch to bring in goods earlier to save money.
If you had to explain why the stock market is going up and down like a yo-yo, one of the reasons is the uncertainty in trade.
If you thought U.S. clothing companies were shying away from China to make their wide array of imported garments, think again.
This has been a year of uncertainty for the trade world.
When U.S. tariffs were levied in September on $200 billion worth of Chinese imports, some apparel companies saw the writing on the wall even if they wanted to erase it.
With new tariffs being placed on textiles coming from China, many U.S. fabric importers are scrambling to find new textile trading partners whose goods are not subject to the recently imposed 10 percent tariff that could rise to 25 percent at the beginning of the year.