WASHINGTON, D.C. — July 21, 2022 — Today the U.S. Fashion Industry Association joins other retail and fashion industry groups who are speaking out about the pernicious impact of the Section 301 tariffs on both the American fashion industry and American consumers. Our message is clear — Americans, not China, are the losers here. American businesses and consumers have paid more than $145 billion in extra tariffs that have not discouraged the behavior that triggered the original 301 investigation.

Tariffs are a direct, regressive tax on the American consumer—it affects consumers at all income levels, from the single parent struggling to make ends meet as they purchase back-to-school necessities for their kids, to the consumer of high-end fashion manufactured in the United States, and every American family in between. However, the average low-income U.S. household spends a higher portion of its income on apparel and footwear than wealthier Americans, meaning that tariffs on apparel and footwear have hit struggling families more than anyone else. For example, the tariff on a cashmere sweater is 4%, while the tariff on a lower-cost acrylic sweater is 32%.

In USFIA’s statement, we highlight the fact that these tariffs have negatively impacted the American jobs created by American brands and retailers. Trade supports high-quality, high-paying jobs, but these tariffs have discouraged America’s most innovative and iconic brands from hiring due to the increased sourcing and production costs. These tariffs have also not encouraged a large-scale shift out of China as companies diversify their sourcing base. China is the leading textile supplier of fabrics and accessories in the world and there are currently no realistic options for sourcing destinations that can viably replace China entirely.

We also rebut the claims that removing these tariffs will hurt U.S. workers and do nothing to fight inflation. This is the predictable response of protectionists and ignores the reality of the situation. Rather, we agree with U.S. Treasury Secretary Janet Yellen that tariffs increase domestic prices and raise costs to consumers and businesses due to higher cost inputs and that lowering U.S. and Chinese tariffs could help ease inflation. Secretary’s Yellen’s observations are supported by the U.S. Congressional Budget Office, which estimated that the tariffs would cost the average American household nearly $1,300 in 2020 alone, and by a recent study from the Peterson Institute for International Economics, which found that cutting the Section 301 tariffs would directly correspond to a reduction in the consumer price index.

According to the 2022 USFIA Benchmarking Survey, which was released earlier this week, increasing production or sourcing costs are the #1 business challenge facing the U.S. fashion industry in 2022. Removing these tariffs would help both American consumers and businesses at a time of extreme inflation.

These tariffs have done nothing to solve China’s Intellectual Property (IP) policies and practices. From the experience of USFIA member companies (who source and sell products around the world, including and especially in China) the best way to address these concerns is action at the multilateral level that includes other global trading partners – and USFIA’s member companies are no stranger to IP violations. Let’s find a solution that does not use American companies and American families as the hostages to outmoded protectionist ideas.

Click here to read USFIA President Julia K. Hughes’ full testimony as prepared for the hearing.

Posted: July 21, 2022

Source: The United States Fashion Industry Association (USFIA)

WASHINGTON — July 21, 2022 — Section 301 penalty tariffs on finished Chinese textile and apparel imports give American manufacturers a chance to compete and provide trade officials with an essential trade negotiation tool, the National Council of Textile Organizations (NCTO) told a key government panel today in a formal written submission. Removing them, the association said, would reward China, put U.S. manufacturers at a competitive disadvantage and do nothing to reduce inflation.

Those were among the key points outlined by NCTO President and CEO Kim Glas in a written testimony submitted to the U.S. International Trade Commission during three days of hearings on the economic impact of Section 301 China tariffs and Section 232 steel tariffs on U.S. industries.

The 301 penalty tariffs should be maintained “absent substantive improvements in China’s pervasive, predatory trade practices,” Glas said in her testimony.  China’s illegal actions “have put U.S. companies at a serious disadvantage, and tariffs give American manufacturers a chance to compete.” Glas noted that U.S. trade officials have “stressed that the penalty tariffs also create leverage and are a ‘significant tool’ in ongoing negotiations with China.”

While some advocates for lifting the tariffs point to concerns about inflation, Glas said, “canceling these penalty duties would do little to ease Americans’ inflationary pains.” She also noted that “apparel prices out of China continue to hit rock bottom even with the Section 301 tariffs in place. As detailed in an economic study recently released by Werner International, U.S. import prices for apparel from China have dropped 25 percent since 2019 and 50 percent since 2011.”

Glas also warned that lifting the tariffs would have “a substantial negative ripple effect” on U.S. free-trade agreements, including undermining those with Western Hemisphere partners that have established shorter coproduction supply chains and serve other U.S. and regional interests.

The Section 301 tariffs were first imposed in 2018 in response to China’s persistent violations of intellectual property rules. By law, they are now under review.

NCTO represents the full spectrum of the U.S. textile industry, from fibers to finished sewn products.

See the full written submission here.

Posted: July 21, 2022

Source: The National Council of Textile Organizations (NCTO)

AUBURN, Maine — July 21, 2022 — Today, Auburn Manufacturing Inc. (AMI) — an industry leader in the manufacture of advanced textiles for extreme-heat environments — hosted officials from the U.S. Commerce Department at AMI’s plant in Auburn. Part of an outreach initiative with Maine businesses, the Commerce Department’s visit focused on the state’s manufacturing sector and how global trade issues affect local manufacturers like AMI. The company’s successful anti-dumping claims against Chinese competitors also came up in the conversation, with AMI again coming out in support of fair, rules-based trade.

A Maine textile manufacturer with over four decades of experience, AMI is a leading producer of fire- and heat-resistant materials, manufacturing the most advanced products to meet U.S. safety standards. AMI textiles are used as protection from extreme high heat in mining, shipbuilding, steelmaking, and other critical industries. The company also manufactures end-use products, including a patented, modular removable insulation kit.

The AMI event featured a delegation of 12 Commerce Department representatives, led by Lisa Wang, Assistant Secretary of Commerce for Enforcement and Compliance. A photo shoot was staged at the Auburn plant, with AMI CEO Kathie Leonard and other company officials showcasing recent improvements to the facility and new equipment upgrades.

The Commerce Department visit was facilitated by Thomas Conley, Senior International Trade Specialist at the International Trade Administration, and supported by the National Council of Textile Organizations (NCTO), of which AMI is a proud member. A longtime supporter of AMI’s advocacy for Maine manufacturers, Conley is a former staffer at the Maine International Trade Center.

“The AMI team was proud to host the Commerce Department at our Auburn plant,” said Leonard. “It’s important for Maine-based manufacturers to collaborate with the federal government whenever possible, updating public officials on new threats and opportunities in the global marketplace. Today’s event shows that the public and private sectors are unified in their support for textile production and other domestic industries. Business leaders in states like Maine and federal officials in Washington, D.C. can indeed work together to solve a wide range of problems, and today was an important step forward in that regard.”

“Protecting U.S. workers and industries from the impacts of unfair trade is at the core of Commerce’s mission, and is critical to ensuring that U.S. companies can continue to produce high-quality products in the United States,” said Wang. “It is exciting to meet and connect with the workers impacted by the important work that Enforcement and Compliance does.”

“We sincerely appreciate Assistant Secretary Wang’s inaugural visit to AMI and the U.S. textile industry, where she gained firsthand knowledge of the company’s incredible, innovative, and state-of-the-art manufacturing facilities,” said NCTO President and CEO Kimberly Glas. “The Assistant Secretary’s visit reinforced the importance of a public-private partnership between American textile producers and Commerce’s Enforcement and Compliance division, which assists U.S. firms harmed by unfair dumping of imported products into the U.S. market and a whole host of other unfair trade practices that continuously pose a threat to our industry and our workers. It is critically important that Commerce engage in robust trade enforcement to address predatory trade practices from China and other countries that undermine our industry and many others.”

Posted July 21, 2022

Source: Auburn Mfg.