In 2018, then-President Donald Trump implemented new tariffs on various Chinese-made goods, leading to increased prices for American consumers. Independent retailers like Tiffany Zarfas Williams had to raise prices to keep up with the higher costs imposed by brand-name distributors who paid the tariffs on imported goods. President Joe Biden, who had criticized tariffs in the past, ultimately decided to keep the duties in place and raise rates on certain imports, contributing to ongoing concerns about high prices and inflation among consumers.
The tariffs, which are paid by US importers and not China, impacted around $300 billion of goods, with plans to raise rates on approximately $18 billion over the next two years. Supply chain disruptions caused by the Covid-19 pandemic and other global events have also contributed to rising prices, particularly in industries like footwear and apparel. Companies like Deer Stags and Cap America have had to adjust their pricing strategies in response to the tariffs, with some looking to new manufacturers in other countries to avoid the extra costs.
The tariffs imposed under Trump have led to higher prices for American consumers across various industries, with economists estimating that the average household could pay an additional $1,000 per year due to the increased costs. While these tariffs have been cited as a contributing factor to the rise in inflation, other factors like housing prices have also played a role. Industry trade groups in apparel, footwear, and travel goods emphasize the significant impact that tariffs have had on consumer prices, with hopes that lifting them could lead to lower costs for consumers.
Despite the concerns raised by industry trade groups and major brands, the Biden administration has chosen to maintain the tariffs as part of its strategy to address unfair trade practices by China and strengthen US supply chains. While there is consensus on the need to address China’s trade policies, opinions vary on the effectiveness of tariffs in achieving these goals. Business leaders and lawmakers are looking for ways to address issues like intellectual property theft and technology transfers, but differing opinions exist on the best approach to take.
While the textile industry and other sectors advocate for keeping and even increasing tariffs to protect domestic manufacturing, leaders in apparel and footwear industries express skepticism about the effectiveness of this strategy in addressing the root issues with China. Past agreements between the US and China, such as the Phase One agreement reached in 2020, have not led to significant changes, leading to concerns about the impact of ongoing tariffs on consumer prices. The Biden administration’s decision to maintain tariffs has sparked debate among industry leaders and policymakers about the best approach to address trade imbalances and protect American consumers.
