US consumers can expect significant price increases for sneakers, jeans, and most clothing items this fall due to the planned tariffs on leading exporters. The American Apparel & Footwear Association warns that these tariffs, which have already been imposed on China, Vietnam, and other countries, will lead to higher prices for US families.
Currently, around 97% of clothing and shoes purchased in the US are imported from Asia, with companies such as Walmart, Gap Inc., Lululemon, and Nike having a majority of their products made in Asian countries. If the tariffs take effect, prices for shoes and clothing could increase by up to 50%.
Industry experts predict that lower-income families will feel the impact most due to the high tariff rates. The Footwear Distributors and Retailers of America estimates that prices for Chinese-made children’s shoes could rise by $15 in just a year.
The US apparel industry has already started diversifying its production away from China, with companies shifting more production to countries such as Vietnam and Cambodia. However, reviving the American garment industry would be hugely expensive and take years.
Tariffs will also have a disproportionate impact on retailers with limited negotiating power and high product exposure in Asia. Companies like Gap Inc., Urban Outfitters, and American Eagle Outfitters could struggle to absorb the increased costs.
Economists argue that tariffs will widen the gap between America’s wealthiest residents and those in the middle and lower end of the income spectrum. The planned tariff rates on Bangladesh, Vietnam, and China are astronomical, leading some to question whether the US will be able to afford its own clothing in the future.
Source: https://apnews.com/article/tariffs-clothing-shoes-china-vietnam-8eb3c697da9541ca849f6ed52d7279b2