ZCZC
BCN-08
US-CHINA-TARIFF-DISPUTE-RETAIL-ADIDAS
Adidas, Nike, PUMA say new tariffs on China would be ‘catastrophic’
WASHINGTON, May 22, 2019 (BSS/AFP) – Adidas, Nike and PUMA on Tuesday
urged US President Donald Trump to prevent the shoe industry from falling
victim to the trade war with China, saying new tariffs could be
“catastrophic.”
In a letter to Trump, those big name manufacturers joined forces with more
than 170 other American shoe manufacturers and retailers calling for footwear
to be exempted from a new round of punitive tariffs on $300 billion in
Chinese goods.
In the escalating trade war with Beijing, Trump this month increased
existing tariffs on $200 billion in Chinese imports to 25 percent, and is
threatening to extend those duties to nearly all Chinese products imported
into the United States.
That would mean additional taxes on a range of consumer goods, including
electronics and clothing, such as athletic shoes and iPhones, which has
sparked fear in retailers and producers who rely on goods from China.
“The proposed additional tariff of 25 percent on footwear would be
catastrophic for our consumers, our companies, and the American economy as a
whole,” the letter from the shoe coalition states.
The firms said the industry already pays $3 billion in duties and that
additional tariffs would increase costs and prices.
– US consumers pay the price –
“There should be no misunderstanding that US consumers pay for tariffs on
products that are imported,” the companies said, refuting Trump’s frequent
erroneous statement that China pays the tariffs, creating a windfall for the
US Treasury.
While Trump has called on industries to move away from China or produce
their products in the United States, the shoe industry firms said they need
“years of planning… to make sourcing decisions and companies cannot simply
move factories to adjust to these changes.”
The shoe industry — including other names like Reebok, Ariat and Crocs,
as well as retailers like Foot Locker — is the latest to wade into the
debate.
While many companies and industries want to see changes in China’s
policies, including resolving the issue of theft of US technology, they
oppose using tariffs as the primary weapon.
In a letter just after the new tariffs were announced, a group of 17
industry groups urged Trump to reconsider, given their reliance on China for
goods.
“In 2017, China accounted for about 41% of all apparel, 72% of all
footwear, and 84% of all travel goods imported into the United States,” the
letter said.
The US Trade Representative’s office published a list of products that
would be targeted by new tariffs, and has called for public comment,
including a hearing set for June 17.
In prior rounds of tariffs, the White House granted exemptions for some
critical products at the request of US industries.
BSS/AFP/HR/0930