Tariff Uncertainty Choking U.S. Growth, Trade Group Says

President Trump’s executive order extending the temporary reduction of retaliatory tariffs on U.S. imports from China is drawing fire from the American Apparel and Footwear Association (AAFA). The extension maintains the baseline rate of 30% for an additional 90 days, delaying the expected increase in tariffs that was set to take place on Aug. 12.

In a news release, AAFA President and CEO Steve Lamar said his group does appreciate the Trump administration’s ongoing talks with China and the extension of the pause on heightened tariffs until November, as it “will help to avert devastating consequences like product elimination and business closures.”

However, Lamar laments that “the constant cycle of deadline delays and vague deal terms has kept American companies and consumers stuck in the same holding pattern since  the start of April. This pattern has and continues to stifle innovation, strategic decision-making, and long-term growth.”

Looking ahead, Lamar’s group urges the administration to include a non-stacking provision, similar to recent agreements with Japan and the EU.

“Even with the pause on the worst-case rate, a 30 percent tariff on our largest trading partner is still untenably high,” Lamar said. “We can’t forget that these tariffs are being added on top of existing ones including the nearly century-old Smoot-Hawley MFN tariffs and the Section 301 tariffs. When stacked on top of these already steep tariffs, it amounts to double taxation on hardworking American families for everyday essentials like clothing and footwear.”

The association’s membership includes brands, retailers and manufacturers, including such high-profile names as Abercrombie & Fitch, Gap Inc., Macy’s Inc., Nordstrom, Ralph Lauren and Target Corp. Its 1100 member companies employ a total of 3.6 million U.S. workers.

Click here for the full AAFA statement.