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IAF welcomes pause in import tariffs on the clothing sector by the US

 

Welcoming the current pause in the implementation of a significant portion of import tariffs by the United States on the clothing sector, the International Apparel Federation (IAF) asserted, these import tariffs not only present a direct threat to the clothing industry but also risk destabilizing economies and jeopardizing the livelihoods of numerous employees and business owners in the sector.

However, the uncertainty created by these policies remains as global supply chains continue to recover from the pandemic, the crisis in the Red Sea, and decreasing consumer confidence, IAF cautioned.   The unpredictable nature of trade policy discourages investment and makes the market more unstable, hindering the recovery of confidence. Consequently, the IAF urged for an establishment of a stable and predictable trade environment.

The federation further pointed out, import tariffs imposed by the United States on China could trigger escalations with other countries. Many clothing-exporting nations lack the domestic purchasing power to substantially increase imports from the US. Therefore, demanding steep corrections to the trade balance is unrealistic and unreasonable. According to the IAF, the high tariffs sought by Trump to balance the trade relationship between the US and many other countries are unlikely to result in a large-scale return of clothing production to the US.

 
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