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Trump’s motives for starting a global trade war are questionable. If the goal is really to bring manufacturing and production back to the US, it’s going to be a hard-fought battle to get there, one that brands say they aren’t prepared to fight. “My jaw would drop if that ever became a real option. On the floor,” one brand executive said ahead of the announcement. Sources are unanimous: the US is not equipped with the facilities, materials or talent to absorb overseas production at the scale it operates now. “Could some manufacturing come back to the US? Maybe. But it’s not going to happen overnight. Capacity is not there; materials are not there. You’re not going to make up for international sourcing — it’s just not going to happen. The scale is not there,” says Gold. Bahl’s Saitex offers denim manufacturing in LA, but he says it would be impossible to move 100 per cent of the company’s operations to the US. He suggests that companies that do operate in the US, like his, should be rewarded for what they’ve already built. But he acknowledges that that’s a long shot. “We should get preferential treatment. I may be out of my mind when I say this, but I don’t think that if we import materials, we should be taxed the same duties.”Exercising Just Enough To Fck Fight Unisex Shirts
Thanks to tariffs, manufacturing in the US will also become more expensive as the cost of materials increases. “While the President touts ‘America First’ policies, this tariff plan overlooks the destructive impact it will have on the US manufacturers in our industry,” the AAFA said in a statement. “These American companies depend on foreign inputs which have no, or very few, American substitutes. Tariffs will significantly increase the cost of manufacturing in the US, and, when paired with the retaliatory tariffs that will surely come, will undermine US export opportunities as well.” Already, some countries have enacted or threatened reciprocal tariffs in response to Trump’s policy. China has retaliated with 34 per cent tariffs on US imports, while the EU has weighed the option of taxing US imports as well as its tech services. And as the cost of everything is expected to rise thanks to tariffs, companies have to consider the cost of the entire supply chain, from the fertiliser used to grow cotton to the metals used to make zippers.
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