Latest news with #U.S.InternationalTradeCommission
Yahoo
3 days ago
- Business
- Yahoo
Apparel Tariffs Climbed to Historic Highs in April
Tariff rates on apparel imported from across the globe spiked in April, and that upward trend seems poised to continue amid protracted negotiations between the United States and its preeminent trading partners, according to Dr. Sheng Lu. The University of Delaware professor of fashion and apparel studies assessed the U.S. International Trade Commission's (USITC) recently released data from April, which showed that as a result of President Donald Trump's reciprocal tariffs, announced on 'Liberation Day' on April 2, the average tariff rate for U.S. apparel imports reached 20.1 percent. More from Sourcing Journal Vietnam's Ready For High Stakes US Trade Talks To Avoid Steep Tariffs RH Continues to Mitigate Tariff Pressure; Says Revenues Will Take Short-term Hit China-to-US Freight Rates 'No Longer Surging'-Is it All Downhill from Here? That's a 13.8-percent increase from the same period a year prior and a 14.7-percent jump from January of this year, and the highest average duty rate on clothing imports seen in decades. The tax hikes were predictably particularly acute for apparel imported from China, which has seen numerous duty rate hikes since February, including an executive order setting tariffs at a whopping 145 percent for products across the board—a figure that' has fluctuated throughout a series of trade negotiations. In April, the average tariff rate for clothing imported from the sourcing superpower reached an unprecedented 55 percent, up from 37 percent in March and 22 percent in January. The data was skewed by the fact that many importers frontloaded orders to hit open waters before the steepest tariffs took effect, Lu said. China was far from the only sourcing locale that faced higher duties, though it is the most prolific producer of apparel. Removing China from the equation revealed an average tariff rate for apparel imports from other countries totaling 15.2 percent in April, Lu found. Though the rate was higher than the 12 percent to 13 percent seen in early 2025 before Trump took office, it was significantly more modest than the theoretical 10-percent universal baseline tariff increase announced by the administration. He told Sourcing Journal that average tariff rates for U.S. apparel imports from leading Asian suppliers like Vietnam, Bangladesh, and Cambodia followed similar patterns—higher tariffs, but well below a 10-percent increase. 'Similar to China's case, it appears that U.S. apparel imports from other countries in April 2025 included a significant proportion of products that were exempt from reciprocal tariffs because they were loaded onto a vesselearly enough,' Lu said. April's data illuminates some notable trends, chief among them, the quick-thinking actions taken by importers to frontload orders. But within the context of day-to-day evolutions in trade policy perpetuated by the Trump administration, April feels like lightyears, not months, in the past. And dealmaking with more than a dozen of the nation's prominent trading partners is still underway ahead of the expiration of the pause on reciprocal duties on July 9—a deadline the administration now says could be extended. This week, the president took to Truth Social to announce a new 55-percent tariff rate for China-made goods—the result of two days of trade negotiations between U.S. and China officials in London. While the president was quick to take a digital victory lap, hailing the deal as 'GREAT' on Thursday, neither head of state has officially ratified the terms. The trade truce won't 'help much in reducing market uncertainty,' Lu believes. 'Not only are the details of the agreement yet to be announced, but the nature of the deal, the pending legal case against Trump administration's imposition of [International Emergency Economic Powers Act] tariffs, and the pending tariff rates affecting U.S. apparel imports from other sources also contribute to this uncertainty,' he said. In other words, U.S. brands and retailers are still in a holding pattern, unwilling to make major decisions that could upend their global supply chains. But should the 55-percent rate on China imports stick, Lu believes American firms 'will further increase their sourcing volume from other leading Asian suppliers, particularly other leading apparel suppliers in Asia that are still subject to a relatively lower tariff rate, such as Vietnam, Bangladesh, and India.' This is a pattern that's already emerged over the past few months as China has been 'singled out' by the president, facing a much higher tariff burden than other Asian nations. Apparel imports from China fell in April by 13.3 percent as a result of the heavy duties, while imports from Vietnam (up 23.4 percent), Bangladesh (up 37.8 percent), Cambodia (up 38.6 percent), Pakistan (up 25.7 percent) and Sri Lanka (up 26.4 percent) positively 'surged,' Lu said. That doesn't necessarily mean Trump's plan to rebalance the trade deficit with China is working, though.'It should be noted that many apparel exports from these Asian countries may come from factories owned by Chinese investors,' Lu explained. 'It will also become increasingly common for Chinese garment factories to become 'super-vendors' with production capabilities in multiple countries.' In other words, China's reach and influence may grow as it adapts to increasingly prohibitive trade constraints levied by the U.S. It remains 'highly uncertain' which countries will be among the first to reach trade deals with the Trump administration, Lu said. 'From the apparel industry's perspective, a deal with leading Asian suppliers, including Vietnam, Bangladesh, India, and Cambodia, as well as CAFTA-DR members, would be the priority,' he added. The administration has indicated that talks with some of these nations, including India and Vietnam, have been ongoing. U.S. fashion firms are understandably itching for a fuller picture of what tariff rates they'll face in the next few months, never mind the coming years. In Lu's estimation, given the only two trade deals that have been worked out thus far, 'the chances that U.S. fashion companies would pay a lower tariff rate than they currently do are quite low.' China's 55-percent rate represents a massive burden for those importing from the country, and the recently announced trade deal with the United Kingdom leaves importers to face a 10-percent duty rate. According to Lu, 'it is more likely than not that the final 'reciprocal tariff' rate reached between the U.S. and a trading partner will be 10 percent or even higher.' Because the president is laser-focused on rebalancing trade, medium-sized major economies that could potentially import more American made products could be well-positioned to make more favorable deals with Washington—and sooner. Lu's assessment of the April USITC data uncovered a surprising downside—namely, for America's nearshore neighbors. 'It is interesting to note that the reciprocal tariff resulted in the most significant increase in tariff rates on U.S. apparel imports from CAFTA-DR members,' he said, referring to the Dominican Republic-Central America Free Trade Agreement, which encompasses countries including Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. While imports from these nations are presumably duty-free under the trade agreement, the average tariff rate paid on apparel imports hit 6.7 percent in April. Lu said that's because the short shipping distance between Central America and the U.S. actually worked to their disadvantage. 'Due to the short distance between the U.S. and CAFTA-DR members, there [was] limited flexibility for U.S. fashion companies to utilize the timing of shipping to avoid paying tariffs,' he said. Lu broke it down this way: 'Except for Mexico and China, U.S. apparel imports from all sources in April 2025 should face an additional 10-percent reciprocal tariff on top of the existing MFN tariff rate. However, the increase in tariff rates was actually much more modest (i.e., only about a 2-3 percentage point increase instead of 10 percent) for U.S. apparel imports from most Asian countries, as many imports were loaded onto vessels early enough to qualify for tariff exemption.' Only apparel imports from CAFTA-DR saw an increase in tariff rate as high as 6.7 percent in April, 'partially because, with transit times of days, not weeks, orders had to be placed after tariff announcements, forcing U.S. fashion companies to absorb the increased tariff rate,' Lu said. These countries also have a more limited ability to fulfill new orders on short notice, unlike their Asian counterparts. There's no evidence that Trump's tariff regime has benefited nearshore countries in the Western Hemisphere at all, Lu said. In fact, CAFTA-DR nations accounted for just 8.8 percent of clothing imports from January through April, down from 10.3 percent during the same period last year. Of course, all this could change with the release of May's data—and with the continual shakeups in sourcing that will most certainly result as the administration solidifies trade deals in the coming weeks. 'Overall, it remains uncertain how the U.S. apparel tariff rates will continue to evolve in response to Trump's shifting tariff policy,' Lu said. 'It appears that the trade volume and timing of shipment will be highly sensitive to short-term tariff rate changes, whereas adjusting sourcing bases and product structures will be a consideration for U.S. fashion companies in the medium- to long-term.'
Ya Biladi
10-06-2025
- Business
- Ya Biladi
US Trade Commission launches second review in Morocco phosphate fertilizer case
The U.S. International Trade Commission (USITC) has announced it will conduct a second court-ordered remand review in the countervailing duty case involving phosphate fertilizer imports from Morocco, reads a Federal Register document published on Tuesday. This follows an April 22, 2025 ruling by the U.S. Court of International Trade, which again asked the Commission to better justify its finding that Moroccan and Russian imports harmed the U.S. domestic industry. The case dates back to March 2021, when the USITC first ruled that phosphate fertilizers from Morocco and Russia materially injured American producers. Morocco's OCP Group challenged the decision in court. Although the Commission reaffirmed its findings in January 2024 after a first remand, the court has now ordered a second review, with no new evidence allowed. Only parties that participated in both the original investigation and the appeal, including OCP, may submit written comments. The deadline for submissions is June 20, 2025.
The Sun
31-05-2025
- Business
- The Sun
Trump says he plans to double steel tariffs to 50%
WEST MIFFLIN (Pennsylvania): U.S. President Donald Trump on Friday said he planned to increase tariffs on foreign imports of steel from 25% to 50%, ratcheting up pressure on global steel producers and vowing to deepen his trade war. 'We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,' he said at a rally in Pennsylvania. The levy increase will take effect next week. The steel tariffs, along with levies on aluminum, were among the earliest put into effect by Trump when he returned to office in January. The tariffs of 25% on most steel and aluminum imported to the U.S. went into effect in March, and he had briefly threatened a 50% levy on Canadian steel but ultimately backed off. Under the so-called Section 232 national security authority, the import taxes include both raw metals and derivative products as diverse as stainless steel sinks, gas ranges, air conditioner evaporator coils, horseshoes, aluminum fry pans and steel door hinges. The total 2024 import value for the 289 product categories came to $147.3 billion with nearly two-thirds aluminum and one-third steel, according to Census Bureau data retrieved through the U.S. International Trade Commission's Data Web system. By contrast, Trump's first two rounds of punitive tariffs on Chinese industrial goods in 2018 during his first term totaled $50 billion in annual import value.
CNBC
27-05-2025
- Business
- CNBC
Polsinelli's Deanna Okun: We tell our clients to ignore the noise around tariffs, look at details
Deanna Okun, former U.S. International Trade Commission commissioner and chair, and Jon Cowley, Baker McKenzie partner, join CNBC's 'Squawk on the Street' to discuss how lawyers are advising corporate clients on how to navigate tariffs, how companies are positioning, and more.
Yahoo
27-05-2025
- Business
- Yahoo
Pressure building for homeowners as renovation industry gets hammered by supply chain chaos thanks to tariffs
Tariffs are hammering the home renovation industry, pushing designers, contractors and homeowners into a financial crunch as rising costs create chaos in the supply chain. Chad Esslinger, an interior designer based outside Chicago, says the pressure has been building ever since President Donald Trump introduced sweeping global tariffs in early April. Costs have been creeping up for Esslinger, telling CNN that one key supplier, providing lighting, rugs and furniture, slapped a 14% 'temporary tariff surcharge' on Chinese imports and 2% on goods from any other countries starting May 12. Another vendor dealing in fabric and wallpaper also warned of imminent price hikes. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'I've seen it where sometimes they don't even warn you,' he said. 'I've gone to a website to look at a product I might have sourced a month ago, and now suddenly it's a certain percentage more.' To survive, Esslinger says the price hikes can't be absorbed; they have to be passed on. 'Just like everything,' he said, 'you have to pass that cost along if you want to stay profitable.' The home renovation market has thrived in recent years, bolstered by an aging housing stock and fewer new builds. But that growth is being threatened by U.S. trade policy. In 2024, China exported more than $438 billion worth of goods to the U.S., with nearly 19% of that total in machinery and appliances, including refrigerators, dishwashers, laundry machines, and another 4% in furniture and lighting, according to the U.S. International Trade Commission. A recent agreement between the U.S. and China has temporarily lowered that rate to 30% for 90 days, but the broader market remains unsettled. Blanket 10% tariffs remain in effect for many other trading partners, and those rates could climb again after July 9. 'It's top of mind at this point. On the contractor side, they're waiting to see how it unfolds,' Julie Kheyfets, CEO of Block Renovation, a platform that connects homeowners with contractors, told CNN. 'The thing about renovations is, every renovation is different. You can't stock a bunch of extra materials ahead of time, because every homeowner wants something different.' That uncertainty has made it harder for businesses to plan and for customers to commit. The U.S. home remodeling market is still expected to grow in the coming years, according to fresh projections from the National Association of Home Builders (NAHB). The NAHB forecasts a 5% increase in residential remodeling activity for 2025, showing resilience in the face of economic and trade policy volatility. The growth, they say, is being driven by factors like aging housing, high home equity levels and an aging demographic. But despite the projections, professionals like Esslinger say the lack of clarity is causing delays. 'The word that just keeps coming up is uncertainty,' he said. 'I've had some clients say they're going to hold off for a little bit and see how things go, while some have scaled back a little bit.' Not everyone is seeing the same level of impact. Nina Sepiashvily, who runs I&N Builders in New York City, says that while she's noticed a slight uptick in costs, it's nothing compared to the price surges triggered by post-pandemic inflation. Her focus is more on structural materials like lumber, rather than imported furnishings. Tariffs on Canadian lumber, a key import for the U.S., sit at 14.5%, but the U.S. Department of Commerce has proposed more than doubling that rate to 34.5%. 'We haven't really seen [tariffs] affect our costs yet,' Sepiashvily said, 'Homeowners are uncertain about tariffs, they're uncertain about their investments and they're afraid to pull the trigger.' But in New Mexico, interior decorator Sandy Schargel experienced the ripple effects firsthand when a lighting company canceled a large order due to tariff-related product discontinuations. Replacement options came with a 10% markup. Schargel says the loss of access to more affordable imported items means she now often looks to American-made alternatives in a shift that may drive up costs for budget-conscious clients. 'When you come to the lower price points, American-made does limit things, somewhat,' she said. 'Imported merchandise often has lower price options.' She's now telling her clients to buy early. 'I've told people to order what they need as soon as possible to avoid prices going up further down the line,' she said. As for Esslinger, he hasn't seen any price relief. 'No home goods importers I work with have said they plan to lower prices,' he said. Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs If you're planning a home renovation in 2025, you're likely feeling the squeeze of rising material costs and ongoing tariff volatility. But, with the right strategy, you can still make your dream remodel a reality without blowing your budget. Here are four ways to protect your wallet and stay on track: Renovation costs can escalate quickly in today's market. Experts recommend adding a 15% to 30% contingency to your budget to account for unexpected costs, like price hikes in materials. Use budgeting tools, whether spreadsheets or apps, to monitor every dollar spent and keep your project from spiralling out of control. Global supply chains remain unpredictable, and tariffs are making some imports pricier than ever. You can choose U.S. lumber or steel, which tend to be less tariff-sensitive. You can also work with local suppliers to cut down on shipping costs. Renovations are a big-ticket item, but there are smart ways to finance them, like home equity lines of credit (HELOCs), home equity loans, which offer fixed-rate options or personal loans, if you have strong credit and want to avoid tapping into home equity. Don't settle for the first contractor you meet. Make sure to get multiple bids and ask for itemized estimates to see exactly how much is being allocated to materials, labor and overhead. This can help you spot markups, negotiate better rates and make informed comparisons. While the pause in the highest tariffs offers some relief, many in the home renovation business are preparing for continued volatility. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
