Following the issuance of a joint United States-European Union trade agreement framework Steve Lamar, president and CEO of The American Apparel & Footwear Association (AAFA) and Steven Kolb, president of the Council of Fashion Designers of America (CFDA) have made the following joint statement:
“We are grateful to U.S. President Donald J. Trump, EU President Ursula von der Leyen and the rest of the negotiating teams for ensuring that the new 15 percent reciprocal rate is not stacked on top of existing high most-favored nation (MFN) rates that the U.S. fashion industry has long been paying on imports of inputs, equipment and finished goods.”
The two association leaders go on to say, “We are urging the U.S. to embrace this vital non-stacking concept in other deals, so that fashion industry can continue to directly and indirectly support more than 10 million U.S. workers as we design, make, market and sell safe, affordable, authentic, and responsibly made clothes, shoes and accessories.”
Apparel, Footwear Already Bear and Unfair Tariff Burden
According to AAFA, prior to the Trump administration’s recent spate of tariff initiatives, the U.S. fashion and footwear industries were already shouldering what it describes as a disproportionate tariff burden.
Per the association’s “Fashion Tariff’s 101” web page, in which it explicitly describes tariffs as taxes: “It’s no secret that much of the clothing and footwear you purchase is imported… What is surprising is that American brands and their consumers are footing a tariff burden that is outdated, regressive, and even misogynistic.”
Specifically, the association says:
- The average effective tariff rate on both footwear and apparel is over five times higher than on all other U.S. imports.
- Fashion’s share of total U.S. imports is about 5 percent while fashion’s share of total duties is more than 25 percent.
- Tariff rates on women’s clothes and shoes are about 3 percent higher on average than tariffs on men’s clothes and shoes.
The association goes on to say: “Fashion tariffs are also regressive, not only by disproportionately taxing the disposable income of lower-income American more than their richer counterparts, but also by charging higher tariff rates on product that they buy in greater quantities than wealthier Americans. For any conversation regarding new tariffs, it makes sense to address the longstanding gender and income discrimination.”
For more on the AAFA’s positions and the impact of tariffs on the fashion and footwear industry, click here.
