- Don-Alvin Adegeest |
The announcement of the U.S. placing new tariffs on Chinese-made goods is escalating the trade war as China said it has no choice but to retaliate. The new tariffs are set to take effect on 24 September.
Jack Ma, chairman of Chinese conglomerate Alibaba, stated Chinese businesses would move production to avoid the tariffs and called for stronger trade rules, at a speech to shareholders. “Even if Donald Trump retired, the new president will come, it will still continue...We need new trade rules, we need to upgrade the World Trade Organisation,” London’s City AM newspaper noted.
PresidentTrump said the US would impose 10 per cent tariffs on around 200 billion dollars (152 million pounds) of Chinese imports as of 24 September – and that it could rise to 25 per cent in January, noted City AM.
According to Bloomberg the American textile industry could benefit from the newly imposed tariffs. As China sold more textiles and apparel to the U.S., American jobs have suffered. With duties placed on finished garments and accessories imported from China, American manufacturers could compete better on price and generate more orders for U.S.-made textiles.
But while U.S. manufacturers may benefit, consumers will ending up paying the difference. It is no secret fast fashion retailers and brands rely on competitively priced Chinese manufacturing. By importing affordable garments retailers and brands and keep costs low and secure sales back home. Should these prices go up, either American consumers, if not American businesses, will have to foot the bill.