Americans will pay more for sneakers, jeans, T-shirts due to tariffs

NEW YORK: Sending children back to school in new sneakers, jeans and T-shirts is likely to cost US families significantly more this fall if the bespoke tariffs President Donald Trump put on leading exporters take effect as planned, American industry groups warn.

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About 978 of the clothes and shoes purchased in the US are imported, predominantly from Asia, the American Apparel & Footwear Association said, citing its most recent data. Walmart, Gap Inc., Lululemon and Nike are a few of the companies that have a majority of their clothing made in Asian countries.

Those same garment-making hubs took a big hit under the president's plan to punish individual countries for trade imbalances. For all Chinese goods, that meant tariffs of at least 548. He set the import tax rates for Vietnam and neighbouring Cambodia at 468 and 498, and products from Bangladesh and Indonesia at 378 and 328.

Working with foreign factories has kept labour costs down for US companies in the fashion trade, but neither they nor their overseas suppliers are likely to absorb newcosts that high. India, Indonesia, Pakistan and Sri Lanka also got slapped with high tariffs so aren't immediate sourcing alternatives.

"If these tariffs are allowed to persist, ultimately it's going to make its way to the consumer," said Steve Lamar, president and CEO of the American Apparel & Footwear Association.

Another trade group, Footwear Distributors and Retailers of America, provided estimates of the price increases that could be in store for shoes, noting 99% of the pairs sold in the US are imports. Work boots made in China that now retail for $77 would go up to $115, while customers would pay $220 for running shoes made in Vietnam currently priced at $155, the group said.