Trade associations in the retail, footwear and apparel space expressed disappointment over United States Trade Representative Katherine Tai’s announcement on the Biden administration’s China trade policy that called for existing tariffs to remain in place while restoring the ability of U.S. importers to seek exemptions from those levies.

The NRF’s Senior Vice President of Government Relations David French said in a statement, “American businesses across the country continue to be severely impacted by the tariffs put into place by the previous administration. Today’s long-awaited announcement proved the Biden administration’s trade strategy on China to be lackluster at most, and will further inflict unnecessary damage to the American economy and retail supply chains.

“The continuation of these harmful tariffs worsens the challenges thousands of retailers must navigate, especially at a time when many are only beginning to emerge from the serious economic damage they have suffered as a result of the global pandemic. Because these tariffs touch products in nearly every sector of the U.S. economy, they also ultimately force consumers to pay higher prices.

“It is critical the administration initiate immediate discussions with China so we can level the international playing field and bring an end to the global supply chain disruption.”

Austen Jensen, senior vice president, government affairs at the Retail Industry Leaders Association, said, “Retailers appreciate Ambassador Katherine Tai’s acknowledgment that certain Section 301 tariffs have not generated any strategic benefits and instead raised costs on Americans. We implore the Biden-Harris administration to pursue a trade strategy with China that better aligns with our nation’s goals and objectives without punishing American retailers and consumers with higher taxes.

“As retailers navigate the challenges of global supply chains made more complex by the ongoing pandemic, it’s critical that the tools used in our trade relationships be effective, precise, and intentional. Sec. 301 tariffs have cost consumers more than $350 billion since 2018 and have yielded little strategic benefits. Retailers urge Ambassador Tai and the Biden-Harris administration to work towards eliminating existing tariffs as they move to realign our trade relationship with China.”

American Apparel & Footwear Association President and CEO Steve Lamar said in a statement, “At a time when the industry is struggling with an unprecedented supply chain crisis due to our crumbling infrastructure, economic fallout from a damaging pandemic, and unprecedented freight costs, it is distressing that the administration has chosen to continue to subject U.S. companies to these damaging taxes. Although restarting an exclusion process is an important step forward, the far better course would have been to discontinue the use of these tariffs entirely.

“The tariffs currently being imposed on clothing, footwear, and travel goods were part of a failed trade war strategy. As we have learned during the past couple years, trade wars are not ‘good and easy to win’ and, in fact, such tariffs are hurtful to American consumers, American workers, and American business.”

AAFA said it has been a vocal advocate for the removal of the Section 301 tariffs and the ongoing supply chain disruption, including a recent letter to Ambassador Tai calling for tariff exemptions to help American companies.

Footwear Distributors and Retailers of America (FDRA) President and CEO Matt Priest said in a statement, “We appreciate the Biden Administration conducting a comprehensive review of U.S. China policy and re-engaging with China on matters of trade. No matter what the outcome of the U.S.-China talks, we strongly urge the Administration to remove tariffs on footwear and oppose any new shoe tariffs. This is critical because we currently face significant inflationary pressure, as well as unprecedented ocean shipping costs and transit delays. Removing all footwear tariffs would help alleviate some of this cost pressure hitting working Americans disproportionately. We are encouraged by the announcement today that the Administration will start a new 301 tariff exclusion process so that U.S. companies can seek some tariff relief during this difficult time. The Biden Administration should grant exclusions on tariffs applied to products unrelated to China’s industrialized China 2025 policy. Footwear is not a focus of the China 2025 policy, therefore footwear should not be a focus of any U.S. trade enforcement measures.”

Photo courtesy Reuters