A surprise vow of President Donald Trump’s slap new tariffs on Mexican goods might end up hurting retailers. The retailers are already threatened by the ongoing tit-for-tat trade conflicts between China and the United States.
On, Thursday evening Trump announced on his Twitter account that the United States is all set to impose a 5% tariff on 10 June on all Mexican imports.
Moreover, jean makers can one of the main victims of the New Mexican tariffs in the retail industry. As per the American Apparel & Footwear Association Mexico is the largest supplier of boys and men’s to the United Stated representing around of imports.
AAFA (American Apparel & Footwear Association) also said that the country south of the U.S. border is overall the 8th biggest largest supplier of apparel and the 7th biggest supplier of footwear to the United States market. The association likened the tariffs to tax U.S. businesses, consumers and workers and said that it would increase prices for cars, jeans and other customer-facing goods and products.
President and CEO of AAFA, Rick Helfenbein said in a statement that, “The baseline is that these tariffs are terrible for the economy of America.” In a later interview, he also said that the tariffs can make it more complex for negotiating the business deals.
He said, “It’s trust”. “Who do you trust? If you cannot faith the partner you are trading with if your business disrupts overnight by a tweet and why would you do business with them?” He also added that “This is a complexity we are facing with China, as we are losing face as a negotiating board; they are turning back on us as the Chinese are all about face.”
