American Apparel & Footwear Association: Tariffs Have to Go Away

The video discusses the impact of tariffs on the American apparel industry, highlighting the challenges faced by retailers due to increased costs and margin compression. It explores the lack of tariff relief from trade deals and the resulting economic impact. The discussion also covers supply chain shifts, with China remaining a key partner despite efforts to diversify. The video concludes with insights into lobbying efforts to address these issues and the potential long-term effects on the economy.

What is the expected impact on earnings in early 2020 due to tariffs?

• Stable earnings

• Earnings growth

• Severe margin compression

• Increased earnings

Why does the trade deal not provide relief to the apparel industry?

• It is not yet signed

• It increases tariffs further

• It does not address tariff relief

• It only benefits the technology sector

What percentage of apparel coming into America is affected by tariffs?

• 25%

• 50%

• 41%

• 75%

Why do companies find it difficult to move away from China as a supply chain partner?

• China has exclusive materials

• Other countries have better infrastructure

• China offers the cheapest labor

• China has been a reliable partner with good practices

What is the main reason retailers are hesitant to raise prices despite tariffs?

• Increased competition

• Government regulations

• Lack of supply

• Fear of losing customers

What is the primary goal of lobbying efforts by the apparel industry?

• To increase tariffs

• To remove tariffs

• To gain subsidies

• To expand into new markets

What is the potential consequence for the apparel industry if tariffs remain?

• Expansion into new regions

• Higher profits

• Untimely demise

• Increased market share