US-China Trade War Continues To Impact Textile Industry

The new US government which is leaded by Joe Biden now focus in the Section 301 tariffs on finished apparel and textile imports from China. Tariffs were first proposed by the US in May 2019 to address intellectual property theft and other predatory trade practices by China. Since that period, a number of tariffs and counter tariffs were imposed on import of commodity.

However, because of the COVID-19 pandemic, the US government gave special treatment to some Chinese products, contents textiles and apparel, which have now been lengthened until March 31, 2021.

Meanwhile, the Chinese government has decreased sliding tariffs on cotton commodities imported under additional quotas. It has increased the number of products with lower than MFN tariffs and imported under temporary import tariffs from 859 earlier till 883 since January 1, 2021. The cost of importing cotton fibre to China would be reduced due to the lower sliding tariffs.

Whatever, the US residents and businesses have received more than $72 billion additional tariffs on those products already after the China 301 tariffs were started. It do affected the money in the pockets of US residents, slow down the speed of US manufacturing, and reduced competitiveness for American businesses.