Democratic House Unlikely to Stop Tariffs, Business Should Prepare for Worst, USFIA Panelists Say
NEW YORK -- The Section 301 tariffs largely have spared apparel, but U.S.-China Business Council Vice President Erin Ennis told industry representatives that tariffs on all remaining Chinese goods could follow. "You should hope for the best, but, as businesses, you should be planning for the worst on that front," she said. "We're not at the end of this yet." Ennis was speaking at the Apparel Importers Trade and Transportation Conference Nov. 7.
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The organizers of the conference -- hosted by the American Import Shippers Association and the United States Fashion Industry Association -- did a quick poll of conferees on how long they think U.S.-China tariffs will last. Not even 10 percent said they believe the trade war will be resolved as a result of meetings during G-20 in Argentina at the end of the month. Just over 40 percent predicted they'll stay in place through 2019, and 45 percent said they'll be in place for the foreseeable future.
David Spooner, USFIA Washington counsel, told the attendees not to expect the new Democratic majority in the House of Representatives to rein in President Donald Trump on tariffs. There will be a hearing about the exclusion process, he predicted, but that's about it. "I share everyone's pessimism about the tariffs going away," he said.
Still, Spooner emphasized Trump's unpredictability. He noted that the threat of list three of the Section 301 escalating to 25 percent on Jan. 1 (see 1810290020) was completely unplanned, and that top trade officials didn't know that Trump would say it until it came out of his mouth. "I wouldn't discount the fact that Trump could meet Xi at any time and declare victory."