Retail Set To Revolt – As President Trump Plays Politics With China

At what point do we stick our heads out the window and scream: I can’t take it anymore? Cue lines are forming outside bankruptcy court; disturbing news hits the papers about Neiman Marcus / J.Crew; politicians start to attack our China sources of supply; and – to think – this was just a (new) normal week for retail in America! While significant blame is shared for our fashion industry problems, absolutely no one wants to go bust, and everyone wants a successful bounce-back. However, staring in the mirror – the image that flashes back combines private equity, tariffs, China Phase One, and coronavirus – all with a separate and distinct role in our retail crisis du jour.

The problem going forward is that our industry’s China agony is about to get worse, because our sourcing lifeline will be targeted for the next election. Trade data indicates that 40% of our apparel, 65% of our footwear, and 80% of our accessories are still sourced in China, and several political barbarians are lining up at the gate to inflict further damage to our already weakened source of supply. Honestly, we don’t want to be caught up in that, especially at a time when we need positive help from the Federal government. Read more at Forbes.

4 Replies to “Retail Set To Revolt – As President Trump Plays Politics With China”

  1. Please keep in mind, China never approached the US saying we can make your products for less..! What we are all experiencing is the other side of the sward of capitalism. Always looking for more more more profits, it was large corporations and companies going to China, and asking them if they could make our products and for far less then made in America. Keep in mind not that long ago Walmart use to brag all their products were made in America!! Today they have nothing made in America, mostly all made in China. The Chinese government is horrible and treats their people beyond words, but the Chinese people are wonderful people and are always willing to please and help with anything you need them to make. The tariffs put on Chinese imports only raised the prices and all us Americans are paying that in import taxes. Want to lay blame, look at our government and corporate america. Seriously, when is enough enough.

    1. My father and made a decision a long time ago ( more than 15 years Ago) that we would not use China as a source for tailored clothing. Most of our tailored clothing is produced in Canada and the USA. Most accessories are European. We have some product from Asia but we try to stay clear of China. Perhaps now vendors and fellow retailers will see the error of their ways. Hope it’s not too late.

    2. You are exactly right Bill….. you nailed it and enough is enough right now ….. the only way to change this is at the polls but we need to start rattling the cages right now ….. big changes are long past due …. The TV reality show Is no longer trending and we need to repair the damage and correct our course as a people and as a country .

  2. US policy acting on behalf of capitalist desires (demands? ) created the reality of China and every other country that builds products of all manner for USA consumption at the direction of American companies. It’s a huge subject, the stuff of tomes, not brief emails. But this layman’s common sense tells me that US policy will be the only thing that corrects course, correcting the path that was embarked on 45 years or so ago, post Nixon. That’s not going to happen without a lot of feathers in the air as the subject gets elevated to political fodder. It’s going to go to the highest bidder, though, don’t be fooled. And again, OUR piece of this pie is not the ONLY piece. It’s going to be fascinating, if scary to watch.

Comments are closed.