Customs can increase prices for clothing and shoes by more than 7 percent

The American consumers: inside must adapt to possible price increases in clothing. It is estimated that prices will increase by about 8 percent due to the tariffs announced last week. This could mean that a typical piece of clothing such as a sweater or jeans that costs $ 90 (82.50 euros) becomes $ 7 more expensive. The far -reaching effects are due to the fact that around 97 percent of the clothing bought in the United States comes from abroad.

The newly introduced tariffs on the most important clothing producers – China (34 percent), Vietnam (46 percent), Bangladesh (37 percent) and India (27 percent) – will significantly raise import costs.

Who will bear the costs?

Despite the efforts of some manufacturers: inside, to alleviate the effects of the expected tariffs on China by relocating production, the problem has increased by expanding these tariffs to other important procurement countries.

Customs act like a tax on imported goods, which means that US companies that import shoes must first bear the costs. However, it is on another sheet whether these costs are passed on to consumers. Single and wholesalers: Inside, can be bound to pre-negotiated contracts or decide to cover part of the additional costs themselves in order to remain competitive. To what extent the prices for consumers: rise inside depends on the flexibility of the supply chain, the brand strategy and the sensitivity of the market for price increases.

To illustrate the possible cost effects: An average additional tariff of 38 percent is charged on a medium price range with a free-I-Bord price of $ 18, which corresponds to an additional $ 6.84.

These higher import costs for clothing items, which ultimately cover a wide range of prices, leave the critical question open how the financial effects across the entire supply chain, from manufacturers and wholesalers: inside to the retailers: inside and finally the consumer: inside, are to be distributed inside.

Shoe prices rise by over 7 percent due to tariffs

After the new import duties announced last week, the Americans will have to expect a significant increase in shoe prices. A few shoes that currently costs $ 100 in retail could soon cost $ 107 if the additional tariffs penetrate the supply chain.

Last year alone, China and Vietnam exported shoes worth $ 18.5 billion to the United States, which makes up almost 70 percent of all shoes introduced to the USA.

Relocation of production hardly helped

Many shoe manufacturers: In the inside, the customs increases came and had already started moving their production to countries outside of China, hoping to avoid the effects of the new trade measures. However, the latest customs tariff list shows that no important country of manufacturers is excluded, so that global shoe production is affected in a larger scale.

These numbers are the direct customs costs that are incurred before the shoes are sent, distributed and opened for retail-the final prices between less than $ 50 and over $ 500 can be.