Trump’s New Trade War Front – Labor, Bags and Sneakers

$61.6 billion: The administration of President Donald Trump may launch an investigation of Chinese labor standards using the section 301 review process. The prior section 301 review of intellectual property rights kicked off additional duties of 10% to 25% on $250 billion of Chinese capital goods exports to the U.S. A labor-based review would likely sanction apparel, textiles, leather products and footwear. Most of those are so far are not subject to the additional duties. U.S. imports from China of the four groups were worth $61.62 billion in the 12 months to Sept. 30, with China representing 40.7% of total U.S. imports of those products. Leading products include luggage ($6.16 billion, already subject to 10% duties), sneakers ($4.69 billion) and sweaters ($4.61 billion). Companies including Ralph Lauren and Steve Madden have already indicated they will aggressively shift sourcing out of China. Other major importers from China include Target, Walmart, Samsonite and Skechers.