The American shoe industry cannot decouple from Chinatrendoneshoes
Chairman of the American trade association: the American shoe industry cannot decouple from China.
“Both U.S. and Chinese manufacturers and consumers are victims of the U.S. government’s tariff policies, from which no one can benefit.”Matt priest, President of the national footwear wholesalers and retailers association, recently told the newspaper.
The American shoe wholesalers and retailers association has more than 500 member companies, accounting for 90% of the shoe manufacturers in the United States.”There has always been a voice in the United States talking about the possibility of decoupling since the u.s.-china trade friction broke out,” said priest. From the perspective of the us shoe industry, such decoupling is totally unthinkable. China has plenty of labor and production capacity, and a strong supply chain between the United States and China. It is a fundamental fact that the us shoe industry cannot decouple from China.”
“The us administration’s repeated claims that ‘China will pay for the tariffs’ are clearly not true and will eventually be passed on to us consumers.”In the 1930s, the hoover administration introduced the smoot-hawley tariff act, which sharply increased import tariffs on more than 20,000 foreign goods in an effort to reduce imports and clear domestic backlogs, leading to a global trade war and a sharp drop in U.S. exports, said prest. This is believed to have been one of the factors that plunged the United States into the great depression and brought disaster to the world. History could repeat itself today.”Tariffs will lead to higher commodity prices, which in turn will lead to lower demand, lower sales, lower profits and inflation.”Imposing tariffs would hurt the economic outlook of the United States itself and affect the global economy.”
It’s not just priest’s concern. On August 28, a coalition of more than 160 U.S. business groups sent a letter to the U.S. government demanding that tariffs on Chinese goods be delayed, saying they would hurt American workers and consumers and have a negative impact on the U.S. economy. Us investment bank Goldman sachs (203.44, 4.27,2.14%) recently released a report saying that the uncertainty caused by the trade war will push the us economy into a recession cycle.
Priest served as deputy assistant secretary of commerce for textiles and apparel.”Business development requires a stable policy environment and policy predictability. Unfortunately, I see no coherent policy from this administration, and the rhetoric today and tomorrow may be very different. In this case, how can we make long-term business plans? This uncertainty is a serious impediment to American business.”
Priest told reporters that he has visited China 25 times and has established good cooperative relations with Chinese partners. He believes that China’s market economy is improving day by day and the positive progress made in ipr protection and market access is obvious to all.