US President Donald Trump recently threatened to impose a tax on a range of Chinese shoes, clothing and consumer electronics.A move that could pose a threat to some of China's most successful manufacturers,including the leather belts suppliers.
Yu Yuan and Li Feng are the first to feel the effects of a trade war.They export nearly $450 billion worth of Chinese goods each year to the United States.While Li Feng offers clothing, toys and other products to retailers, Wal-Mart and Macy's are their customers, while Yu Yuan is supplying Nike and Under Armour.According to the data, about 25 per cent of Yu Yuan's sales and almost two-thirds of Li Feng's revenues came from the US market.
But in this trade war, Chinese manufacturers will not be the only injured party, the role of their US brand suppliers will likely have a chain reaction.The American apparel and footwear association says the United States imports 98 percent of shoes and 97 percent of its clothing, mostly from China.
"To be honestly,every industry will be affected, and we are more concerned about the impact that will have on the daily spending of American consumers."Said Hun Quach,who is the vice President of international trade at the Retail Industry Leaders Association in Arlington, Virginia."The punitive tariff on any imported product will lead to a sharp increase in the prices of clothing, electronics, household goods and other commodities."
Some companies that assemble products in China, such as Apple, may also be hurt.Samsonite International SA, which produces some of its products in China, could also be affected.
In addition, Catherine Lim, a retail analyst at Bloomberg Intelligence, points out that many Chinese manufacturers have shifted production to southeast Asia over the past three years, which could ease the trade crisis with the US.As a wholesale belts supplier,we really hope that this trade war won’t be continuous.