WASHINGTON, D.C.-The U.S. announces a suspension of a tariff hike scheduled to take effect Oct. 15. The proposed hike encompassed $250 billion in Chinese imports.
A report from the Associated Press says the tariff hike was set to rise from 25%-30%, but the two countries reached a ‘cease-fire’ on Friday. As part of the agreement, China reportedly agreed to buy as much as $50 billion in U.S. farm products. The back-and-forth between the two nations has had a ripple effect in the apparel market because of China’s prominence in the industry.
According to the American Apparel and Footwear Association (AAFA), more than 40% of apparel imports originate in China. On Sept. 1, the Trump Administration imposed a 15% tariff on more than $100 billion in Chinese goods, which included clothes, shoes, and sporting goods.