What will it affect the textile and apparel market? The $120 billion worthy goods which was raised tariff from September 1 have covered most of the textile and apparel. The rest $180 billion worthy Chinese goods planned to implement from December 15 actually involve a small proportion of textiles and apparels. According to the first phase agreement, the additional tariff for the $120 billion worthy goods which cover most of the textiles and apparels will be revised down to 7.5% from the original 15% and the tariff for the $180 billion worthy goods including a small share of textiles and apparels will not be raised. In addition, for the earlier $250 billion worthy goods covering all the chemical fibers and some textiles, the additional tariff maintains at 25%.
As for the influence on the textiles and apparels made of chemical fiber, market players are suggested to hold cautious and optimistic view. The optimistic aspect lies in the improvement of mindset and expectation as it indicates periodical suspension of Sino-US trade war, and the overall status is moving toward better direction. In addition, the tariff for the textiles and apparel involved in has been cut, especially the reduction of additional tariff for $300 worthy Chinese goods covering most textiles and apparels from 15% to 7.5%, and the tariff for a small portion of goods will not be raised. Therefore, the first phase Sino-US trade agreement is greatly helpful for the textiles and apparels sector, with more apparent impact compared with other goods.
The cautiousness lies on:
1. The tariff involved in Sino-US trade conflict has not been totally removed, especially in textiles and apparels made of chemical fiber. only tariff for some goods is revised down to 7.5% from 15%.
2. Currently, the two parties only reach agreement on the document, and subsequent legal procedures and endorsement of both parties are still needed, still having variables.
3. If there are major differences between the two parties in the implementation of the agreement in the future, it is not ruled out that the agreement will be abolished and Sino-US trade frictions will be repeated. Finally, after reaching an agreement on the first stage, will there be an increase in foreign trade orders?
Export orders for textiles and apparels are likely to grow after the tariff being adjusted down, but the growth may be limited when not all the additional tariff is being removed and variables still exists. Market players are anticipated to wait for clearer tendency in later period.
note: this information is from the chinatexnet,for reference only
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