Trade war hits fashion: sales in the US will fall 5% in 2020
According to Moody’s latest report, tariffs on Chinese imports will affect clothing and footwear retail in the American market between the next twelve and eighteen months.
Trade war hits fashion. Tariffs on Chinese imports will affect clothing and footwear retail sector in the American market between the next twelve and eighteen months. Sales in the United States will fall by 5% in 2020, according to the latest Moody’s report.
“Risks such as commercial friction and Brexit will affect companies and consumers, because the pressure within the sector will increase," stated the rating agency. Last September, the United States imposed a 15% tariff on most of China’s clothing imports and plans to apply another tax on December 15.
The strengthening of the dollar is another issue that will affect the sector, since it will mean an increase in costs. “Fashion companies buy products abroad with American dollars, and sell abroad in local currency, so a stronger dollar will increase costs,” Moody’s stated.
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