Shop ‘til you drop – or when the trade war ends? Luxury goods companies are reducing prices of their women’s clothing and accessories in China due to the trade war heating up on both sides of the Pacific. Louis Vuitton was the first luxury goods maker to lower prices in 2018 followed by Hermès and Gucci in order to stabilize imports amid the ongoing China-U.S. trade war. The retail price reduction in mainland China is poised to make luxury items more attractive to domestic consumers. In the event these two superpowers argue, it impacts the world, and President Donald Trump’s tariffs on imported goods are not going down well with the fashion world.
Fashion brands and consumers are caught up in a complex trade war between China and the U.S. over tariffs. U.S. tariffs impose a levy on items including silk, leather, wool, cotton, handbags, gloves, hats, and more. Meanwhile, American clothing and footwear brands are anxiously watching what unfolds between the U.S. and China since the U.S. imports the vast majority of its clothing and footwear, and China is by far the largest source.
On February 8, 2019, attorneys and trade representatives will explore the recent and ongoing trade war with China and the expected impact upon the fashion industry at the Fashion Law Conference in New York, New York. Register now for this momentous Federal Bar Association conference at www.fedbar.org/fashionlaw19.
In “Trade Wars with China: Analysis of Outcome,” Fashion Law Conference panelists will break down how trade wars work, and what are the expected benefits and drawbacks upon the U.S. Panelists Zhiwei Chen (Crowell & Moring), Deanna Clark Esposito (Clark-Esposito Law Firm PC), Frances Hadfield (Crowell & Moring), and David Stepp (Crowell & Moring) will discuss how U.S. and foreign companies should prepare for the impact that such a trade war will have upon the import and export of goods in the U.S.
President Trump’s rapidly escalating trade war with China threatens to slap tariffs on billions of dollars worth of goods from the U.S.’s top trading partner. To avoid narrowing their profit margins, U.S. retailers are expected to pass the cost of these levies on to consumers in the form of price increases. Additionally, the disruption to the world’s biggest trading relationship has fashion brands scrambling to find workable solutions, including shifting assembly lines. Yet fashion companies who have global supply chains that are spread across international markets are highly vulnerable to trade wars since any barriers to movement of goods could be significant.
To what extent does the trade war give an opportunity to China’s competitors, such as India, Vietnam, Ethiopia, and Cambodia, to pick up their respective market shares in the U.S. market? How will the tariffs transform supply chain solutions and supply chain strategies? What price reduction strategies will win over Chinese and American consumers? These and other pressing trade war queries will be addressed at the upcoming Fashion Law Conference. Join the Federal Bar Association for a high-energy conference focused on the advancement of fashion law in today’s globalizing world.
Wars inevitably have winners and losers. But is a détente on the horizon? The 2019 Fashion Law Conference in New York City is sure to be an eye-opening exploration into a new frontier for those studying and working in fashion, finance, international relations, and the law. Sign up today for the FBA’s Fashion Law Conference at www.fedbar.org/fashionlaw19.
Stacy Slotnick, Esq. holds a J.D., cum laude, from Touro Law Center and a B.A., summa cum laude, from the University of Massachusetts Amherst. She performs a broad range of duties as an entertainment lawyer, including drafting and negotiating contracts; addressing and litigating trademark, copyright, patent, and other IP issues; and directing the strategy and implementation of public relations, blogging, and social media campaigns.