The owner of Calvin Klein and Tommy Hilfiger has warned that a full-blown trade war between the U.S. and China could lead to price hikes across the fashion industry and that moving production to other countries might not be the answer. “If there are broad-based tariffs across all Chinese production, I think it’s going to put pressure on the entire industry to raise prices,” Emanuel Chirico, chairman and chief executive officer of PVH Corp., told WWD. After already slapping China with $50 billion worth of tariffs, the U.S. is gearing up to target another $200 billion worth of items with additional 25 percent levies, including many consumer-facing products such as handbags and travel accessories, but so far apparel doesn’t feature heavily on the list. However, that could change as President Trump has threatened to impose levies on all Chinese imports if the U.S. is further provoked, which according to Chirico, is far from the best approach, although he still believes China’s trade practices are a problem that needs to be dealt with. “We are not supporters of tariffs as the main weapon in trade negotiations,” he said. “Clearly, China needs to be addressed and we think having a cohesive global perspective bringing together Canada, Mexico
Read More...
from WWDWWD https://ift.tt/2MATMaU
Follow WWD on Twitter or become a fan on Facebook.
from WWDWWD https://ift.tt/2MATMaU
Comments
Post a Comment