Latest news with #SteveLamar
Yahoo
16-07-2025
- Business
- Yahoo
Shoe Prices Dip in June but Tariff Pressures Could Lead to Increases Later This Year, FDRA and AAFA Say
Shoe prices were lower again in June as overall inflation climbed last month, according to the latest data from the Footwear Distributors and Retailers of America (FDRA). In June, retail footwear prices dipped 0.6 percent, the smallest decline in the last four months, the FDRA noted. This comes as prices were mixed across each target market last month. Men's footwear prices grew 0.2 percent, the first increase also in four months. But, women's and children's shoe prices both declined 1.1 percent from the same time last year. More from WWD President Trump's Tariffs Spark Reactions in Italy Mexico, EU Tariff Threats Follow Double-digit Trend: How Shoe Firms Are Responding Trump Tariffs Hit America's Furniture Heartland as Howard Miller Company Announces Closure Gary Raines, chief economist at FDRA, told FN that last month's declines 'peg year-to-date footwear prices modestly lower from the same first half of last year.' 'But we note up the supply chain average duties per pair on footwear imports are surging,' Raines said. 'These sharply higher duties soon may push the average landed cost of footwear imports sharply higher, which in turn may pressure retail footwear prices to climb later this year.' Steve Lamar, president and chief executive officer of the American Apparel and Footwear Association (AAFA), added that 'inflation continues to be on everybody's minds, particularly with the high tariffs that have been imposed on all our supplier countries.' 'Today's data suggest that these costs are beginning to work their way through supply chains as cost and price increases on other parts of the economy, just as we expect they will thread their way through our supply chains too,' Lamar said. 'Our hope is that new deals, with permanent and manageable tariff levels and rules, can quickly be negotiated and announced so we can get ahead of these expected cost pressures.' Last month's drop in retail footwear prices also comes at the same time the Bureau of Labor Statistics reported that overall inflation ticked higher in June. The bureau's latest Consumer Price Index (CPI), a broad measure of goods and services costs across the U.S. economy, saw prices increase 0.3 percent on a seasonally adjusted basis in June, after rising 0.1 percent in May. Prices were also up 2.7 percent over the last 12 months, after rising 2.4 percent the prior month. Excluding volatile food and energy costs, the core CPI rose 0.2 percent in June and increased 2.9 percent over the same time last year. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Sign in to access your portfolio
Yahoo
03-07-2025
- Business
- Yahoo
Trump Announces ‘Great Deal of Cooperation' With Vietnam, Lowering Tariff Rate
President Donald Trump took to Truth Social Wednesday to announce a trade deal with Vietnam, which includes a 20-percent tariff on the country's exports to the U.S. market. The president wrote that a conversation with the country's general secretary, To Lam, led to the resolution, which includes a zeroing-out of duties for American-made goods imported into Vietnam. 'It will be a Great Deal of Cooperation between our two Countries,' Trump wrote, noting that the U.S. will have 'TOTAL ACCESS to their Markets for Trade.' More from Sourcing Journal Tariff Fears Prompted Some Shoe Firms To Get Out of China Fast: But Did They Move Too Quickly? US Tariff Whiplash Hits Importers as Maersk Warns of Overpayments NCTO Urges House Leaders to Preserve Provision Ending De Minimis in Updated Megabill Notably, the deal also includes a 40 percent tariff on transshipments, meaning that goods originating in another country that are routed through Vietnam before being transported to the U.S. will face a higher duty rate. Vietnam, which shares both a border and an integrated supply chain with China, imports many materials, components and inputs used for the creation of footwear and apparel. The country has also been fingered as a vehicle for the transshipment of finished goods from China as a means of circumventing trade barriers. American Apparel and Footwear Association (AAFA) president and CEO Steve Lamar was optimistic about the terms of the deal, which will replace the 46-percent 'reciprocal' tariff on Vietnam announced by Trump on April 2. Following a 90-day deferral period ending on July 9, those steep 'Liberation Day' duties will go into effect for most U.S. trading partners—unless they can reach a consensus with U.S. trade officials swiftly. 'AAFA is pleased that further progress is being made on reciprocal trade deals, and we hope to see additional news in the coming days. With respect to Vietnam—the second largest supplier for footwear, apparel, and accessories sold into the U.S. market—we look forward to learning the details related to today's news so that we, together with our members, can evaluate how well it will provide relief and certainty,' Lamar said. 'Is vital that the final terms of this deal, and any future deals, enable U.S. brands and retailers, and our 3.6 million American workers, to continue to be able to supply American consumers with affordable, responsibly made, ethically sourced, and authentic fashion,' he added. Footwear firms have waited with bated breath for a trade truce with Vietnam, given that more than half of all athletic shoe imports originate in the country. Footwear Distributors and Retailers of America (FDRA) president and CEO Matt Priest said the nation is 'essential to the U.S. footwear supply chain.' Last year, the U.S. brought in a whopping 274 million pairs of shoes from Vietnam, a $10.6-billion value. Priest said the country is on track to become America's largest footwear supplier in 2025, usurping China's long-held title. 'Disrupting that pipeline with additional tariffs would hit American consumers and our industry hard,' he said, as many shoes (especially performance styles) already carry a 20-percent tariff burden. 'Piling new tariffs on top of that isn't just unnecessary—it's bad economics. The administration should acknowledge the steep footwear duties already in place and avoid adding more strain to American families and businesses,' Priest added. Meanwhile, the president's goodwill toward another nation appears to have dissipated. Trump floated the idea of raising tariffs on Japan to between 30 percent and 35 percent amid difficult negotiations that have dragged on for weeks. The country's reciprocal tariff rate was set at 14 percent on April 2, which would stack on top of the 10-percent universal baseline duties. Despite saying Tokyo and Washington have enjoyed a 'great relationship,' he also told reporters aboard Air Force One on Tuesday that Japan has 'ripped us off for 30, 40 years,' with the chief complaint being that the country does not purchase enough American cars or rice. Referring to Japan as 'very tough' and 'very spoiled,' the Commander in Chief expressed doubt that the partners could come to a deal. As he's intimated before, Trump said he would send the country a letter setting its tariff rate at up to 35 percent or 'whatever the number is that we determine.' Those comments came on the heels of questions from reporters about a possible extension of the July 9 deadline. Trump reiterated that he would not extend the pause on duties. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
03-07-2025
- Business
- Fibre2Fashion
US AAFA writes to Massachusetts committee opposing The Fashion Act
The American Apparel & Footwear Association (AAFA) recently wrote to the Massachusetts joint committee on environment and natural resources sharing its concerns over The Fashion Act (H1032), aimed at environmental accountability in the fashion industry. While the legislation is well intended, it creates a costly and burdensome regulatory mechanism that cannot effectuate the results it seeks, AAFA noted. US trade body AAFA wrote to the Massachusetts joint committee on environment and natural resources sharing its concerns over The Fashion Act, aimed at environmental accountability in the fashion sector. The act creates a costly and burdensome regulatory mechanism that cannot effectuate the results it seeks, AAFA noted. It does not allow for full alignment with the Science-Based Targets Initiative. The act establishes requirements that do not align with standards and initiatives referenced in the act, as well as legislative and regulatory requirements to which the fashion industry is already subject, AAFA president and chief executive officer Steve Lamar wrote in the letter. This lack of harmonisation creates an unnecessarily complicated compliance framework for companies without providing a material sustainability benefit. In some instances, such conflicts can undermine the goals of the initiatives to which the legislation points, he noted. Harmonisation with European Union (EU) regulations will be critical and it will also be important to learn from what was unworkable for the EU, the letter said. The European Union's Corporate Sustainability Reporting Directive (which applies to many US companies, both in and outside the fashion sector) and the California Climate Corporate Data Accountability Act (SB 253) both currently require covered companies to report on their greenhouse gas emissions. The Fashion Act does not align with the established timelines or assurance levels in either piece of legislation. It does not align with other pending climate legislation in New York, New Jersey, Colorado or Illinois as well, AAFA remarked. While The Fashion Act requires fashion sellers to set targets, it does not actually allow for full alignment with the Science-Based Targets Initiative (SBTi) . The act prohibits some sellers from using intensity-based targets, even though SBTi validates such targets, the AAFA letter said. Holding companies to absolute targets means mergers or acquisitions could put companies out of compliance, while divestment of business would give the appearance of emissions reduction without actual achievement, the letter noted. The act provides overly prescriptive data collection requirements that are not required by SBTi, and are not actually implementable, AAFA observed. Despite the industry adhering to dozens of chemical regulations across the globe, The Fashion Act piles additional, impractical requirements that are not aligned with existing programmes and would actually discourage the addition and detection of new chemicals in wastewater, Lamar wrote. 'Sales of fashion products by third-party sellers on online marketplaces would be exempt from the requirements under the bill as it is written. If the intention of the legislation is to make marketplaces clean up their production, this bill misses the mark. With third-party sales expected to comprise almost two thirds of all e-commerce sales by 2027, this represents a significant omission,' the AAFA letter mentioned. Finally, the legislation provides no incentives, no diplomatic or technical support and no guidance for the industry to achieve its objectives, it added. Fibre2Fashion News Desk (DS)
Fibre2Fashion
09-06-2025
- Business
- Fibre2Fashion
AAFA, FLA urge Jordan to back labour rights programmes
The American Apparel & Footwear Association (AAFA) and the Fair Labour Association (FLA) recently wrote to King Abdullah II of Jordan urging his government and all constituencies to fully support the future of the International Labour Organisation (ILO)-International Finance Corporation (IFC) Better Work Jordan programme and the Workers Centre, supported by ILO. AAFA and FLA members include hundreds of American, European and Canadian buyers. The American Apparel & Footwear Association and the Fair Labour Association recently wrote to King Abdullah II of Jordan urging his government and all constituencies to fully support the future of the ILO- IFC Better Work Jordan programme and the Workers Centre, supported by ILO. The elimination of these programmes would stymie the growth of Jordan's garment industry, their letter said. ILO-IFC Better Work Jordan and the Workers Centre provide essential protections for and critical services to all workers in Jordan's garment industry—both Jordanian workers and foreign migrant workers, the letter, signed by AAFA president and chief executive officer (CEO) Steve Lamar and FLA president and CEO Jeff Vockrodt, read. These provide buyers the guarantees they need to confidently source from Jordan as they provide assurance that international labour rights standards are being independently assessed and consistently met, both wrote. 'Without the guarantees that these two programmes provide buyers, buyers will lose trust that all workers in Jordan's garment industry are employed in safe, ethical, and fair workplaces,' the letter read. The elimination of these programmes would stymie the growth of Jordan's garment industry, the letter said. 'At a time when buyers have to make significant decisions about the future of their sourcing, the disappearance of these programs will create uncertainty that will turn what should be a great opportunity for Jordan into an opportunity lost,' it added. Fibre2Fashion News Desk (DS)
New York Times
15-05-2025
- Business
- New York Times
How 4 Small Business Owners Are Handling Tariffs on China
President Trump lowered his tariffs on China, and Wall Street breathed a sigh of relief. But for many businesses, especially small ones, 30 percent is still a crippling burden. The 145 percent tariff on Chinese goods that was in place for nearly a month was unthinkably high for businesses large and small. But even at the current levels, the overall average tariff rate on imports to the United States remains at its highest level since 1934, according to a report from the Yale Budget Lab released on Monday. Even Walmart, the largest retailer in the United States, said on Thursday that it would have to raise prices on some items in response to tariff-fueled cost increases. And tariffs could rise again if the two countries do not reach a deal within 90 days. The 90-day pause 'may temporarily help unstick the effective trade embargo that has been in place,' Steve Lamar, the chief executive of the American Apparel and Footwear Association, said in a statement. But, he added, the 30 percent tax will still cause prices to soar during the back-to-school and holiday seasons later this year. 'What's needed now is a long-term deal — not just with China but with all our trading partners — so we can predictably make long-term trade, investment and sourcing decisions,' Mr. Lamar said. Unlike large retailers, which can absorb some of the cost of tariffs and have the heft to pressure suppliers, smaller companies that rely on imports from China tend to have minimal leverage to negotiate with their Chinese suppliers — and relatively tight margins. We talked to four business owners about the strategies they are trying as tariffs cut into their bottom line. Cut the cheapest items Marina Rosin Levine is the chief executive of Highline United, a footwear company near Boston, which makes roughly half of its items in China. This week, she visited her supply chain headquarters in the Chinese city of Dongguan, where conversations centered on a key question: Which shoes can it afford to sell in the United States? The answer might at first sound counterintuitive: Only the company's most expensive shoes — those priced at $200 or more — will start to make their way to the United States. Customers who can afford the more expensive shoes can probably afford the additional cost from the import tax. And margins on lower-value items are too tight for the company to import them and turn a profit. 'That means the consumer with lower discretionary income is the one that's going to be impacted the most in terms of what's in stock,' Ms. Levine said. A pair of $400 boots might be available. But $99 Mary Janes probably won't be, at least for now. Consider layoffs The latest easing is not reassuring to Cheyenne Smith. When Mr. Trump imposed triple digit tariffs on China in early April, Ms. Smith, who designs children's rain boots that are made in China, contemplated drastic measures to save money. She considered closing a warehouse in Salt Lake City where she stores items for her brand, called Dakota Ridge, and laying off her work force of three employees. Her costs were rising at the same time that her sales were falling, dampened by customers' dreary outlook on the economy. Insufficient cash flow, especially for the busy holiday season later this year, became a pressing concern. Mr. Trump's move to temporarily ease up on tariffs offered little relief. 'The word 'temporary' scares me,' said Ms. Smith, who was still considering moving her inventory to her garage and laying off her staff. 'I have zero trust in how long this is going to last, or if it will go higher or lower again.' Put new products on pause Luis Prior, who owns Meavia Toys, a small toy company in Corbin, Ky., said the 145 percent tariff rate on Chinese imports was 'completely unsustainable.' Had it stayed in place for several months, it would have meant the end of his business, which designs sensory toys for children with special needs and manufactures its products in China. Shortly after Mr. Trump unveiled his suite of tariffs on April 2, Mr. Prior halted all production of his toys and held his breath, hoping for a reprieve. Now, with the tariff rate down to 30 percent, Mr. Prior said he planned to restart manufacturing some of his most popular toys again and get them to the United States as soon as possible. Still, tariffs at 30 percent mean higher prices for his customers. And a lack of clarity from the Trump administration on what will happen in 90 days has kept his plans to introduce new items on pause. 'It's still a very unstable and unnerving situation for small businesses that rely on China,' Mr. Prior said. 'I don't know what's going to happen tomorrow.' Split the cost Mike Roach, who co-owns a women's apparel store, Paloma Clothing, in Portland, Ore., made plans on Tuesday to approach his vendors that manufacture in China with an idea: He and his wife, the vendor and the vendor's manufacturer would each take a 10 percent hit. Under that arrangement, shoppers would not see prices rise. Whether Mr. Roach's vendors and their Chinese suppliers all agree is an open question. But, he said, the latest easing in tariff levels at least makes the discussion possible. 'There's no mitigation you can do at 145 percent,' Mr. Roach said. 'That is a complete deal breaker.'
