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Global : Trade wars and the textile industry - Textile News Global

Courtesy: Julius Silver from Pexels As per the full list of retaliatory tariffs released by Canada’s department of finance, targeted consumer products include pillows, cushions and similar furnishings of cotton; quilts, eiderdowns, comforters and similar articles of textile material containing less than 85 per cent by weight of silk or silk waste; other bedding and similar articles. Canadian countermeasures will remain in place until the United States eliminates trade-restrictive measures against Canadian steel and aluminium products, the department of finance said on its website. Unlike the EU and China, which were quick to retaliate, India took time to respond to imposition of US tariffs on steel and aluminium. It submitted a (revised) list of 30 items to the World Trade Organisation (WTO) on which it proposes to raise customs duties by up to 50 per cent. The duty hike by India would have an equivalent tariff implication for the United States, and would be effective from August 4, 2018, the finance ministry said in a notification. In fiscal 2016-17, India’s exports to the United States totalled $42.21 billion, whereas it imported goods valued at $22.30 billion, thus creating a trade deficit of $19.91 billion for the latter. For the Americans, the outcome of the trade wars would largely depend on two factors—the duration of the trade wars and how entrepreneurs turn the situation to their advantage. As cost of imported goods go up, American products would benefit from comparative price advantage. Cotton, the main raw material for textiles, is locally available in plenty and it is up to the entrepreneurs to make good of it by venturing into production of ‘Made in USA’ garments for the domestic market. The longer the duration, greater would be the scope for US companies to set up textile/apparel manufacturing units, serve the US market and create new employment opportunities in the process.

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