AAFA, FDRA and NRF welcome US-China tariff pause, call for long-term deal

US apparel and footwear trade associations have welcomed the US and China’s 90-day pause on heightened tariffs. Yet, while the temporary agreement has somewhat calmed the waters of the two regions’ trade war, organisations are still calling for a long-term deal that will mitigate rising costs and prices.

This was reflected in a statement from president and CEO of the American Apparel & Footwear Association (AAFA), Steve Lamar, who said that while the 90-day pause was welcome and “may temporarily help unstick the effective trade embargo that has been in place … since April 9”, there was the possibility of costs and prices only further increasing due to tariff-induced shipping disruptions.

“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,” Lamar added.

‘We’re not across the finish line yet…’

A similar sentiment was shared by Matt Priest, the president and CEO of the Footwear Distributors and Retailers of America (FDRA), who said that the progression of de-escalation was encouraging, but “we’re not across the finish line yet”. Priest noted that some shoes still face “unacceptable” duties approaching 100 percent, before urging the Trump Administration to “ease the burden on Americans further”.

This call was echoed by National Retail Federation (NRF) president and CEO, Matthew Shay, who said the temporary pause is a “critical first step to provide some short-term relief for retailers and other businesses”, laying the foundation for "substantial progress in achieving truly fair and balanced trade relationships with both China and our other trade partners around the world”.

Shay added: “We urge the administration and our Chinese trade partners to continue discussions to address the ongoing issues, work to remove the remaining national security tariffs, and provide long-term stability between the two largest global economies.”

The pause particularly pertains to the 125 percent reciprocal and retaliatory tariffs that had been in place following US president Donald Trump’s ‘Liberation Day’ tariff hikes. While other countries had agreed to enter discussions with the US and therefore welcomed their own respective pauses on such duties, China had initially stood firm in its refusal to negotiate with the US in this regard.

On May 12, however, the US and China announced that they had entered into a trade truce, bringing US tariffs on Chinese imports down to 30 percent. US imports into China, meanwhile, now sit at 10 percent. Delegations from both sides had met in Switzerland for consultations, and had signaled progress in the negotiations.