Rick Helfenbein, president and CEO of the American Apparel & Footwear Association (AAFA), said the Trump administration’s recent decision not to further increase tariffs by 5% is “not much relief at all”. Mr Helfenbein was speaking on “Bloomberg Daybreak: Asia”, responding to 11 October’s news that the US would not increase duties on $250 billion worth of Chinese goods from 25% to 30% as previously threatened.

Although Mr Helfenbein said he is “beyond thrilled” that his industry and the oval office are talking, he feels the averted 5% increase is less significant than the 15% tariff already imposed in September. 

Five percent of $250 billion “wouldn’t have rocked the boat anyways”, Mr Helfenbein told Bloomberg. But as of 1 September, 91% of all apparel and 53% of all footwear coming from China were hit with a 15% tariff. “China is really, really, really important to our industry in America. So any tariff — and we already pay tariffs — is a hurt.” 

He told Bloomberg that earnings over the holidays will suffer. Although consumer confidence is good and sales should be up, he said, “you lock 15% off the top, we don’t make any money”.

Mr Helfenbein is also concerned about a separate tariff hike set to kick in 15 December, which could apply a 15% rate to $160 billion worth of Chinese imports.