Clean Clothes Campaign calls on brands to absorb tariff costs
Campaign group the Clean Clothes Campaign has called on clothing brands to absorb the additional costs added to garments due to US tariff announcements.
Although delayed by three months, the high percentages imposed on US imports from garment producing countries such as Cambodia, Bangladesh, Sri Lanka and Vietnam mean that garment production will be heavily affected by these measures.
It said: “All companies across the garment supply chain should ensure not to repeat the mistakes of the Covid pandemic, when global garment companies’ knee-jerk responses to adversity solely prioritised the company’s profitability and financially devastated millions of workers already employed on poverty wages.
"In many of the countries where high tariffs have been announced, such as Cambodia, Sri Lanka and Bangladesh, workers are already paid on below-subsistence levels and have no savings to fall back on. Any renewed attempt of companies offload costs on workers by lowering prices paid for products, cutting wages, increasing unpaid overtime or endangering jobs by relocating production, will leave workers cutting meals and increasing their debts.”
It added some brands have reportedly started to demand reduced pricing, delayed orders or asked suppliers to shoulder the costs. “Under threat that jobs will be relocating to other countries less affected by the tariffs, cuts on wages and increased working hours are suggested. It is important that workers in garment producing countries stand together in a shared approach to address this issue.
“It is paramount that this time around, workers already surviving on poverty wages are not footing the bill for massively profitable companies and that they have a seat at the table wherever major decisions are made.”
