It is breathe of relief after escaping from the retail industry Worst situation On Vietnam tariff.
But some officials believe Temporary trade deal chairman Donald Trump Announced Wednesday is still bad for trade and can have a cool effect on consumer expenses.
A CEO of a popular consumer brand said after CNBC, “It is much better where we were on liberation day,” Trump said The tariff on Vietnamese imports from 46% levy proposed on April 2 will be 20%, then was later suspended. The new rate will currently double from 10% duty.
Another executive called The News “Bad”, but agreed that 20% tariffs were originally better than 46% of duty trump, although the proposed rates were unrealistic.
A third executive said, “I think Trump needs ‘positive’ news.” “I think things are going to develop. Let’s see if it is sure.”
Trump announced the announcement of the 90-day suspension of the proposed tariff in April on Wednesday, and ending next week, and as his administration scrambled to attack agreements with dozens of business partners. Nevertheless, he did not say when the deal with Vietnam would be effective, or whether both sides have agreed to tariff rates.
In the months between Trump’s April 2 tariff rollout and his announcement on Wednesday, retail authorities in apparel and footwear industries consider the ability that Vietnam imports could almost face almost tariffs in the form of 55% of duties covered for Chinese imports.
In the last decade, some of the US top retailers, including Difference, American Eagle And NikeAll have reduced their dependence on China to mold themselves from both high tariffs and the geopolitical disturbance of the region.
many Asplanted in VietnamWhere the factory, some Chinese businesses are owned by some Chinese businesses, are known to produce products at the same quality and price as China. He also started construction in other countries of Southeast Asia, such as Cambodia, Bangladesh and Malaysia. Those countries were facing tariffs of 49%, 37% and 24% respectively under Trump’s April Plan, but now 10% are subject to duty.
According to the Industry Trade Group The American Apparel and Footwear Association, Vietnam is now the second largest supplier for footwear, apparel and accessories sold in the US market. This has become an essential part of the footwear supply chain, at another industry business group, US footwear distributors and retailers, at the speed of becoming the largest supplier of shoes for the US in 2025.
If Trump’s proposed 46% tariff had an impact on Vietnam, it would mean that a lot of industry work to leave China would have been for zero. Some companies are relieved that the temporary deal will set the levy at 20% and the announcement agreement is also a sign that Cambodia, Malaysia and Bangladesh Can reach similar structure,
“It is a breath of twenty percent of the relief,” Sonia Lapinsky said, a fellow and managing director who recommends fashion brands. “There is some positivity and some optimism that it is manageable. So at least it’s not to destroy the business, which is very good. However, it has real implications, right?”
Most companies have a lot of equipment to offset the effect of tariffs, such as working with their suppliers to share costs. But to avoid the major hit from your profit margin, many Included Planning to increase prices. It is still not clear how they will affect the increase consumer expenses as it will take time to increase in the supply chain.
Alixpartners made first Pricing model For CNBC, who investigated how the price of Vietnamese-built sweaters and shoes can increase under Trump’s proposed tariff-if retail vendors do not have any cost to suppliers or shopkeepers. At 10% levy, the cost of $ 95 of men’s shoes may increase from $ 7.42 to $ 102.42. With 20% duty in place, the cost increase will be even larger.
Many officials are concerned that any tariff of this magnitude will be bad for hike businesses and consumers. Paul Kosro, CEO of Picnic Time, A Suppliers Like Top Retail Sellers Target, Kohal And Messi’sSaid that if the watches were injured back in April and Trump said that there would be 20% tariff on Vietnamese imports, “no one would be happy.”
“A 46% tariff may be threatened and you can return with 20 and it’s going to make a better sound but … it is more money coming out of consumers’ pockets at the end of the day and they have less money to spend on picnic baskets and coolers and such things,” said Kosaro, who said, who increased its prices between 11% and 14% in the beginning of this year.
“This is not good for the consumer. Finally, it is just increasing prices … I don’t think it’s good news.”
