Apparel and footwear makers could benefit from USA tariffs on China

Central American and Mexican producers of apparel and footwear could benefit from tariffs imposed by the Trump administration on Chinese imports to the United States.

Final tariff rates have not been announced, as importers seek to reduce any potential impact, on the grounds that any new tariffs would mainly affect American consumers, since the United States produces little clothing and footwear.

Guatemala, Honduras and Nicaragua are the main Central American producers of apparel exported to the United States, while Mexico produces both clothing and footwear.

Guatemalan apparel exports to the United States are expected to increase by some 25% over the period 2017-2018, according to Vestex, the country’s biggest industry association, while exports from the rest of the Isthmus have also shown strong growth.

A new tariff on Chinese-sourced apparel and footwear could be as much 35%, according to sources close to the United States Trade Administration.