This past week, in my fashion survey class, we have been discussing the relationship between the United States and other countries when it comes to sourcing and merchandising fashion products. Exporting and importing goods is not just the main component of a successful business but it also helps national economies grow and expand. A naturally occurring dilemma is that some countries might be plentiful in one resource but not another; this is where trading comes into play. Economies are able to develop once countries start exporting whatever they are rich in, as well as importing goods they lack. This is not only important for businesses but it is also important for consumers because they can benefit from certain products or components that are not produced locally, but are available to purchase online from a business abroad. Products are able to be sold for cheaper which satisfies the consumer while also promoting the purchasing of products which satisfies the market.
All while the fashion industry is based on clothing, shoes, and accessories, the industry itself is ran as a business like any other industry. We all know from business and economics class, that country relations are directly related to the commerce between the two. In recent events, conflict between China and the US has increased resulting in a trade war. Results of this conflict between China and the US are arguably to blame on the Trump administration for that it imposed $250 billion worth of tariffs on products being imported from China.
The Chinese imports are widely recognized as being crucial for US businesses and consumers. As I looked deeper into this issue I found that US accounts for 17% of China’s textile and apparel exports, while China accounts for nearly 50% of the US. Additionally, 41% of US’s apparel consumption and 72% of America’s footwear consumption are products imported from China. This shows that the US has a much higher dependency on China for imports than they do for the US.
Foreseeable consequences of Trumps’s tariffs include increased prices of products which also means a decrease in the consumption of those products for that they are now more expensive. This decrease in demand will result in businesses having to compensate for the profit loss by offering lower prices, limiting the selection/variety of products, or buying from a vendor that is not based in China which inversely harms China’s economy. This tedious balance of trading between countries directly effects the fashion industry for that the products received are dependent upon the businesses trading in and out of the two countries.
Femme Fatale 