The latest and one of the biggest victims in U.S. Presidents recent tariff game is likely to be the U.S. denim companies who are heavily depended on Mexico for denim supply.
According to analysts, President Donald Trump’s surprise pledge to slap new tariffs on Mexican goods could end up hurting retailers the most, who are already reeling under the pressure of the ongoing tit-for-tat trade war between the U.S. and China.
President Trump through his Twitter (TWTR) account on Thursday announced that the U.S. is all set to impose a 5% tariff on all Mexican imports from June 10.
One of the biggest victims of this new Mexican tariffs in the retail industry could be jean makers, the reason being Mexico is the biggest supplier of men’s and boy’s jeans to the U.S. – nearly 35% of imports. Further, the country is overall the eighth-largest supplier of apparel and the seventh-largest supplier of footwear to the U.S. market.
However, the American Apparel & Footwear Association said in a statement that the association is in favor of tariffs compared to a tax on U.S. businesses, saying it would boost prices for jeans, cars and other consumer-facing goods.