The National Council of Textile Organizations (NCTO), representing the full spectrum U.S. textiles from fiber through finished sewn products, issued a statement welcoming the Trump administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak, but the organization urged officials to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.
“The president has outlined the need for a broad economic stimulus package that would include various tax incentives to help impacted industries and workers. We support the administration’s efforts to bolster the economy as a response to the coronavirus outbreak, while opposing add-ons to any stimulus package designed to exploit the crisis,” said Kim Glas, NCTO President and CEO.
“Any push by importers and retailers to take advantage of the situation and press for removing China 301 tariffs on finished consumer goods—a penalty imposed by the administration in a separate investigation of China’s illegal intellectual property (IP) abuses—should be rejected immediately,” she said. “Tariff breaks on finished products will only pad the pockets of retailers that have long benefitted from China’s trade abuses, and ultimately will not be passed on to the consumer,” Glas said.
As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on Sept.
1 from 15 percent to 7.5 percent.
