Sourcing Journal Podcast: Tariff Workarounds & Worst-Case Scenarios

Published: June 24, 2019, 9:33 p.m.

b'As we enter the midpoint of the USTR hearings on the proposed Section 301 tariff list, some of the now-familiar questions surrounding tariffs have once again cropped up: What will the tariffs include? When will they go into effect? What kind of fallout should we expect? Is there anything we can do?\\n\\nIn this special podcast, Sourcing Journal founder and president Edward Hertzman talks with AAFA executive VP Stephen Lamar about these pressing uncertainties, as well as the potential implications of President Trump\\u2019s upcoming meeting with China\\u2019s President Xi Jinping and why China could be benefiting from the trade war in more ways than one.\\n\\n\\u201cSmart governments will use trade agreements to do those things that they\\u2019ve been trying to do\\u2014and they perceive they want to do for the long term\\u2014that they haven\\u2019t been able to do because they\\u2019ve got domestic political opposition,\\u201d said Lamar. \\u201cSo the fact that they\\u2019re doing something in conjunction with an international agreement helps give them the cover to actually do these things that might have been difficult to do domestically.\\u201d\\n\\n\\u201cWe all know in the industry that the Chinese government has been subtly, and in some cases not so subtly, trying to encourage the industry\\u2014apparel and footwear and some elements of textiles\\u2014to move out of China. That\\u2019s something that\\u2019s been going on for years now. And so this \\u2026 is just following along with something they\\u2019ve been trying to do for a while now,\\u201d he noted.\\n\\nListen to learn:\\n\\n\\u2022 The worst-case scenario of when apparel could be hit (hint: it\\u2019s earlier than you think)\\n\\u2022 The strategic reason tranche 4 is unlikely to face the full 25 percent tariff all at once\\n\\u2022 Whether tariffs will continue to be used as an enforcement mechanism\\n\\u2022 Whether the holiday season will hang in the balance\\n\\u2022 Which country you should be monitoring in addition to China and Mexico\\n\\u2022 The De Minimis \\u201cloophole\\u201d and why it\\u2019s changing the supply chain\\n\\u2022 Workarounds to mitigate the potential increases\\n\\u2022 What you need to know if you intend to change your Customs classification\\n\\nLearn more about your ad choices. Visit megaphone.fm/adchoices'