AAFA Weekly Brief
June 26, 2018

Newsletter at-a-glance

Retaliatory tariffs on U.S. products by the EU, in response to the U.S.'s steel and aluminum tariffs, went into effect on Friday — impacting a range of products including select apparel and footwear lines. Learn about this and other trade dispute developments below.
June 26: ... Fifty-one trade groups are joining the U.S. Chamber of Commerce and 222 state and local chambers by signing a letter that was sent to U.S. senators Tuesday in support of a bill introduced this month by Sen. Bob Corker, R-Tenn. The legislation would require Congress to approve or reject any new tariffs the president imposes based on national security concerns. (Source: USA Today)
June 26: ... He tweeted a day after Harley said it will move some production overseas due to increased costs from the EU's retaliatory tariffs against the Trump administration's duties on steel and aluminum. (Source: CNBC)
June 23: ... In remarks on Tuesday, President Trump complained about the high tariffs that Canada imposes on its shoe imports. He said Canadian tariffs are so "massive" that Canadians are having to smuggle them back home by wearing them or "scuffing them up" to make new shoes "look old." What’s old is the practice of putting high tariffs on shoes. (Source: The Hill, op-ed by AAFA's Steve Lamar)
June 22: The European Union (EU) has introduced retaliatory tariffs on US goods as a top official launched a fresh attack on President Donald Trump's trade policy. The duties on €2.8bn (£2.4bn) worth of US goods came into force on Friday. (Source: BBC)
Supply Chain
June 22: The Supreme Court ruled 5-4 Thursday to allow states to collect sales tax from online and out-of-state retailers. (Source: Axios)
June 22: Inquiry will explore the carbon impact, resource use and water footprint of growing throwaway ‘fast fashion’ sector. (Source: The Guardian)
June 21: A Greenpeace study, has revealed the presence of microplastics and per- and polyfluorinated alkylated substances (PFASs) in seawater and snow samples from the Antarctic. (Source: Chemical Watch)
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Brand Protection
June 25: ... Part of the proposed e-commerce law, the latest draft of which was reviewed by China’s parliament last week, would make domestic online retail platform operators jointly accountable with merchants for selling any counterfeit goods online. Online merchants are currently solely liable when caught selling fake products. (Source: South China Morning Post)
June 25: The European Union Intellectual Property Office (EUIPO) and the European Commission are hosting a worldwide competition to evaluate blockchain solutions that may help crack down on intellectual property rights (IPR) violations, like counterfeiting and piracy. (Source: Supply Chain Dive)
June 25: ... The move comes in response to a report by trade lobby Conferscenti in April 2018 which estimates that illegal trade in the tourism sector is a €22 billion industry. ... The counterfeit goods of bags, clothes and shoes, which accounts for €3.3 billion annually alone, according to Italian daily La Stampa, are being specifically targeted. (Source: The Local - Italy)
Naylor Association Solutions
Naylor Association Solutions

Tariffs bring the heat – help react: Last week, President Trump announced yet another threat to global trade — directing the U.S. Trade Representative to identify as much as an additional $400 billion worth of U.S. imports from China to be targeted with a 10% tariff. With near-constant actions that promise overwhelming impacts on U.S. companies, workers, and consumers — AAFA has been on the front lines to elevate the voice of the industry. See our recent press interviews and letters to Congress. Here are four ways for members to get involved today: 

  1. Contact Steve Lamar to share information about how these tariffs, retaliation to these tariffs, or previous tariff actions are affecting your business. Members of Congress are asking for such anecdotes. 
  2. Oppose new tariffs with this pre-drafted letter from our Legislative Action Center. 
  3. Register to join our upcoming member-only webinar on July 11: "Trade War or Friendly Dispute? Managing the Chaos" when you will hear the latest from AAFA's Steve Lamar and Nate Herman. 
  4. Keep up with what's going on with AAFA's Trade War Heat Map (member login required), which lists recent trade actions and the threat level to the apparel and footwear industry. 
AAFA President and CEO Rick Helfenbein sits down with Richard Quest on CNN International’s Quest Means Business on Friday, June 22 as he flagged the risk of the ‘Trump Tax’ and its impacts on consumers and AAFA members (video playback unavailable). 
Footwear fallacies: In a speech on illegal immigration last week, President Trump claimed that Canadians were crossing into the United States to engage in massive shoe smuggling back into Canada. He explained this "smuggling" as an example of the high tariffs Canada charges on U.S. products, and how the North American Free Trade Agreement (NAFTA) was a bad deal for the United States. Contrary to this argument – we welcome more Canadians to purchase our products! Here are two ways to learn more about the real impact on tariffs on your footwear business and how to assist in advocacy efforts that improve the trade environment for your business to thrive:
  1. Join us for the 2018 AAFA Footwear Workshop, September 27 at New Balance in Lawrence, MA.
  2. Take part in AAFA’s Footwear Action Committee — a platform for members to discuss issues unique to the production, sourcing, and selling of shoes. This group is member-led and focuses on three areas: producing footwear-specific products and tools, driving footwear-focused policy, and creating a forum for discussion and feedback on footwear issues. Contact AAFA’s Nate Herman to learn more. 

See all of AAFA’s latest letters, comments, and testimony here.

Congress and government agencies solicit comments on a range of issues that may affect your business – find a list of comment opportunities here.

Member Welcome: Inspectorio

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AAFA Events
July 11 Member-Only Webinar: Trade War or Friendly Dispute? Managing the Chaos 
July 12 Webinar: Mud Pie and the Gift of Growth 
July 18 Webinar: Licensed Product Challenges and Solutions
July 19 Government Relations Committee Lobby Day 
Visit our events calendar for all AAFA webinars and industry events.



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