AAFA Weekly Brief
July 10, 2018

Newsletter at-a-glance

Tariffs on $34 billion worth of U.S. imports from China went into effect on Friday, July 6, and the administration plans to move forward with public hearings regarding tariffs on an additional $16 billion later this month. At the same time, China is responding to each move by adding tariffs to U.S. exports. Learn more about the current situation under Trade and what you can do under AAFA News. To go more in-depth, register for tomorrow's AAFA Member-Only webinar, where we will discuss the trade environment and answer your questions.
July 9: ... But now that Trump is deep into the trade fight he desperately wanted, there’s no clear exit strategy and no explicit plans to negotiate new rules of the road with China, leaving the global trade community and financial markets wracked with uncertainty. (Source: Politico)
July 9: When an iPhone arrives in the U.S., it is recorded as an import at its factory cost, about $240. But China only makes about $8.50 from that phone. (Source: Fast Company)
July 5: President Donald Trump said on Thursday he would consider imposing additional tariffs on $500 billion in Chinese goods, should Beijing retaliate. (Source: CNBC)
Supply Chain
July 10: Thousands of workers in the textile industry downed tools on Monday, worsening labor tension in South Africa that is already reeling under a fresh spate of strikes. The strike commenced at 10 a.m. with thousands of footwear workers joining the strike demanding wage increase, according to the Southern African Clothing & Textile Workers' Union (SACTWU). (Source: Xinhua)
July 9: International online retailers who sell in Australia will have to start collecting Goods and Service Tax (GST) on all products sold to consumers in Australia valued at 1,000 Australian Dollars or less. (Source: Fashion United)
July 7: ... Companies now routinely use artificial intelligence to decide which clothes to stock and what to recommend to customers. And fashion, which has long shed blue-collar jobs in the United States, is in turn a leading example of how artificial intelligence is affecting a range of white-collar work as well. (Source: New York Times)
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Brand Protection
July 9: ... If the Senate approves Kavanaugh, he will join a court that already has two intellectual property cases on the docket for the 2018-2019 term—a copyright case and a patent case. (Source: Bloomberg BNA)
July 9: ... The products – China-made garments and accessories that would have been worth more than $42.9 million had the products been authentic – were in the process of being "clandestinely smuggled into Mexico," according to an ICE representative, in the second of two similar busts by the U.S. government in the past three months. (Source: The Fashion Law)
July 5: ... Aside from the risks posed by the counterfeit goods themselves, which are often poor quality and could pose a fire risk for example, the sites themselves can be unsafe and leave purchasers exposed to viruses, malware and identity theft ... (Source: Securing Industry)
Naylor Association Solutions
Naylor Association Solutions

Tariffs in action - our continued opposition: On July 6, the Trump administration’s 25 percent tariff on $34 billion worth of U.S. imports from China came into force. The Chinese government responded with tariffs on $34 billion worth of U.S. exports to China. AAFA continues to speak out on behalf of the industry. In case you missed it, watch AAFA President and CEO Rick Helfenbein on Fox Business - Countdown to the Closing Bell last week, where he shared insights on the U.S.-China trade spat and what it could mean for consumers. As the U.S. considers additional tariffs on imports from China, AAFA asks members to continue to speak out in opposition; take action with our prepared letter in the Legislative Action Center.

Connect with pre-screened factories through East Africa Trade Hub: Last year, AAFA signed an MOU with the East Africa Trade and Investment Hub, a USAID-funded project that boosts trade and investment with - and within - East Africa. The USAID Hub does this by promoting two-way trade with the U.S. through the African Growth and Opportunity Act (AGOA) and its duty-free access to the U.S. market, and by facilitating trade linkages between leading U.S. firms and pre-screened factories in East Africa that have competitive production. The project is organizing customized sourcing missions to visit the factories that best suit each AGOA-eligible product category and today’s market-driven "forward sourcing" trend. For information, reach out to Andres Salidas.

Public hearing regarding California workers' compensation classification: The Workers' Compensation Insurance Rating Bureau of California (WCIRB) has proposed changes to classifications contained in the California Workers’ Compensation Uniform Statistical Reporting Plan –1995 (USRP). The changes would affect California wholesalers – not manufacturers or designers. The proposed changes would be included in a Regulatory Filing submitted to the Insurance Commissioner for review and approval effective January 1, 2019. In response to this Filing, the Insurance Commissioner will conduct a public hearing, scheduled for August 3, 2018.

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: Super Dry

Super Dry is a leading supplier of moisture and mold damage preventative products specifically for shipments in ocean containers.

AAFA Events
July & August
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
August 2 Webinar: Managing Brand Success in an Unpredictable World
August 7 Environmental Committee Meeting
August 8 Traceability Seminar
August 9 Social Responsibility Committee Meeting
Visit our events calendar for all AAFA webinars and industry events.

Managing growth and its challenges, knowing when you need PLM, and more!

Join us for our July 12 webinar with Mud Pie.



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