A WIDE range of U.S. companies told a hearing in Washington on Monday that they have few alternatives other than China for producing clothing, electronics and other consumer goods as the Trump administration prepares new tariffs on remaining Sino-U.S. trade. The comments came on the first of seven days of testimony on President Donald Trump’s plan to hit another US$300 billion worth of Chinese imports with duties of 25 percent. Sourcing from other countries will raise costs, in many cases more than the 25 percent tariffs, some witnesses told a panel of officials from the U.S. Trade Representative’s office, the Commerce Department, State Department and other federal agencies. Trump and top members of his Cabinet have said that the tariffs, if imposed, would accelerate a move of manufacturing out of China. But dozens of witnesses in oral and written testimony said that moving operations to Vietnam and other countries would not be feasible for years due to a lack of skills and infrastructure in those locations. “That 25 percent is just going to whack us on the head,” said Rick Helfenbein, president of the American Apparel and Footwear Association. “If we could move more product out of China we would, but we haven’t been able to.” Mark Flannery, president of Regalo International, a Minnesota-based maker of baby gates, child booster seats and portable play yards, said that pricing quotes for shifting production to Vietnam — using largely Chinese-made steel — were 50 percent higher than current China costs, while quotes from Mexico were above that.(SD-Agencies) |