Since months the news of the tariff tussles between the US and China has been doing the rounds and it has also started showing its effects. The first of its victims pick up from the textile sector: the so called 'fast fashion'. It has a large supply dependency of the Chinese giant and would also be the first one to fall.
The commercial frictions seem to be increasing day by day between the US and China which has brought noticeable aftermaths. The 'California Apparel News' reports that the fashion retail segment will be facing the brunt in 2019.
Discretionary consumption is hut hardly by the US-China tariff war, which also impacts fast fashion. The cooling of the economy in 2018 has led to the reduction in consumption and would continue to suffer due to commercial disputes held by two largest economic powers since last summer.
The moderate-priced and low-end products will be seeing inflation in prices if the tussle continues for long. The impact is going to be rapid considering the discretionary expense involved in clothing. The report also talked about the situation getting worse in case of online refunds and purchases which are taking a toll on the industry.
Carelessly implemented tariffs will kill the goose that lays golden eggs for retailers. Clothing business is said to be one of the most profitable ones amongst other segments of production for a country like China but in the current scenario, it has no choice than to settle for a while and hope for better days.
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