Fashion, Lifestyle & Parenting Blog

How is the trade war between the US & China affecting Chinese fashion webshops

China is a major manufacturer of goods including clothing products and the USA is one of the major countries they export to. China exports about 15 billion dollars’ worth of footwear and 35 billion dollars’ worth of clothing to the USA. This is estimated to be about 10 percent of the total export of China. Thus, the United States of America is a major market for China and the USA trade war with the China affects both countries, albeit, differently.

Higher prices for consumers
The consumers in the USA that buy the products that are imported from China are going to be a major loser in this trade war. The fact that any product manufactured from China could be taxed including clothing, footwear, and bags, the implication is that they would have to pay for the tariffs along with the normal price of the product. Thus, they would be expected to pay more for the same quality of goods, not because the price of manufacturing or raw materials increased, but just because of the increased tariffs they would have to pay as a result of the trade war. The implication is that they might have to buy cheaper Chinese products, thereby being forced to wear inferior products that they won’t have been wearing if there was no trade war. For those that want to retain the quality of products that they wear, they might have to compromise on the quantity. This implies if they usually ordered products from Zaful worth 1,500 dollars quarterly, they might continue to retain the amount, while the number of products they will get will be a bit lesser. Even those who will be able to maintain both quality and quantity are still not safe as well. Even though they will be able to maintain the quantity and quality of the Chinese fashion products that they use, they would have to fork out more money to buy the products. This would negatively impact on the money they could have used to sort out other expenses or their savings. Thus, from all indications, consumers of Chinese products in the USA will suffer significantly as a result of the US-China trade war.

Lower sales for Chinese webshops
Consumers have the option of not buying only fashion products from China. Many other companies from all over the world make fashion products including local manufacturers. They would want to check with other manufacturers from the USA or other countries if there is any company that would offer them the same quality they are used to for the same price. If they get from any other country other than China, it means the sales by Chinese webshops will reduce. The implication is that Chinese webshops would make lesser sales. This also means the Chinese companies might have to reduce the number of goods they produce and probably lay off some staff along the line. This is considering lesser production would mean the need for lesser staff.