Trump’s Potential Tariff Targets: India, Brazil, and South Korea at Risk
Donald Trump’s tariffs may target India, Brazil, and South Korea, affecting textile imports. Cotton prices have plummeted due to China’s tariffs, potentially benefiting Indian manufacturers. Additionally, shifts in jewelry sourcing may occur, impacting Indian exports. Retail developments in Latin America continue, with Adidas forecasting sales growth despite volatility. Brand partnerships are forming amid these challenges.
Donald Trump’s tumultuous tariff policies may soon extend to India, Brazil, and South Korea, as highlighted in his recent Congressional address, where he suggested implementing reciprocal tariffs effective April 2. Notably, the United States imports textiles worth approximately $12.4 billion from India and $1.6 billion from South Korea, while Brazil contributes a smaller sum of $119 million. The potential tariffs are anticipated to significantly impact suppliers and manufacturers in these nations, along with US retailers and consumers.
In a related development, cotton prices have dropped to their lowest levels in four years, falling 3.5 percent after China imposed a 15 percent retaliatory tariff on US cotton. This situation may inadvertently benefit Indian manufacturers, as a representation from the Cotton Textile Export Promotion Council indicated that reduced US cotton prices could make imports from the US more viable for India.
Should Trump implement the proposed tariffs on Indian goods, it may adversely affect the export of jewelry to the US. According to Adil Kotwal, president of the SEEPZ Gems & Jewellery Manufacturers’ Association, US buyers may begin sourcing from countries such as France or Italy, where tariffs are lower or nonexistent due to trade agreements.
Meanwhile, Grupo David, a Panama-based retailer, has recently expanded to 300 stores across Latin America, representing brands like Tommy Hilfiger and Adidas. Operations Director Gerardo Marcano revealed aspirations for a 25 percent turnover increase this year.
Adidas forecasts a sales growth exceeding 10% in Greater China by 2025 despite a slightly lower operating profit expectation due to tariff-induced volatility. In Q4, the brand experienced notable sales growth in North America and Greater China, with increases of 15% and 16%, respectively.
Grupo Falabella, a prominent Chilean retail conglomerate, reported a 13.5 percent revenue increase in Q4 of 2024, reaching $3.5 billion, attributed to steady year-long performance. In contrast, Chilean retail giant Cencosud noted a 20 percent decline in net income, despite a significant revenue increase amid economic fluctuations.
In other news, Levi’s has appointed Indian musician Diljit Dosanjh as its global ambassador, while Versace has signed Chinese actor Hou Minghao for a similar role. Additionally, India’s Priyanka Gill has launched a lab-grown diamond brand, Coluxe, backed by early-stage funding from personal investors.
In summary, Donald Trump’s tariff policies pose potential challenges for India, Brazil, and South Korea, particularly in the textile and jewelry industries. Falling cotton prices may benefit Indian manufacturers due to Chinese retaliations. On a different note, significant retail developments are underway in Latin America, while brands like Adidas and Grupo Falabella show promising revenue growth. As global fashion dynamics evolve, new brand alliances emerge, showcasing the industry’s resilience amidst tariffs and economic fluctuations.
Original Source: www.businessoffashion.com
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