U.S. apparel exports could decline by 5 percent if fees on Chinese-linked ships entering U.S. ports take effect, the United States Fashion Industry Association (USFIA) warned in comments to the Office of the U.S. Trade Representative (USTR). The group also cited estimates of a potential 4 percent reduction in employment and output across the U.S. fashion and apparel industry.

The USFIA joined the American Apparel and Footwear Association (AAFA) and the National Retail Federation (NRF) in supporting the USTR’s proposal to extend the suspension of the fees for two months. If adopted, the extension would move the deadline to Jan. 9, 2027. The current one-year suspension is due to expire at 11:59 p.m. Eastern time on Nov. 9, and the USTR has not yet issued a final decision.

The proposed charges would apply to Chinese-built and Chinese-operated vessels calling at U.S. ports. The fees were briefly in force last October and November before being postponed for a year. In comments submitted to the USTR, industry groups argued that the charges could increase costs across supply chains, make business planning more difficult and do little in the near term to rebuild U.S. shipbuilding.

The USFIA’s employment and output estimates come from an economic study prepared by Trade Partnership Worldwide in March 2025. The association also cited a Moongate Associates estimate that 70 percent of the value of an imported garment supports U.S.-based jobs in areas including design, sourcing, distribution, retail and services.

USFIA president Julia Hughes said the fees could raise expenses for businesses and consumers, reducing sales and employment in retail and wholesale. She also warned that disrupting Western Hemisphere supply chains could weaken the competitiveness of U.S.-manufactured inputs used in the region’s apparel production.

The AAFA urged the USTR to seek a longer-term resolution and provide clarity promptly so businesses can plan. Its trade and transportation manager, Audrey Clark, said the fees had not shown meaningful progress toward strengthening U.S. shipbuilding. She argued that carriers had shifted some vessels and port calls in response, while apparel, travel goods and footwear businesses faced uncertainty because they rely on long-term shipping contracts, seasonal production schedules and complex transport networks.

The NRF likewise called for a substantially longer suspension or removal of the fees while negotiations with China continue. It said the charges could complicate decisions on demand forecasts, transport capacity, rates and inventory, which are often made months before cargo is shipped to the United States.

The World Shipping Council also called for a permanent pause, arguing that retroactive charges on vessels already built or ordered would penalize earlier business decisions without reducing reliance on Chinese shipbuilding. Hapag-Lloyd’s U.S. subsidiary told the USTR it had met with officials and suggested encouraging cargo to move on U.S.-flagged vessels as an alternative.

Manufacturing and labor groups, including the Alliance for American Manufacturing and the United Steelworkers, opposed suspending the fees. They argued that Chinese government subsidies and other market practices continue to harm the U.S. maritime industry, and said delaying the measures could prolong uncertainty for shipyards, workers, suppliers and investors.

Sources: WWD.