Abercrombie & Fitch makes this big change because of Trump's rates

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Abercrombie & Fitch (ANF) CEO Horowitz is not waiting for the Trump government to sign a trade deal with China. To protect the company's profits during the holiday season and up to 2020 against a host of new US tariffs in China, Horowitz has taken aggressive action. "Data-reactid =" 15 "> The President of Abercrombie & Fitch (ANF), Fran Horowitz, does not wait For the Trump Government to conclude a trade agreement with China, Horowitz has taken drastic action to protect the company's profits during the holiday season and up to 2020 against a host of new US tariffs imposed on China.

The CEO of the clothing retailer announces to Yahoo Finance that China will count by the end of 2020 for only about 25% of its products in China. At the end of this year, Abercrombie has purchased about 25% of its products from China. This number is expected to fall below 20% by the end of 2019.

Abercrombie's supply chain expansion work is impressive compared to other sectors in the retail sector, which remain highly dependent on China for a significant portion of their inventories. Abercrombie now supplies in 17 countries. It also manufactures products here in the United States.

"We remain agile," says Horowitz.

New rates are imminent

Admittedly, the entire garment and footwear industry is well prepared before the holidays thanks to Team Trump.

On September 1, customs duties of about 15% will be applied to 300 billion dollars of Chinese imports. Previously, the rate for this tranche was set at 10%. A tariff on the remaining $ 300 billion for consumer products such as clothing, footwear and toys will arrive on December 15. It will be penalized by 15% compared to the 10% previously expected.

The American Apparel & Footwear Association estimates that 77% of US imports of clothing, footwear and home textiles from China are on the list to be priced on September 1st.

For its part, Abercrombie & Fitch estimates that profits this fall will have reached $ 6 million due to the latest wave of tariffs.

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