Clothing Manufacturers Sue Government Over Tariffs
Did you know that Congress levies different tariffs on men and women’s clothing, sometimes for the same item? Clothing manufacturers have been accepting this for years. However, several manufacturers have decided to sue.
Uncle Sam slaps a 28 percent tax on men’s bathing suits but only 12 percent on women’s. When it comes to overalls, this is reversed, with the women’s wear taxed higher (14 percent tax on women’s overalls versus 9 percent on men’s).
There’s no rhyme or reason to the difference in tariffs on imports, which penalize men in some cases and women in others. Duty added to the clothing, shoes and swimwear entering our ports has been rubber stamped year after year by Congress, and the cost is passed on to consumers.
While apparel companies have tolerated this inequity for decades, several major apparel makers, including Steve Madden, Asics and Columbia Sportswear, have decided to challenge the tariffs with lawsuits against the government. These challenges have broad implications for the clothing industry.
Columbia Sportswear believes the tariffs are irrational and should be changed. For instance, it imports a rugged hiking boot from China, which is virtually identical for men and women. Yet the tariff on the women’s boot is 10 percent, while the identical boot for men is taxed at 8.5 percent.
However, a statement from a 1960 government study of the United States tariff system might favor Columbia’s legal case. In that study, federal regulators conceded that the economic justification of gender disparities on shoes is questionable. So we’ll see if that helps.
While few in government want to approach the issue, manufacturers have been loath to sue – until now. Lawyers and apparel companies stand to win tens of millions in refunded tariffs — not to mention future profits from lower tariffs, which they hope to secure in a settlement with the government.
On the other hand, the government could decide to eliminate sex differences by raising the lower tariffs instead of reducing the higher ones. We’ll keep you posted.





















