SFIA Applauds USTR Decision to Not Hit Vietnam Imports with Additional Tariffs
Washington, DC, July 23, 2021 — The United Stated Trade Representative (USTR) announced Friday that the U.S. will not initiate Section 301 Tariffs of up to 25 percent on Vietnamese imports in response to currency manipulation. A USTR investigation launched in October 2020 found Vietnam intervened in foreign exchange markets using excessive and one-sided policies, and practices that placed an unreasonable burden on U.S. commerce. A subsequent U.S. Department of Treasury investigation did not collaborate the USTR findings and recommended against Section 301 tariffs on Vietnamese imports. SFIA joined other business interests on a July 14 letter to the USTR opposing the use of tariffs in response to Vietnam’s currency issues.
“This is a huge relief for our industry.” Said Tom Cove, President and CEO of the Sports & Fitness Industry Association, “ At a time when almost every one of our member companies is scrambling to address multiple supply chain challenges, it is good news to take cost increases from potential new tariffs off the table. We are grateful to the Administration for listening to our concerns.”
The USTR will now rely on an agreement between the U.S. Department of Treasury and the State Bank of Vietnam to resolve the currency issues. The USTR and Treasury will monitor Vietnam implementation of its commitments under the agreement to ensure compliance and fair valuation. Should Vietnam fail to comply with the agreement, tariffs could be applied to its imports. The Federal Register notice with background on the investigations and plan going forward can be found here.
ABOUT SFIA: The Sports & Fitness Industry Association (SFIA), the #1 source for sport and fitness research, is the leading global trade association of manufacturers, retailers, and marketers in the sports products and fitness industry. SFIA seeks to promote sports and fitness participation, as well as industry vitality through research, thought leadership, public affairs, industry affairs and member services. For more information, please visit www.sfia.org.