Retailers are scrambling to shift production to China as the coronavirus pandemic rips through India, forcing clothing manufacturers to shut down or work at half capacity to prevent new infections. However, with tariffs still in place as a result of the trade war, the transfer could result in higher pricing for U.S. customers.
Since February, the number of infections has increased in India, with highly dangerous strains spreading as large crowds congregate for religious holidays and political rallies. With approximately 22 million infections reported, health experts have warned that the worst is yet to come.
“Once India opens back up, things will pivot back because the coustomer can’t be hit,” Brett Rose, CEO of United National coustomer distributor, an international retail wholesale and distribution company, told NBC News. “Now, more than ever, we want to buy new shirts, new pants and new bags. A locked factory doesn’t help that.”
India makes up about 16 percent of textile imports to the U.S. and about 5 percent of garments and accessories, according to examination of U.S. International Trade Commission data by the Peterson Institute for International Economics. While the country constitutes a tiny fraction of imports as compared to China, it still plays a notable role in certain sectors, including raw gems, which makes it difficult to move supply chains outside the country, said a senior fellow at the Peterson Institute and an economics professor at Syracuse University, Mary Lovely.
