From the wash, to the fit, to the fabric from Italy, every element goes into the cost of making the jeans and their price for the buyer. And one more element makes jeans costly.
“We produce them in Los Angeles. So, as you can imagine it’s not cheap to produce.”
Mr. Kim says Europeans buy these jeans mainly for the “Made in the USA” label. But, he says that label may go away for some kinds of jeans. The EU’s new 28 percent tariff on American jeans is not the only tax on the product. There is also an existing 12 percent tax. Those high taxes may drive manufacturers elsewhere.
Ilse Metchek is with the California Fashion Association. Seventy-five percent of top American jeans come from that state. She says the new tax could send jobs to other countries and affect the local economy.
“The companies will make their jeans in Mexico, in South America.”
Peter Kim also warns of severe results.
“It’s just trying to decimate all of our business out here.”
American manufacturers fear other countries may see this as a great chance to get into the top-level jeans market.
For now, Peter Kim’s Hudson Jeans says it will absorb the costs of the new tax. The company says it will not make buyers pay more for their jeans and will stay in Los Angeles.
But Hudson Jeans and other manufacturers in the United States hope that American and EU officials will find a way to avoid the new tax in coming trade talks.
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2013-11-25
2013-11-25
2013-11-25
2013-11-25
2013-11-25
2013-11-25