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US recovery under threat due to record supply chain disruptions: AAFA

Sep '21
Pic: Shutterstock
Pic: Shutterstock
Supply chains are witnessing unprecedented disruptions due to factory closures linked to the pandemic, ‘legendary price gouging’ from carriers and freight lines, and huge backlogs at ports, according to Steven Lamar, president and chief executive officer of the American Apparel and Footwear Association (AAFA)., who recently said the US economic recovery is under threat because of this.

“This is already meaning empty store shelves, price increases for your favourite products and frankly people being laid off,” he told CNBC in an interview.

“If I can’t bring my product into the United States, I can’t sell my product. If I can’t sell my product, I can’t get revenue and then I can’t pay for workers so, ultimately, that’s going to result in major headwinds that are already starting, that’s going to really affect the overall US economic recovery and the problem is this is affecting smaller companies first. Smaller companies and consumers, they’re the ones least able to withstand these very very difficult supply chain disruptions that we’re experiencing right now,” he said.

Lamar also urged the US government to explore tools beyond tariffs as trade leverage.

Despite a longstanding belief that tariffs equal leverage, he said, these only serve to cause further disruptions to supply chains. “We are battling a mindset that has long been part of US policy or any trade policy that tariffs equal leverage,” he added.

Fibre2Fashion News Desk (DS)

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