If President-elect Donald Trump makes good on his promise to impose high tariffs on companies that don’t move production to the U.S., he stands to damage his daughter Ivanka’s clothing and fashion business.
At Saks Off Fifth recently, an Ivanka Trump white polyester and spandex blouse made in Indonesia was marked down to $34.99, from $69. A few racks over, her black and white jacket came from Vietnam, while several blocks away, at Macy’s, her leather bootee manufactured in China sold for more than $100.
At the Trump Tower on Fifth Avenue, a $35 blue cotton cap embroidered with “Trump National Golf Club” was made in Bangladesh. A Trump Tower hoodie from Pakistan set tourists back $50.
Apparantly Donald Trump and Ivanka Trump don’t mind profiting from offshore manufacturing. I guess it was just too expensive to buy American and “Make America Great Again”.
Ivanka is no stranger to promoting her offshore produced products. In July, Ms. Trump wore a dress from her own collection to introduce her father at the Republican National Convention (she also wore her own brand shoes and jewelry). The next day, her company tweeted out a picture of her from the podium with the words “Shop Ivanka’s look from her #RNC speech” and a link to the Macy’s website, where a similar style from the brand was offered. The $138 dress reportedly sold out in a day.
Since being elected, he has continued to rail against global forces, threatening to punish companies with high tariffs if they don’t move production to the United States. Should Mr. Trump make good on such promises, he would take aim at not only his own brand, but his daughter’s as well.
Mr. Trump doesn’t stand to lose much. While his goods are largely manufactured overseas, most of his retail ventures have gone the way of Trump vodka and steaks. And what products can be found — at his hotels and golf courses and on Amazon sold by independent sellers — are the vestiges of a mostly defunct clothing line or sporadic shipments of Trump sweatshirts and hats.
Ivanka Trump’s company, by contrast, is the type of operation that Mr. Trump is squarely aiming for. Her shoes and dresses largely retail for less than $150. Coats cost as much as $400.
Factored into those prices is the cost of materials and production, as well as shipping, tariffs, marketing and advertising expenses. Cheap production overseas means more coin in the coffers of Ms. Trump and the shoe, accessory and clothing makers that are her partners, among them Marc Fisher footwear, the G-III Apparel Group and Mondani. (Ms. Trump’s company, which is privately held, does not disclose its financials.)
Almost all of her goods are made overseas, according to a New York Times review of shipments compiled separately by Panjiva and ImportGenius, two trade databases. ImportGenius tallied 193 shipments for imported goods associated with Ms. Trump for the year through Dec. 5, mostly Chinese-made shoes and handbags. Her dresses and blouses are made in China, Indonesia and Vietnam, according to a review of hundreds of clothing tags and financial documents filed by G-III.
I can just imagine talk around the dinner table when Ivanka and daddy discuss tariffs. I wonder who will win? It’s a question of family or country.