Trump's proposed tariff could cost Ivanka's company millions
REUTERS/Gary Cameron
Ivanka Trump's $100 million apparel line is produced primarily in China and Vietnam through a licensing deal with G-III Apparel Group Inc., Bloomberg reported.
The deal allows Ivanka's company to cut costs by outsourcing manufacturing jobs overseas. It's the type of business set-up that President-elect Trump condemned throughout his campaign and continues to rail against.
"[A]ny business that leaves our country for another country, fires its employees, builds a new factory or plant in the other country, and then thinks it will sell its product back into the U.S, without retribution or consequence, is WRONG!" Trump wrote in a series of tweets early Sunday morning.
In his tweets, Trump promised there would soon be a 35% tax on US companies selling products in the US that were manufactured in other countries.
Throughout Trump's campaign, both Ivanka and her father were criticized for the hypocrisy of condemning companies that manufacture products outside the US while their companies reportedly do the same.
Rick Wilking/Reuters
In March, PBS reported that nearly all Trump and Ivanka Trump-branded merchandise was not made in the US. Not one of the 838 Ivanka's products advertised on Trump.com was made exclusively in the US, with 628 labeled as imported and 354 made specifically in China.
Ivanka Trump's brand relies on various licensing contracts, like her deal with G-III.
A tariff on products manufactured outside the country could increase production costs, making it more difficult for Ivanka to sell dresses at retailers like Nordstrom and Macy's without raising prices. Bloomberg reported that by some estimates, the tariff cold as much as double the cost of some retail items.
Ivanka Trump did not respond to Business Insider's request for comment.
The president elect has said he would hand over the Trump Organization to his kids, Donald Jr., Ivanka, and Eric, but he hasn't elaborated on how the new management structure would alleviate concerns about the family's potential conflicts on interest around the world.
Trump said last week he would be "leaving my great business in total in order to fully focus on running the country."
But the ties between the Trump family's business and politics run deep.
Since Election Day, Ivanka has sat in on her father's meetings with world leaders including Japan's prime minister, Shinzo Abe. At the same time, Ivanka's company was putting the finishing touches on a new licensing deal with Japanese apparel company Sanei International, which the company has been working on for the past two years, the New York Times reported. Sanei's largest shareholder is the Development Bank of Japan, which is owned solely by the Japanese government.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market