Tariff turmoil under Trump: Leading Hong Kong bra manufacturer perseveres amid 90-day tariff suspension delay
Rewritten Article:
Manufacturers in Hong Kong are feeling the heat as they navigate the choppy waters of the global trade landscape. Responding to the mainland's industrial upgrade and the rising US-China trade tensions, some have shifted production overseas over a decade ago. But the "America First" policy of President Donald Trump, complete with a barrage of tariffs, has turned calm seas into turbulent ones. In this series, The Post shines a spotlight on a global underwear manufacturer that made a strategic early move—only to find itself in the thick of turmoil today.
A mayhem of activity could be seen recently in a complex of Hong Kong-owned factories in Thailand. Over 3,000 workers scrambled around the clock to expedite the stitching and packaging of bras in a desperate attempt to meet the sudden influx of American demand.
Kenneth Wong Kai-chi, managing director of the Top Form Group, had been abruptly awakened numerous times during the night, besieged by urgent requests from US clients eager to have their shipments expedited.
"Suddenly everyone's asking for extra overtime wages, demanding fast-tracked imports from China," Wong lamented to The Post. "Who's going to cover these costs? It's a logistical nightmare!"
A sea of tariffsTop Form, a leading global producer of bras, underpants, and sports underwear for brands like Calvin Klein, Victoria's Secret, Wacoal, Warner's, Hanes, Marie Jo, and PrimaDonna, has found itself amidst a perfect storm of trade disarray.
做什麼бра grasped for solutionsWith the upsurge in demand, Top Form is not only grappling with escalated production costs but also grappling with various questions left unanswered, such as who will pay for the additional overtime wages and who will bear the cost of urgent air freight from China.
Not surprisingly, these predicaments have sent ripples throughout the global production and supply chain of underwear brands. The levy of tariffs has caused manufacturing costs to rise, posing challenges to brands that rely heavily on international supply networks, like Calvin Klein and Victoria's Secret. The trickle-down effect could lead to price escalations for consumers, with the global fashion sector possibly experiencing an 18% increase in overall costs for leather goods and clothing.
To dodge the impact of escalating US tariffs on Chinese imports, some companies are repositioning their production facilities to other countries like Vietnam. This strategic move could become a trend for other brands facing similar challenges.
Another crucial factor influencing the underwear market is the US-China trade tensions, particularly the Chinese imposition of high tariffs on US cotton. While this may not affect all brands equally, it could potentially impact supply and pricing for those with a strong reliance on US cotton.
For regional brands like Hanes, which boast a relatively localized production process, the brunt of the impact might be less severe in terms of overseas relocation. However, they could still feel the pinch in terms of material sourcing and dealing with fluctuations in global market prices.
- Kenneth Wong Kai-chi, managing director of the Top Form Group, is managing a logistical nightmare as the surge in American demand for their bras and sports underwear, produced for brands like Calvin Klein, Victoria's Secret, Wacoal, Warner's, Hanes, Marie Jo, and PrimaDonna, coincides with a sea of tariffs on Chinese imports.
- The additional overtime wages and urgent air freight costs from China, resulting from the tariffs, have left Top Form and other underwear brands in a predicament, forcing them to grapple with questions about who will cover these costs.
- The trickle-down effect of rising manufacturing costs could lead to price escalations for consumers, potentially causing a 18% increase in overall costs for leather goods and clothing in the global fashion sector.
- To dodge the impact of escalating US tariffs, some companies are considering repositioning their production facilities to other countries like Vietnam, a trend that could become commonplace for brands facing similar challenges.
- US-China trade tensions, such as the Chinese imposition of high tariffs on US cotton, could potentially impact the supply and pricing for underwear brands with a strong reliance on US cotton, while regional brands with a localized production process may feel the pinch in terms of material sourcing and global market price fluctuations.
