The Weekend Economists Run For The Roses.

[xchrom]

14. A Little-Noticed Trade War Is Going To Decimate Southern California's Jeans Industry

http://www.businessinsider.com/los-angeles-jeans-industry-hit-by-tariffs-2013-5

Southern California's women's jeans industry is about to get shredded by European import duties.

According to California Apparel News' Deborah Belgum, all women's denim manufactured in the U.S. is subject to a new 38% tariff as of May 1 — a 26-point increase from current levels.

That subsector happens to be concentrated in and around Los Angeles.

Many companies are already making plans to shift production to Mexico, Belgum writes:
Deborah Greaves, the in-house attorney for True Religion, said she had just found out about it and was shocked. “Obviously, it is not good news. It is not something you ever want to hear. We haven’t had an opportunity to assess how it is going to impact our business and what we can do to mitigate it.”


Read more: http://www.businessinsider.com/los-angeles-jeans-industry-hit-by-tariffs-2013-5#ixzz2SJmrk4s5