Ivanka Trump's company could get hit by President Trump's China tariffs
Many of Ivanka Trump's handbags are made in China and will likely face the new 10 percent tariffs if taxed like other leather bags subject to the new trade penalties.
Goldman Sachs analysts expected the Trump administration would target two-thirds of China's apparel imports, about $24 billion, with the tariffs.
A spokesperson for Ivanka Trump said: “The Ivanka Trump brand is held to the same standards as other companies in their category.”
The $200 billion in China tariffs proposed by President Trump could hit many companies close to home — including the one owned by his daughter.
Many of the handbags made by Ivanka Trump’s clothing and accessories company are made in China and will likely face the new 10 percent tariffs if taxed like other leather bags subject to the new trade penalties, according to the list of targeted products released by the U.S. Trade Representative earlier this week. Leather handbags, like the Ivanka Trump Tribeca Box Satchel bag in dove that retails for $250, for instance, are made in China and are subject to the tax, according to the list.
Ivanka Trump’s company doesn’t disclose or discuss where it’s products are made. But its handbags, shoes and much of its apparel all carry the “Made in China label.”
The company’s practice of sourcing its goods from China stands in stark contrast to President Trump’s calls for “Made in America” and his criticism of companies like Harley Davidson, which have said they plan to produce some products overseas.
Asked for comment on whether the company supported or opposed the tariffs, or what impact the tariffs could have, a spokesperson for Ivanka Trump who asked not to be identified by name said: “The Ivanka Trump brand is held to the same standards as other companies in their category.”
Shoes and most clothing were exempt from the tariffs — except accessories and clothing made from leather, rubber or fur, among some other unusual materials.
Analysts led by Matthew Fassler at Goldman Sachs said they were surprised that shoes and apparel were largely spared from the import tax, according to a research note published Wednesday. They expected the Trump administration would target two-thirds of China's apparel imports, about $24 billion, with the tariffs.
That still may come to pass if the White House imposes another round of penalties and would spell more trouble for the the first daughter's company. A pair of Ivanka Trump heels and ankle boots purchased by CNBC both bore the "Made in China" label, as did a red dress.
Ivanka Trump’s company doesn’t report revenue or other financial data. In government financial-disclosure forms for Ivanka Trump and her husband Jared Kushner, she reported income of at least $5 million from the trust that owns her branded-products company.
She's also laying the groundwork to do more business in China. In May, China awarded Ivanka Trump seven new trademarks for everything from books and snacks to spices and housewares. Ivanka Trump is also hugely popular in the country, with songs and videos about the First Daughter often going viral.
In the U.S., the brand has faced more challenges. It was famously dropped by Nordstrom last year, though it’s available at many other retailers, including Macy’s, Lord & Taylor. The company recently shifted its focus to online sales through its website. Several Ivanka Trump items on display at a Lord & Taylor in New Jersey recently were being discounted by 40 percent.