Donald Trump could be forced to impose a hefty tax on his own daughter’s fashion business as part of his pledge to bring back manufacturing jobs to the USA.
The US President-elect has repeatedly promised to revive manufacturing in the country and restore jobs that have been moved overseas. Earlier this week he threatened to introduce a 35 per cent levy on any US firms that shifted operations abroad.
However, it has emerged the clothing line run by Mr Trump’s daughter, Ivanka, manufactures most of its products in China, Vietnam and Indonesia.
In a series of tweets on Sunday, the President-elect said: “Any 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!
“There will be a tax on our soon to be strong border of 35% for these companies wanting to sell their product, cars, A.C. units etc., back across the border.”
The Ivanka Trump Collection has a licensing deal with the G-III Apparel Group, a manufacturer that operates across south-east Asia and which also produces clothes for Calvin Klein and Tommy Hilfiger.
The collection’s website lists a number of items as “Imported”, including a £250 coat and a £245 bag, while reviews on the website include customers expressing surprise that items they received were made in China.
A previous analysis by Robert Lawrence, a Harvard University trade and investment professor, found 628 of the 838 Ivanka Trump products listed on the website were manufactured overseas, including 354 made in China.
A spokeswoman for the Ivanka Trump brand said: “We have consistently expressed that we share industry leaders’ interest in bringing more manufacturing opportunities to the US and are looking forward to being a part of the conversation."
Mr Trump has consistently criticised China, claiming it manipulates its currency in order to secure trade deals and even going as far as accusing the country of inventing global warming as a hoax to damage the US economy.
His clothing line was hit by boycotts from anti-Trump campaigners following her father’s shock election as the next US President earlier this month. Several retailers bowed to pressure to stop stocking her company’s products.
The President-elect’s daughter, who Mr Trump has said will run his businesses while he is President, has also been criticised after suggestions she was using her father’s position to promote the family’s commercial interests.
Ms Trump was present at a meeting between the President-elect and the Japanese President at a time when she was in a the final stages of completing a business deal in Japan. She also reportedly joined conversations with the leaders of Argentina, where the Trump family also has business interests, and Turkey.
Mr Trump’s team have strongly denied that business matters were discussed during the talks.
