US President Joe Biden issued a statement earlier this week (27 July) in support of the US Inflation Reduction Act 2022, but apparel industry experts tell Just Style that the impact on the wider apparel industry will depend on how quickly the bill is passed and how quickly it can bring down inflation.
“Although details of the proposal have yet to be disclosed, important components of the measure would give methods to relieve inflation for American consumers,” says apparel industry consultant Bob Antoshak exclusively to Just Style. “This would be accomplished through a reduction in inflation-inducing government spending and a realignment of taxation that would affect higher-income consumers (who would effectively pay for the drop in government spending).”Dr. Sheng Lu, associate professor of fashion and apparel studies at the University of Delaware, agrees that it is difficult to predict how quickly this bill will be passed in Congress and whether it will be able to reduce inflation quickly enough.
President Biden noted in an official statement, “This package will decrease the deficit beyond the record-setting US$1.7 trillion in deficit reduction we have already achieved this year, which will help battle inflation as well.” “If approved, this measure will be historic,” he said, “and I urge the Senate to proceed on this bill as soon as possible, and the House to follow.” The American Apparel & Footwear Association (AAFA) informed Just Style earlier this month that repealing Section 301 Tariffs would be the best option.