Do you know about ‘pink tariffs’? Women pay $2.5 billion more each year because of them

There has been a lot of talk about tariffs since President Donald Trump unleashed his trade war with pretty much every nation around the globe. For the time being he’s put a pause on what he calls “reciprocal” tariffs after it collapsed the US bond and stock markets. But he seems determined to push forward to “right historical wrongs.”

However, even Trump’s new baseline taxes on goods brought into the country are expected to drive up prices for US consumers and have far reaching economic consequences. But he isn’t responsible for an imbalance in the levies charged on apparel that has been around for years that makes women’s clothes more expensive than men’s in the United States.

Pink tariffs: Even tariffs have gender bias

You may have already heard of the ‘pink tax’, originally used to describe sales taxes on feminine hygiene products but has been expanded to cover the practice of charging women more than men for essentially the same product or service. Pink tariffs work in similar fashion.

Under government textile codes, apparel that is imported, which is nearly all of it nowadays, is classified by gender. And many times the tariffs that are applied are not equal with the rate on women’s clothing being higher even on like products.

The 19th gives the example of a men’s anorak versus a woman’s coat in the same category. While the former has a 8.5% levy, the latter has 14% import tax.

According to research by Edward Gresser, vice president and director for trade and global markets at the Progressive Policy Institute, a left-leaning think tank, on average imported women’s clothing had a 16.7% tariff compared to an average tariff of 13.6% for men’s clothing in 2022 reports CNN.

The gender bias in how tariffs are applied to men’s and women’s clothes “likely costs women at least $2.5 billion per year,” said Gesser in a letter applauding the introduction of The Pink Tariff Study Act, legislation to address gender inequalities in the US trade system.

“Taxing women’s clothes more heavily than directly analogous men’s clothes,” he points out, “appears to be unique in the world.”

“Tariffs are a poor form of taxation”

Tariffs are a regressive form of taxation, the same way sale taxes are, as “they tax hourly-wage families more than wealthy households,” notes Gresser. And compared to most of America’s trading partners, “the U.S. tariff system is far more regressive.”

He gives the example that cheap stainless steel silverware has a higher levy than that made of sterling sliver and the same goes for tariffs on imported polyester versus silk. This means that everyday goods are taxed more than luxury items that are imported. Also, even for products manufactured in the US, cheaper materials that need to be imported are taxed more than more expensive materials.

“Economists have long known that tariffs are a poor form of taxation,” states Gresser.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.

Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.