Mark Jaeger/courtesy photo

As a longtime lawyer in the apparel industry, Mark Jaeger has seen firsthand how companies have shifted much of the production process abroad that was once done mostly in the U.S., resulting in a much more complex supply chain.

He joined Jockey International Inc. in 1993 and was promoted to general counsel two years later. In all his years at the job, he said he's never seen anything quite like the current set of circumstances presented by President Donald Trump's talk of imposing additional tariffs on goods from China, which could potentially include duties on clothing and apparel.

In an interview with Corporate Counsel Tuesday, Jaeger shared some of his thoughts about how such tariffs could affect his work and lead to a rise in prices for his customers. He'll be talking about Trump again soon, at a panel discussion titled “Regulatory Updates and Impacts from the First Year of the New Administration” at ALM's SuperConference later this month in Chicago.

Below is part of the conversation Jaeger had with Corporate Counsel about the trade and related topics. It has been edited for length and clarity.

Corporate Counsel: Since you joined Jockey, the company has operated under a few presidents' administrations. What has your experience been since Trump took office?

Mark Jaeger: The changes in trade law have been a challenge, as well as some of the policies by the Trump administration. There is the threat of additional duties on goods imported from China and the threat of a trade war between the U.S. and China if it doesn't get resolved. A lot of companies could be caught in a trade war, whether they're an importer or exporter.

And what would the direct impact be for Jockey?

We source from China and a number of other countries as well. Let's put it this way: China's the No. 1 producer of apparel in the market globally. Substantial tariffs on apparel mean the consumer would be paying more for their clothes.

How does the current threat compare with previous supply chain issues you've witnessed?

To put this in perspective, the current climate presents a significant threat and it is one of the bigger threats to the supply chain I've seen in my career.

Do you think many retailers would consider discontinuing sourcing from China?

If duties were put on apparel products, it will cause disruption and will have unknown consequences.

What other policy issues have you had your eye on at Jockey?

Another important issue is tax law. There's been a lot of activity with tax law reform. In the end, we're happy it was passed. There were concerns leading up to tax reform that could have been an unhappy outcome.

You're referring to the border adjustment tax, which would add a tax on goods imported into the U.S.?

Yes, the border adjustment tax would be a problem for all importers and significantly change accounting rules on short notice. We were pleased when that went away.

There are two decisions before the U.S. Supreme Court right now that could have a significant impact on retailers: South Dakota v. Wayfair and Ohio v. American Express. What significance will these rulings have for Jockey?

I don't think I'll comment on that. But yes, they will have an impact on the industry.

Do you have any advice for other GCs keeping up with the regulatory landscape under the current administration?

This is a good time to stay engaged through direct involvement in trade associations. If you participate in those, that's a good resource for companies, and/or networks that have similar business models.