By Associated Press
Birmingham, AL – Dry cleaning costs are on the rise because of a trade complaint filed by an Alabama manufacturer that accused the Chinese of unfairly dumping low-cost clothes hangers in the U.S. market.
The Commerce Department sided with M&B Hangers of Leeds, leading to increased tariffs on imported hangers and a rise in retail prices some areas.
The president of M&B Hangers, Milton Magnus, said today the average hanger prices have risen 3 or 4 cents per hanger to a dime each since ruling. Tighter profit margins prompted some cleaners to pass the higher cost to customers.
Magus said low-cost hangers from China have resulted in the shutdown of 16 of 19 U.S. hanger factories in the last six years.
Nora Nealis, executive director of the National Cleaners Association, said in some cases the prices paid by dry cleaners for hangers doubled within 24 hours of the new tariffs being imposed.
(Copyright 2008 by The Associated Press. All Rights Reserved.)