cotton fiber that's grown somewhere in the world, often in the united states. the fiber is manufactured into a yarn. the yarn is then knitted into a fabric and the fabric, of course, is manufactured into a sweater. the piece goods cost and the cost of manufacture, which is referred to as cut neg and trim make up the first cost value of that sweater. that's the value that becomes taxed or becomes tariffed. the goods then have to be transported to the united states, and they go from a first cost at the point of manufacture to a landed cost, los angeles, long beach, wherever. >> is that another tariff? >> no, at which point the tariff is imposed and paid or the goods don't come through customs. >> right. >> the importer pays the freight. the importer pays the tariff. the tariff is paid to the u.s. treasury. and now the importer, a retailer or a brand, is faced with the conundrum of a substantial step up in the landed cost of that