U.S. Tariffs on Clothing and Shoes from China, Vietnam Impact Retailers
The U.S. has imposed new tariffs on clothing and footwear imports from China, Vietnam, and Taiwan, significantly affecting major retailers like Gap, Nike, and Levi's. These tariffs, aimed at reducing reliance on foreign manufacturing, have led to increased costs and delayed orders for many companies. According to NBC News, the tariffs are part of a broader strategy to encourage domestic production and address trade imbalances.
Reuters reports that clothing retailers are not only delaying orders but also freezing hiring in response to the financial strain caused by these tariffs. The impact is particularly felt in the sneaker industry, where companies are struggling to maintain profit margins amidst rising costs. AP News highlights that these measures are causing a ripple effect across the retail sector, with many companies reevaluating their supply chain strategies.
Fortune notes that stocks of major retail companies have been affected, with investors showing concern over the long-term implications of these tariffs. As retailers navigate these challenges, the future of the U.S. clothing and footwear market remains uncertain, prompting calls for more flexible trade policies to mitigate the economic fallout.
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What is the new tariff on Vietnam?
For Vietnam, this 46 per cent tariff — among the highest imposed — applies to all goods entering the US, a market that absorbed US$142 billion of Vietnamese exports in 2024, according to US statistics.
Is Nike affected by tariffs?
Along the way, Nike will be forced to contend with tariffs, which were already impacting its results in its fiscal 2025 third quarter (which ended Feb. 28). Tariffs were cited as a reason management lowered its outlook for the current quarter.
Did Vietnam get tariffs?
Vietnam, slapped with 46% tariffs, called for talks with Washington in order to reconsider 'unfair' U.S. duties and Thailand's prime minister said she would pursue negotiations to try to reduce the 37% rate her country faces - far greater than the 11% it had expected.
Are clothing prices going up?
The cost of apparel in the U.S. has increased 3.8% in the past 3 years (Feb 2022 to Feb 2025), according to data from the U.S. Bureau of Labor Statistics. In February, the U.S. Consumer Price Index (CPI) for clothing increased a modest 0.6% month-over-month, following a decline of 1.4% in January.
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