Clothing retailers face delays and hiring freezes due to tariffs

From Yahoo Finance: 2025-04-08 07:23:00

Clothing and accessories retailers in the U.S. are facing tough decisions as tariffs on products from Vietnam and China increase, leading to delays in orders and hiring freezes. Small businesses like Day Owl and Oiselle are particularly vulnerable, with price increases or profit margin strains looming. Larger companies like Nike and Walmart are also affected.

Vietnam, a key manufacturing hub for brands like Nike and Adidas, has requested a 45-day delay in U.S. tariffs and offered to buy more American goods. This comes as businesses like Wild Rye, sourcing products from China, prepare for a 34% tariff increase. The impact is widespread, with Nike shares dropping 14% and smaller businesses facing difficult decisions to absorb costs.

Smaller companies like Day Owl, Oiselle, and Wild Rye have tried domestic production but found quality lacking, making a shift to the U.S. impractical. With tariffs looming and prices set to increase, these businesses must navigate a challenging landscape to avoid significant financial strain. The industry awaits potential resolutions to ease the impact of tariffs.



Read more at Yahoo Finance: Clothing retailers delay orders, freeze hiring as tariffs hit