Us Clothing Brands Brace For Impact As Tariffs On Asian Textile Suppliers Soar
In this article (11)
The US retail clothing and footwear industries are contending with increased tariff pressure as the government announced levies on numerous countries, including key Asian textile suppliers such as Vietnam and Indonesia. The tariffs are expected to be between 25 and 40 per cent.
Impact Analysis on US Brands
Here’s a look at how these tariffs might affect several key US clothing and footwear companies, based on their manufacturing locations.
Ralph Lauren
Ralph Lauren, which sources most of its goods from overseas, gets approximately 19 per cent from Vietnam and 15 per cent from China. Despite potential disruptions, the company remains confident in the diversified nature of its supply chain.
Nike
Nike imports about 43 per cent of its goods into the US. Its sports footwear production is split between Vietnam (50 per cent), Indonesia (27 per cent), and China (18 per cent). The brand’s sports apparel production is primarily sourced from Vietnam (28 per cent), China (16 per cent), and Cambodia (15 per cent). Nike plans to reassign its production in response to the new tariffs.
Skechers
Skechers sources roughly 40 per cent of its products from both China and Vietnam. The company is shifting its import sources away from China and relocating some of its production bases.
Capri
The majority of Capri’s Michael Kors line is produced in Asia, while Italy is the primary production location for Jimmy Choo. The company has been increasing production in Vietnam, Indonesia, and Cambodia.
Tapestry
Tapestry primarily manufactures in Vietnam, Cambodia, and the Philippines, which combined account for about 70 per cent of its production.
American Eagle
American Eagle primarily sources from Asia and plans to reduce its dependence on China by 2025.
Abercrombie & Fitch
Abercrombie & Fitch’s sourcing is split between Vietnam (35 per cent), Cambodia (22 per cent), India (12 per cent), China (7 per cent), and other locations (25 per cent).
Lululemon
Lululemon’s fabric sourcing is divided between Taiwan (35 per cent), China (28 per cent), and South Korea (11 per cent). Its manufacturing operations are in Vietnam (40 per cent), Cambodia (17 per cent), Sri Lanka (11 per cent), Indonesia (11 per cent), and Bangladesh (7 per cent).
Puma
Puma sources 30 per cent of its goods from China, 26 per cent from Vietnam, 13 per cent from Cambodia, and 12 per cent from Bangladesh.
Questions & Answers
What is the potential tariff exposure for US clothing and footwear companies?
These companies could be exposed to new tariffs ranging from 25 to 40 per cent on imports from numerous countries.
How are companies like Nike and Ralph Lauren responding to these tariffs?
Companies are responding by diversifying their supply chains, relocating production, and reassigning production to manage the impact of the tariffs.
Which countries are major sources for these US companies?
Vietnam, China, Cambodia, Indonesia, and Taiwan are among the major sources for these US companies.