United States Clothing and Accessories retailers are delaying requests and freezing hiring before tariff increases that will take effect on Wednesday on products imported from Vietnam and China.
These companies, like Nike and Lululemon, face an impossible choice: compensate for the cost of tariffs increasing prices by about 40% – which can cause a drop in sales – or absorb cost increases and further reduce profit margins.
Unlike their larger rivals, however, smaller clothing and shoe manufacturers have no vast supply chains, which makes them highly dependent on Vietnam and China.
Ian Rosenberger, CEO of Day Owl, a six-year-old New York company that manufactures backpacks in Vietnam, suspended future orders. Unless there is an agreement to significantly reduce Vietnamese tariffs, Rosenberger estimates that Day Owl will close the doors in 30 days.
But with a production cycle of about 100 days, expecting much more imposes the risk of losing the crucial season of purchases back to school. “The damage is already significant enough to be an existential threat,” he said, adding that his seven employees have asked whether to prepare to be left out of job.
Rosenberger said the rates would increase his $ 5 to $ 22 tax, which would lead him to increase the price of his latest generation from $ 155 to $ 212.
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Footwear Distributors and Retailers of America – whose members include Nike, Walmart, Skechers and Deckers – estimated that a $ 155 -made Vietnam racing shoes would have to be rescheduled to $ 220 in US stores to compensate for 46%fare.
Vietnam Vital
Vietnam has developed specialized factories that produce everything from high -tech running shoes to running clothes. It is the second largest source of imported clothing and footwear for the US, after China, and an important NIKE, Adidas and others manufacturing center.
Vietnam requested an extension of 45 days on the imposition of US tariffs and said it would buy more American products after Trump and leader Vietnamese to Lam agreed on Friday to discuss an agreement to remove fees.
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Nike shares fell 14% since the closing of markets on April 2, the day Trump announced the tariffs, while Adidas shares lost 16%, Puma’s shares fell 18% and North Face owner VF CORP shares fell 31%.
These large companies work with factories around the world, which gives them some negotiation power to share tariff costs with suppliers. VF Corp is “very diverse in our supply chain to manage tariffs,” said a spokesman.
Small companies, such as Oiselle, Seattle -based women’s running brand, Washington, have less ability to absorb the cost and less resources to plan alternatives.
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Oiselle’s CEO Arielle Knutson asked her 14 full -time employees to work on two or three tariff contingency plans, in parallel to her usual functions.
Oiselle, which acquires leggings, sports bras, and Vietnam race tops, delayed the 2026 spring requests that would normally come out now.
Orders the right amount of products – and not having a lot of money stopped in stock – is critical. “It’s an almost impossible needle to stick,” said Knutson.
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The Wild Rye branded brand, headquartered in ketchum, Idaho, acquires skiing jackets and china supplier mountain bike pants, which will be subject to an additional 34% rate from Wednesday.
“This will create huge pressure on business,” said founder Cassie Abel. She froze and any increases for her 11 employees and said the company would have to absorb part of the rate increase to avoid a 40% increase in prices.
Day Owl, Oiselle and Wild Rye said they had already tried to produce in the domestic market, but the quality was poor, so that transferring production to the US is not practical.
