The Golden Age of Koopjeswiker Shopping comes to a halt. The downfall starts when the American shopping centers are already struggling.
Yesterday, President Donald Trump announced the start of mutual rates for goods imported into the US.
The policy attributes enormous costs to products made in dozens of countries. Five Asian countries, where popular American clothing brands trust vast factories to disable cheap goods, are among the most difficult, with rates of up to 46 percent.
President Trump has long hoped that the rates reduce production paths to the US and away from cheap global markets.
For consumers, the rates send the prices of Nike Jordans, Adidas Sambas and Lululemon -Broek that shoots up. H&M and Zara clothing will also have higher sticker prices. A $ 50 sweater goes up between $ 8 and $ 20. Rates are added to the import costs, not to the final price of the store.
The companies all trust important production hubs based in Vietnam, Cambodia, Bangladesh, China and Indonesia. Products from those five countries are all beaten with steep import duties of 32 to 46 percent.
In general, the policy is expected to only produce $ 26 billion in clothing products – companies will have to decide whether they want to pass on those costs to the consumer or stop selling in the US.
President Trump revealed new tariff policy in the White House on 2 April
“The rates of April 2 seem to be built in a targeted manner to bump the clothing industry,” said Dylan Carden, an analyst at William Blair in Chicago.
Nike relies on Vietnam for half of his footwear and 30 percent of his clothing, while Adidas is dependent on the country for almost 40 percent of his shoes.
In the meantime, clothing production in the US is miniscule.
Lululemon produces approximately 3.5 percent of its goods in the US. H&M has no production facility in the US.
Last year, only 26,230 drivers of sewing machine worked full -time in the US. Another 1,460 textile -cutting processors have American jobs, according to the US Bureau or Labor Statistics.
That is hardly enough employees to produce clothing for 340 million American citizens.
For companies that have had everything difficult, the rates of the president and the lack of clothing factories of America create an immediate no-win scenario: pass on the costs despite recent struggles or pass them on to customers who are already fighting inflation.
Before the tariff costs, America already went through a record loss of stores.
President Trump has told the American factory workers that his rates will help protect their jobs
Clothing retailers, already in a difficult place with inflation and massive closures, will have to decide to eat the rates or pass it on to consumers
Experts predict that around 15,000 stores will close this year, which is more than double the record of 2024 that breaks 7,000 store closures.
Multiple fast-fashion retailers, including Forever 21, Billabong and Quiksilver, recently declared bankruptcy and have announced plans to close all their stores.
For the shopping centers of America-Al Spooksteden thanks to e-commerce and changing retail habits, investors rates as another devastating.
Clothing store stock prices have been beaten by the announcement of the rate.
Nike fell around 12 percent in the early morning trade, Lululemon fell around 13 percent, Crocs fell almost 17 percent and Vera Bradley lost around 11.5 percent.
These losses also have a negative influence on American citizens: they represent huge losses for thousands of 401 (K )s.
