Clothing retailers delay orders, freezing hiring as rates hit

Retail and accessories retailers throughout the United States are delaying orders and frozen hiring before tariff walks that enter into force on Wednesday in the products imported from Vietnam and China.

These businesses, like NikeOpen a new tab and LululemonOpen a new tabIn front of an impossible option: to compensate for the cost of tariffs by increasing prices by 40%, potentially in crater sales, or absorbing cost increase and greater voltage of gain margins already thin.

However, unlike their biggest rivals, clothing and smaller shoemakers lack vast supply chains, which makes them very dependent on Vietnam and China.

Ian Rosenberger, CEO of Day Owl, a six -year -old New York company that makes backpacks in Vietnam, has stopped future orders. Unless there is an agreement to significantly reduce Vietnamese rates, Rosenberger estimates that the owl of the day has 30 days before it folds.

But with a production cycle of approximately 100 days, waiting for much longer risks to the crucial season of shopping back to school. “The damage is already significant enough to be an existential threat,” he said, adding that his seven employees have been asking if they should prepare to be out of work.

Rosenberger said that tariffs would increase their duty to $ 22 from $ 5, which led him to increase the price of his high -end bag to $ 212 from $ 155.

Footwear and retail distributors of America, whose members include Nike, Walmart, Skechers and Deckers, calculated that a $ 155 runner shoe made in Vietnam would have to be marked up to $ 220 in US stores. Uu. To compensate for the 46%rate.

Vietnam has developed specialized factories that produce everything from high -tech shoes to track suits. It is the second largest source of imported clothing and shoes to the US. UU. After China, and a key manufacturing center for Nike, Adidas and others.

Vietnam has requested a 45 -day delay in the imposition of US tariffs, and said he would buy more American goods, after Trump and the Vietnamese leader agreed on Friday to discuss an agreement to eliminate taxes.

Nike's shares have fallen by 14%since the markets closed on April 2, the day Trump announced tariffs, while Adidas shares lost 16%, Puma's shares have dropped 18%and the owner of North Face face corpOpen a new tab The shares fell 31%.

These large companies work with factories around the world, providing them with some influence to divide tariff costs with suppliers. VF CORP is “well diversified in our supply chain to manage tariffs,” said a spokesman.

Small businesses, such as the Oisselle brand, based in Seattle, Washington, have less capacity to absorb the cost and less resources to plan alternatives.

Arielle Knutson, CEO of Oiselle, has asked its 14 full -time employees to work in two or three tariff contingency plans, in addition to their usual works.

Oiselle, who obtains leggings, sports supports and Vietnam tops, has delayed the orders of spring 2026 that would normally come out now.