US Clothing Retailers Delay Orders, Freeze Hiring Amid Tariff Hikes

Clothing and accessory retailers in the U.S. are facing significant challenges due to tariff hikes on imports from Vietnam and China, prompting many to delay orders and freeze hiring. Smaller companies, such as Day Owl, are particularly vulnerable, as they lack the extensive supply chains of larger brands like Nike and Lululemon. Day Owl's CEO, Ian Rosenberger, warned that his business could collapse within a month if tariffs significantly increase costs, with his duty rising sharply under the new tariffs. Retailers are caught between raising prices by up to 40% or absorbing costs, both of which could severely harm sales. Vietnam has requested a 45-day delay on U.S. tariffs and proposed buying more American goods as part of ongoing trade discussions. The situation has raised concerns about the long-term viability of U.S. apparel sourcing from these countries amidst such economic pressures.