Clothing retailers to pump brakes on orders, hiring due to tariffs

President Donald Trump’s tariffs pushed some American clothing and accessory retailers to pump the brakes on orders and hiring. 

Smaller sellers of clothing and shoes without massive supply chains rely on Vietnam and China for products, Reuters reported.

Vietnam and China, both major producers of apparel and footwear, were among the slew of countries that were hit by tariffs that the Trump administration unveiled last week.

Those tariffs included a baseline levy of 10% on imported goods and “individualized reciprocal higher” tariffs on certain nations, according to the White House. While Trump on Wednesday announced a 90-day pause on some tariffs, he is continuing to escalate with China, saying he will hit them with a 125% tariff on imports. 

They came into force not long after that, with Vietnam receiving a 46% levy on its imports into the U.S.

Day Owl CEO Ian Rosenberger told Reuters that his backpack company, which produces its products in Vietnam, has paused future orders. He thinks Day Owl could be at risk of going out of business in 30 days if negotiations between the U.S. and Vietnam don’t result in lower levies. 

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

Day Owl’s import cost would climb by $17 to $22 under the tariffs and force him to hike prices, according to Rosenberger. 

Trump said on TruthSocial late last week that To Lam, general secretary of the Communist Party of Vietnam, told him Vietnam “wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.” on trade. The country subsequently proposed more purchases of American products and a 45-day delay of levies. 

Large companies like Nike, Adidas, Puma and VF Corp use factories around the world, something that affords them some negotiating clout to split tariff costs with supplies. 

Small businesses, such as Seattle-based women’s running brand Oiselle, have less capacity to absorb the costs, and fewer resources to plan alternatives. 

Oiselle CEO Arielle Knutson tasked her workers with devising a few contingency plans and decided to put off spring 2026 orders that would typically be placed at this time, according to Reuters. 

Cassie Abel, founder of outerwear company Wild Rye, which has suppliers in China, told the outlet that the China tariffs were “going to create a huge amount of strain on the business.” 

She has frozen hiring and any raises for her 11 employees, and said the business would have to absorb part of the tariff increase to avoid hiking prices by 40%.

On Wednesday afternoon, Trump announced on TruthSocial that he would immediately up tariffs on China to 125% “based on the lack of respect that China has shown to the World’s Markets.” Levies on the country had been at 104%.

At the same time, the president also said he would implement a 90-day pause and apply a 10% levy during that period on countries that have not retaliated against the U.S. for reciprocal tariffs.

“Conversely, and based on the fact that more than 75 countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed related to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effectively immediately,” Trump said in the post.

TRUMP SAYS HE’S RAISING CHINA TARIFFS FURTHER, PAUSING RECIPROCAL TARIFFS FOR OTHERS

Two administration officials weighed in on Trump’s latest tariff announcement on social media.

Treasury Secretary Scott Bessent said “no one creates leverage for himself like @POTUS.” 

“Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his presidency,” Commerce Secretary Howard Lutnik wrote. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.” 

Trump’s announcement caused major stock indices to surge.

Reuters contributed to this report.