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  EXPLORE FURTHER: Beloved mall staple receives $663M boost… thanks to the parent company of Toys R Us
  
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The era of cheap clothing shopping is rapidly drawing to a close. This decline begins as
The shopping centers in America are already facing difficulties.
.

On yesterday, President Donald Trump declared the initiation of reciprocal tariffs on products brought into the United States.

This policy imposes significant expenses on items produced in numerous countries. Among those most affected are five Asian nations that house extensive manufacturing facilities for well-known American apparel brands, producing inexpensive merchandise; these countries face duties as high as 46 percent.

President Trump has consistently wished for the tariffs to encourage manufacturing employment within the U.S., shifting production away from lower-cost international markets.

For shoppers, these tariffs will cause the prices of Nike Jordan sneakers, Adidas Samba shoes, and Lululemon trousers to surge dramatically. H&M and Zara apparel items will similarly see increased retail tags. As an example, a $50 sweater could experience a hike ranging from $8 to $20. It’s important to note that the additional duties are applied to the expense at which goods are imported rather than directly impacting the end sale price in stores.

All these firms depend on crucial manufacturing centers located in Vietnam, Cambodia, Bangladesh, China, and Indonesia. Goods originating from these five nations have faced significant import duties ranging between 32% and 46%.

In total, this policy is anticipated to generate approximately $26 billion in tariffs from apparel items alone—companies must then determine whether they wish to transfer these costs to customers or cease sales within the U.S. market.

“The tariffs implemented on April 2 appear specifically designed to cripple the apparel sector,” stated Dylan Carden, an analyst at William Blair based in Chicago.

Nike gets about half of its footwear and 30 percent of its clothing from Vietnam, whereas Adidas sources roughly 40 percent of its shoes from the same country.

In contrast, clothing production in the US is negligible.

Approximately 3.5 percent of Lululemon’s products are manufactured in the United States. In contrast, H&M does not operate any production facilities within the U.S.

In the previous year, there were 26,230 full-time sewing machine operators employed in the United States, along with another 1,460 workers holding positions as textile cutting machine operators, as reported by the US Bureau of Labor Statistics.

This number of workers is far from adequate to manufacture clothes for 340 million Americans.

For businesses that were already facing difficulties, the President’s tariffs combined with the absence of clothing manufacturing facilities in America present a lose-lose situation: they must either absorb the additional expenses amid their recent challenges or impose these costs on consumers who are already contending with rising prices.

Prior to the tariff expenses, the United States was experiencing an unprecedented decline in the number of retail stores.

Experts predict
Approximately 15,000 stores are expected to close down this year.
, which exceeds twice the record-breaking 7,000 store closings in 2024.

Multiple fast-fashion retailers, including
Forever 21
,
Billabong, and Quiksilver
has recently filed for bankruptcy and revealed intentions to close down all of their outlets.

For American malls—which have become nearly deserted due to online retail and evolving consumer behavior—investors see tariffs as an additional crippling blow.

The stock prices of clothing retailers have taken a hit following the tariff announcement.

During the early morning trade session, Nike has fallen approximately 12 percent, Lululemon has declined around 13 percent, Crocs is down nearly 17 percent, and Vera Bradley has decreased by roughly 11.5 percent.

These losses also negatively affect American citizens: they signify
substantial declines for numerous 401(k) plans
.

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