"Clothing retailers delay orders, freeze hiring as tariffs hit", 8 April 2025

Clothing and accessories retailers across the United States are delaying orders and freezing hiring ahead of tariff hikes that take effect Wednesday on products imported from Vietnam and China.

These businesses, much like Nike and Lululemon, face an impossible choice: offset the cost of tariffs by raising prices by some 40% - potentially cratering sales - or absorb the cost increase and further strain already-thin profit margins.

Unlike their bigger rivals, however, the smaller clothing and shoemakers lack vast supply chains, making them highly dependent on Vietnam and China.

Ian Rosenberger, CEO of Day Owl...has paused future orders. Unless there's a deal to significantly lower Vietnamese tariffs, Rosenberger estimates Day Owl has 30 days before it folds...

Rosenberger said tariffs would increase his duty to $22 from from $5, prompting him to increase the price of his top-end bag to $212 from from $155.

Footwear Distributors and Retailers of America...calculated that a $155 running shoe made in Vietnam would have to be marked up to $220 in U.S. stores to offset the 46% tariff...

Vietnam has asked for a 45-day delay in the imposition of U.S. tariffs, and said it would buy more American goods, after Trump and Vietnamese leader To Lam agreed...to discuss a deal to remove the levies...

Small businesses, such as...Oiselle, have less capacity to absorb the cost, and fewer resources to plan alternatives.

Arielle Knutson, CEO of Oiselle, has asked her 14 full-time employees to work on two or three tariff contingency plans, on top of their usual jobs.

Oiselle, which sources leggings, sports bras and running tops from Vietnam, has delayed spring 2026 orders that would ordinarily be going out now...

Ketchum, Idaho-based outerwear brand Wild Rye sources ski jackets and mountain biking pants from suppliers in China...

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%.

Day Owl, Oiselle, and Wild Rye said they had previously tried to produce domestically but quality was poor, so moving production to the U.S. isn't practical.