Retailers respond to Trump Vietnam trade deal
The retail sector takes a comfortable breath after it turns out to avoid the worst scenario in Vietnam tariffs.
However, some executives believe that President Donald Trump’s temporary trade agreement on Wednesday, which he announced that he was still bad for business and that he could have a creepy effect on consumer expenditures.
He told CNBC, a CEO of a popular consumer brand, said that Trump’s tariffs in Vietnam imports would be 20% of the 46% tax proposed on April 2 and were then suspended. The new ratio will be twice the 10% task currently available.
Another manager called the news “bad”, but a 20% tariff acknowledged that Trump was better than the initially imposed 46% task, but the proposed ratio was not realistic.
“I think Trump needs” positive “news.” He said. “I think things will develop. Let’s see if this is certain.”
Trump’s statement on Wednesday, in April, the upright tariffs suggested only days before the 90 -day suspension came, and the management of dozens of trade partners trying to make agreements. Nevertheless, he did not say when the agreement with Vietnam would enter into force or whether both parties accepted the tariff rates.
In the months between Trump’s April 2 tariff presentation and Wednesday, retail managers in clothing and shoe industries were afraid of the potential of Vietnamese imports that could face heights of 55% tasks for Chinese imports for Chinese imports.
In the last decade, some of the best retailers in America, Openness– American Eagle And NikeThey all reduced their confidence in China to protect themselves from both high tariffs and the geopolitical turbulence of the region.
Many of them took refuge in Vietnam, some of them are known to produce products with a similar quality and price with China. They also started production in other countries in Southeast Asia, such as Cambodia, Bangladesh and Malaysia. These countries faced 49%, 37% and 24% tariffs, respectively in accordance with Trump’s April plan, but for now, a 10% mission.
According to the Industry Trade Group The American Clothing and Shoe Association, Vietnam is the second largest supplier for shoes, clothing and accessories sold to the US market. According to another industrial trade group American shoe distributors and retailers, it became an important part of the shoe supply chain with the speed of being the largest shoe supplier of the US in 2025.
If Trump had entered into force of a 46% tariff on Vietnam, the separation of the industry from China would mean that a large part of his efforts would be wasted. Some companies will determine the tax as 20% of the temporary agreement, and an announcement agreement is a sign that Cambodia, Malaysia and Bangladesh can reach similar frameworks.
Sonia Lapinsky, the partner and general manager of Aliixpartners, advised fashion brands, “Twenty percent of the relaxation sigh,” he said. He continued: “There is a little positivity and optimism that this is managed. At least this is not destroying, this is great. But it has real consequences, right?”
Most companies have many vehicles to balance the effect of tariffs such as working with suppliers to share costs. However, to avoid large strokes of profit margins, Nike plans to increase most prices, including. It is still unclear how these walks will affect consumer expenditures, because the increases will take time to drip in the supply chain.
For CNBC, Alixpartners has created pricing models that examine how the price of Vietnam-made sweaters and shoes can rise under Trump’s recommended tariffs-if retailers do not exceed any costs to suppliers or shoppers. In a 10 % tax, the cost of 95 dollars of men’s shoes may rise from $ 7.42 to $ 102.42. With a 20 % task, the cost increase will be even greater.
Many executives are worried that any tariff increase in this size will be bad for businesses and consumers. Paul Cosaro, CEO of Picnic Time, is a supplier like a supplier to the best retailers Aim– Kohl’s And Macy’sIf the hours return to April and Trump said that Vietnam would be a 20% tariff in imports, “Nobody’s happy.”
“You may have a 46% tariff threats and you’ll be back with 20 and will make a better sound, but at the end of the day, consumers have more money than their pockets, and they have less money for picnic baskets and coolers and such things, C Cosaro said.
“It’s not good for the consumer. After all, it’s just increasing prices … I don’t think it’s good news.”
