Home / Knowledge / News / Apparel/Garments / China tariffs may lead to 'widespread store closures': UBS

China tariffs may lead to 'widespread store closures': UBS

May '19
China tariffs may lead to
The US-China trade war could cause prices to rise on everything from apparel to toys, but it also could lead to 'widespread' store closures, according to a report by investment bank UBS, which said tariffs on Chinese imports could put $40 billion of sales and 12,000 stores at risk. In April, UBS anticipated 20,710 apparel stores need to close by 2026.

“The market is not realizing how much brick & mortar retail is incrementally struggling and how new 25 per cent tariffs could force widespread store closures,” UBS analyst Jay Sole wrote in the report.

Potential 25 per cent tariffs on Chinese imports could accelerate pressure on these firm’s profit margins to the point where major store closures become a real possibility, the report said.

The Trump Administration earlier this month, increased US tariffs on $200 billion in Chinese imports from 10 per cent to 25 per cent. The president has also threatened to add a 25 per cent tariff on almost all the remaining $325 billion in goods shipped in from China.

Even before, retailers have been struggling this year and have announced more closings in the first 20 weeks of 2019 than all of last year, US media reported citing Coresight Research.

The global market research firm tracked the 5,864 closings in 2018. Coresight has tracked nearly 6,400 closing announcements this year, but in a fresh report estimates 12,000 stores could close by the end of the year.

Retailers say they are closely monitoring the trade situation and how a potential fourth wave of tariffs could impact prices. (DS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 25th Sep 2020

UK finance minister outlines Winter Economy Plan

UK chancellor of the exchequer Rishi Sunak yesterday outlined...

Pic: Shutterstock

Textiles | On 25th Sep 2020

India in process of finalising Mauritius FTA: minister

India is in the process of finalising the proposed free trade...

Pic: Shutterstock

Textiles | On 25th Sep 2020

Indonesia expects economy to shrink by 1.7-0.6% this year

Indonesia recently revised down its 2020 gross domestic product...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Cooperate and collaborate for greater good

Top executives, Textile industry

Top executives
Textile industry

The foremost issue is bridging the skill gap

Textile industry, Head honchos

Textile industry
Head honchos

It is a well-calibrated budget

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Saad Khaled Bari,

Saad Khaled Bari

Benetex Industries is a public ltd company established in year 1992 to...

Priyanka Salot,

Priyanka Salot

The Sleep Company was established to upgrade the sleep quality of every...

Jacques Prigneaux, EDANA

Jacques Prigneaux

EDANA has been the leading global association and voice of the nonwovens...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Aneeth Arora, Péro

Aneeth Arora

The Woolmark Company has partnered with handmade fashion label Péro and...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

September 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search