Uniqlo will leave the U.S. if Trump insists on ‘Made in USA’ products – Mar. 31, 2017
But Tadashi Yanai, the billionaire head of Fast Retailing Co., which owns Uniqlo, doesn’t like being given an ultimatum by Trump.
Uniqlo currently has 51 stores in the U.S. Yanai said the company plans to open at least 20 more stores this year, although it’s watching what Trump and Congress do on trade.
Yanai doesn’t want to see a tax on foreign imports to the U.S . He argues any sort of tariff would raise costs and be bad for shoppers.
“We would not be able to make really good products [in the U.S.] at costs that are beneficial to customers,” Yanai said in the Japanese news report. “It would become meaningless to do business in the U.S.”
Uniqlo was not immediately available for further comment about Yanai’s remarks.
But as CNNMoney has pointed out before, American shoppers claim that they want to buy products made in the U.S. But in reality, they purchase things that are cheaper or perceived as better quality, regardless of where they were made.
Uniqlo is the latest foreign company to warn that there will be consequences from any moves to curb foreign trade.
And some experts worry that if Uniqlo and other companies pull out of America, that could make life even tougher for many struggling shopping malls.
Uniqlo and other fast-fashion chains like Forever 21, Zara and H&M are actually doing reasonably well while many traditional retailers such as Macy’s, Kohl’s and Sears struggle.
“Not only is Uniqlo a major retailer and employer in the U.S., it is also a major tenant of landlords in a landscape of retail distress,” noted Peter Boockvar, chief market analyst at The Lindsey Group in Virginia in his morning note on Friday.
CNNMoney (New York) First published March 31, 2017: 11:08 AM ET