Uniqlo will leave the U.S. if Trump insists on ‘Made in USA’ products

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Uniqlo will leave the U.S. if Trump insists on ‘Made in USA’ products – Mar. 31, 2017

Treasury Secretary Mnuchin: Tax reform coming 'very soon'

Popular Japanese fashion chain Uniqlo has a message for President Trump: We’ll leave the U.S. if you insist we make all of our clothes in America.

Trump’s main economic message is “Buy American, Hire American.” He campaigned on reviving American manufacturing, especially in the Rust Belt.

 

But Tadashi Yanai, the billionaire head of Fast Retailing Co., which owns Uniqlo, doesn’t like being given an ultimatum by Trump.

“If I was directly told to do so, I will withdraw from the United States,” Yanai told Japanese newspaper The Asahi Shimbun this week when he was asked about Trump’s Made in the U.S.A push.

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.

Related: Trump is pushing ‘Buy American.’ But customers (mostly) don’t care

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


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Source: cnn.com

  • Say it ain’t so

    Good tell ’em. You won’t be forced to sell made in the USA products if it’ll hurt your business. That to begin with shouldn’t be forced, it should be an option. Show them that, in a struggling economy, they need you more than you need them. Stand your ground and if you go it’ll be sad but at least you did what you had to do.

  • John Conduff

    as I said about china companies that make garbage products anyways” good riddance” these are oppurtunities for REAL AMERICAN CITIZENS, to open their own companies and make the quality products americans are used to having”, see for the last 25 years in America this lazy worker ideology of when we brake ” we brake”’ has pretty much showed the rest of the world and companies that USED” to be here”, they didn’t want to be here” why pay premium wages to people that don’t appreciate their jobs because they got them because of playing the race card”, so lets cut the games”, im calling it as I see it” so lets do what americans do best ”, not sell crack either, but make the best products in the world”