Uniqlo could pull stores if Trump demands U.S. production

By

Rebecca Taras

Published
Apr 5, 2017

As President Trump dives into his plan to “make America great again” by attempting to boost employment in the United States, he’s ruffling the feathers of foreign clothing companies like Uniqlo that have threatened to shutter their U.S. stores if Trump demands its products be produced in the United States.

While President Trump is not necessarily a fan of the Border Adjustable Tax that is being talked about amongst the Republican Party, he’s definitely in support of boosting stateside manufacturing of all kinds—from cars to clothing.

“(Trump's plan) is not beneficial for U.S. consumers,' said Tadashi Yanai, chairman and president of Fast Retailing, in an interview with the Asahi Shimbun. "Anyone will think that it is an open-and-shut and impossible situation... If (manufacturing within the U.S.) is not a good decision for consumers, it is meaningless to do business in the United States.”

This serious warning from Fast Retailing, the Japanese-based company that has owned the casual wear designer, manufacturer and retailer Uniqlo since 2005—comes on the heels of the recent news swirling around the Trump administration seeking modest changes to NAFTA — a potentially destructive move that could cause U.S. companies to lose business in Mexico and Canada due to  Trump’s “Buy American” plan.

While Yanai plans on expanding the amount of Uniqlo stores in the United States from 50 to 70-90 within a year, this will not be the case if he’s forced to produce Uniqlo’s line of casualwear and accessories for men, women and children in the U.S. because it would be virtually impossible to manufacture the same quality goods at an affordable cost.