Uniqlo Unconcerned About Tariffs, But Isn’t Acting That Way — Panjiva
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Uniqlo Unconcerned About Tariffs, But Isn’t Acting That Way

China 1758 Cons. Discr. - Apparel 214 Tariffs 1169 U.S. 3297

The CFO of Fast Retailing, the owner of the Uniqlo brand, Takeshi Okazaki has indicated that the trade war between China and the U.S. won’t be a major problem as it has a “supply chain that can endure under any circumstances”, Nikkei reports.

The initial two rounds of duties, initiated on July 6 as outlined in Panjiva research of July 2, don’t touch on the textiles, apparel or footwear industries. However, the new round of duties on up to $200 billion of products may do so via the textile materials and luggage sectors.

Uniqlo has taken a prudent approach however. Panjiva data shows its seaborne imports to the U.S. from China have surged 93.4% higher in June, bringing the 2Q total to 61.0% above the year earlier level. With China having accounted for 58.9% of Uniqlo’s imports in the second quarter there is clearly an exposure, even if it isn’t at risk yet.

LACK OF CONCERN ABOUT CHINA A MATTER OF RECORD

Chart segments U.S. seaborne imports associated with Uniqlo by shipment origin.    Source: Panjiva

The company’s supply chain appears robust, however, with alternative suppliers in Vietnam, Japan and Indonesia for its major products. In the past 12 months the leading product lines imported by Uniqlo included cotton t-shirts (14.2% of the total), sweaters (11.1%) and trousers (6.5%).

LACK OF CONCERN ABOUT CHINA A MATTER OF RECORD

Chart segments U.S. seaborne imports associated with Uniqlo by shipment origin and product (HS-6).    Source: Panjiva

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