The owner of the fashion brand presented 3 large ways whose Trump prices strike the company

Andrew Chen has reflections on President Donald Trump’s latest rafts.

Chen, the founder of the fashion brand based in New York 3Sixteen, went to Tiktok on Friday and listed three main ways whose prices could have an impact on her brand.

Trump imposed a reference rate at 10% on all imports of all countries on April 2. Some countries have been struck stronger than others – the European Union was 20%affected, Vietnam with 46%and Lesotho with 50%. Trump increased the 20% of China’s 20% rates to 54%.

Chen founded his brand in 2003. He made men’s clothing bases, specialized in Japanese denim. Most 3sixteen jeans cost between $ 300 and $ 400. The brand has two stores – one in New York and another in Los Angeles.

Cost

Chen said the most obvious effect of prices is that costs will increase for 3 Sixteen. The brand imports materials from three regions struck by prices – Japan, India and the European Union, mainly Portugal.

“We are the most concerned about Japan because our whole denim is woven there, then he is brought to the states where we cut them and sewers in denim and jackets,” he said in the video.

Trump slapped Japan with a 24% rate last week. Its Minister of Commerce, Yoji Muto, described the measure as “extremely regrettable” and said that the country would urged the United States to exempt Japan from samples.

Chen said that an increase in fabric costs “wholesale stunts and in terms of retail”. He said that an increase of $ 10 in raw materials could result in an increase of around $ 50 in the cost of the product down.

“When it comes to detail, someone has to pay the cost,” said Chen. He added that the brand could absorb the cost, transmit it to the customer or a combination of the two.

Chen says he now has a denim expedition from Japan that he has always understood how the price.

“It was put on this boat a month ago, but because it disembarks three or four days after the prices take effect, we will have to pay higher prices on this expedition,” said Chen.

Uncertainty

Chen said Trump’s prices mean that he has to deal with an additional uncertainty in his business.

He said he had first known this increased uncertainty when Trump announced 25% of fares on the goods of Canada and Mexico in January, to make them back for certain goods about three days later.

Chen said 3sixteen uses jersey fabric knit in Canada. The fleece he uses is also cut and sewn in Canada.

“There were about a month, or a month and a half ago, where we did not know if we were going to have to face 25%increases,” he said.

Market deterioration abroad

Chen said the third way that Trump’s prices would have an impact on 3 -sixteen was by the potential deterioration of its market abroad.

Chen said retailers outside the United States could think twice before storage on American products, adding that it was also faced with this problem during Trump’s first mandate.

He said that in Trump’s first mandate, trade tensions between the United States and the EU affected his brand.

“This has resulted in many stores that love the brand, having bought it for many years, but needing to reconsider their purchases, maybe not even store the brand squarely because it became too expensive,” said Chen.

Chen’s concerns echo those of the retail industry as a whole. Many large retailers, such as Best Buy, Target and Walmart, said that product price increases are inevitable in the new climate.

In January, Bi spoke with the owners of several small businesses, who spoke of the bracing of higher prices and prices by storing stocks and in advanced orders.

Chen did not respond to a request for comments from Business Insider.