Uniqlo to Hike Prices as US Tariffs Loom
Fast Retailing, the parent company of Uniqlo, anticipates that rising import tariffs in the United States will significantly affect its business, necessitating price increases by the end of 2025.
Tariffs Force Price Adjustments
According to Finance Director Takeshi Okazaki, Uniqlo’s reliance on production in Southeast and South Asia for its U.S. merchandise means it cannot escape the impact of tariffs imposed under the Trump administration.
Okazaki told Reuters on Friday (11/7/2025) that “It is inevitable that we will be significantly affected starting autumn and winter. It will be difficult to bear all costs. Our approach is to raise prices if possible and not if it is not possible, while ultimately focusing on sustainable business creation that generates a safe profit.”
Financial Outlook Maintained
Despite the challenges, Fast Retailing is maintaining its operating profit forecast of 545 billion yen (approximately Rp 60.43 trillion) for the fiscal year ending in August. This projection accounts for the initially limited tariff impact due to existing inventory in the U.S. market.
Economic Headwinds
Resurgent inflation, coupled with an economic slowdown caused by the tariffs, has dampened consumer spending in the U.S. and other key markets. The latest measures by Trump, with an August 1, 2025 deadline, are expected to affect numerous trading partners. Recent data from the U.S. Census Bureau indicates that consumer spending growth slowed to 0.2% in May 2025, reflecting these economic pressures (U.S. Census Bureau).
Trade Impact on Clothing Exporters
Trump‘s administration is targeting clothing exporters. For example, Sri Lanka will face a 30% tariff starting August 1, 2025. Vietnam, a competitor, will face a lower 20% rate; however, goods re-shipped through Vietnam from a third country will incur a 40% tariff.
Shifting Focus Amidst Sluggish Demand
Uniqlo foresees lower sales and profits in China for the fourth quarter of 2025 due to weak demand for finished clothing. Amidst the economic deceleration in China, the company is eyeing growth opportunities in North America and Europe.
Stock Performance Reflects Concerns
Fast Retailing’s stock experienced a notable decline in the first half of 2025, dropping by approximately 8%, according to LSEG data.