The escalating trade tensions between the United States and China are already having an impact on fashion and technology markets. US President Donald Trump has implemented tariffs on Chinese goods, prompting retaliatory measures from Beijing.
Trump's recent executive order imposes a 10% tariff on all goods imported from China. This order also eliminates a loophole that allowed companies to import goods from China at lower costs, benefiting companies like Shein and Temu, which have used this loophole to expand their businesses in the US and compete with Amazon.
China has retaliated by placing PVH Corp, the holding company for brands like Calvin Klein and Tommy Hilfiger, on its "unreliable entities" list. The Chinese Ministry of Commerce alleges that PVH has engaged in "discriminatory measures against Chinese companies" and has "harmed" the legitimate rights and interests of Chinese companies.
The Chinese government has also launched an investigation into Alphabet, the parent company of Google, for potential violations of the country's anti-monopoly law. While Google's products, such as its search engine, are blocked in China, the company still works with Chinese partners, such as advertisers.