Morgan Stanley outlined the potential effects of reciprocal tariffs, which are scheduled to be announced on Wednesday, on a number of industries, including apparel and footwear importers.
In a report released on Monday, analysts believe the USA would impose tariffs on certain European and Asian items, including those from Vietnam, and increase import taxes on Chinese goods by an additional 10 per cent which have the potential to affect the RMG trade.
They expect tariffs on goods imported from Canada and Mexico to eventually be lowered, which might focus on the effects of import levies on a few industries, including the apparel industry, the analysts added.
Importers of clothing and footwear might be the most affected because they can’t raise prices much without lowering demand, according to the researchers.
Given that 34 per cent of shoe imports came from Vietnam last year, possible tariffs on Vietnamese goods could have an effect on the footwear industry, according to Morgan Stanley. According to the analysts, Nike (NKE), Allbirds (BIRD), On Holding (ONON), and Skechers USA (SKX) would face special difficulties as a result of these levies.
According to the experts, global apparel brands such as Academy Sports and Outdoors (ASO), Five Below (FIVE), Warby Parker (WRBY), Wayfair (W), and Dollar Tree (DLTR) may find it more difficult to respond to tariffs. According to the analysts, Levi Strauss (LEVI) and Bath & Body Works (BBWI) seem to be somewhat sheltered in the meantime.
Bharat Tex Special Report 2026 
