American denim manufacturers are losing business as a result of President Donald Trump’s trade war, Bloomberg reports.
According to the report, many manufacturers have already moved their factories overseas as they’re hit hard by retaliatory tariffs from the European Union in response to Trump’s tariffs on European imports.
Victor Lytvinenko, the co-founder of the Raleigh Denim Workshop, told Bloomberg that the company has already lost two accounts because of the tariffs. One client in Scotland canceled an order that was worth tens of thousands of dollars.
“We’ve been viewing Europe as a huge market opportunity,” Lytvinenko told the outlet. “It’s a huge bummer because we’ve been growing every year, creating manufacturing jobs and building great products here in North Carolina. This hurts our prospects.”
Scott Morrison, the founder of 3×1, called the retaliatory tariffs a “slap in the face.”
Morrison said his company has been able to avoid the full cost of tariffs by sharing it with a European distributor but admitted he’s “not sure if it’s sustainable for a small business like ours.”