Japan’s richest man and the founder and CEO of Fast Retailing (OTC:FRCOY), which operates Uniqlo, Tadashi Yanai, warned that the United States could face the steepest costs from the tariffs imposed by President Donald Trump.
Warns The World ‘Could Go Bankrupt’
Speaking at a Uniqlo event in New York City on Monday, Yanai said that he was afraid that the world “could go bankrupt” as a result of the tariffs and trade barriers imposed by the Trump administration, while adding that “America is the one that could suffer the most,” as reported by Reuters.
Fast Retailing, one of the largest apparel companies in Asia, is charting an aggressive expansion plan for Europe and North America.
However, with a majority of its production concentrated in South Asia and Southeast Asia, the company had previously flagged the impact of tariffs on its U.S. operations, and has since announced its intention to raise prices in order to mitigate the impact.
Tariffs Could Expose U.S. Consumers As Paper Tigers
Economist Peter Schiff has been raising similar concerns in recent months, following Trump’s recent 50% tariff on imports from India.
Forecasting impact on the U.S. Dollar, Schiff said, “A dollar crash will impoverish Americans but enrich foreign consumers, particularly the BRICs. The death of the U.S. consumer means the birth of the emerging-market consumer.”
Schiff has repeatedly warned about the impact tariffs have on American consumers. When the EU trade deal was signed over a month ago, he said, “We will pay 15% tariffs to buy most European goods, but 50% tariffs to buy European steel, aluminum, or copper,” adding that “Americans lose again.”
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