The founder of clothing line Uniqlo has said that his company could shut its US operations completely if Donald Trump insists that firms produce their goods in the US or pay much higher taxes.
Speaking to media in New York this week, Tadashi Yanai, chairman and president of Fast Retailing, the company that owns Uniqlo, said that he would “withdraw from the United States” if import duties were imposed.
"We would not be able to make really good products [in the US] at costs that are beneficial to customers", he said according to Japan’s Asahi Media.
He said that it would be impossible to manufacture quality products at a cost that is affordable for consumers.
“If (manufacturing products in the United States) is not a good decision for consumers, it is meaningless to do business in the United States,” he added.
President Trump has in the past warned that the US will impose a border tax of up to 35 per cent on some goods produced abroad and imported into the US.
In mid-March, Germany’s economy minister said that her country could file a law suit against the US at the World Trade Organization if the taxes are introduced. Duties would be expected to hit Germany particularly hard because of the number of cars the country produces.
Uniqlo was founded in Yamaguchi, Japan, in 1949 as a textiles manufacturer and has since emerged into a global brand, boasting over 1,000 shops worldwide.
It currently operates around 50 shops in the US according to its website.
