Criticism towards the United States could pose a new obstacle for retailers as they tackle various challenges following the implementation of Trump's tariffs. Bank of America analyst Lorraine Hutchinson highlighted concerns about potential repercussions for companies due to escalating geopolitical tensions, particularly between the US and China.

US brands with high exposure to Chinese sales, such as Nike, Skechers, Tapestry (owner of Coach), and Ralph Lauren, may face adverse effects. President Trump announced a temporary halt on some reciprocal tariffs but maintained a 10% duty overall, with China now subjected to a 145% tariff. Forrester analyst Sucharita Kodali suggested that while consumer resistance in other regions might have minimal impact, China's response to US tariffs is uncertain and could have significant consequences for American companies operating there.

US brands have encountered challenges in China due to fierce local competition and a slowing domestic economy. Nike's sales in Greater China declined by 17% compared to the previous year, reflecting pressures in the region. Despite these difficulties, Nike remains committed to the Chinese market, emphasizing the long-term potential and investments made in the country.

Nike and Skechers experienced impacts in China due to various factors such as inventory adjustments and challenging market conditions. Moving forward, companies need to focus on localized products and innovation to navigate the complexities of the Chinese market. Skechers reported a decline in revenue in China last quarter, attributed to challenges in its international business caused by the situation in China.