Latest Moody report says, tariffs on Chinese imports will negatively impact clothing and footwear retail in the American market between the next twelve and eighteen months. The report predicts sales to decline by 5 per cent between the next twelve and eighteen months.

Sales will be affected by risks such as commercial friction and Brexit as pressure within the sector will increase. Last September, United States imposed a 15 per cent tariff on most of China’s clothing imports and plans to apply another tax on December 15. The strengthening of the dollar will also affect the sector, since it will result in increase in costs.

The figures by National Retail Federation reveal that sales of clothing and clothing accessory declined by 2.6 per cent year-over-year in the US. However, these sales increased by 1 per cent in March seasonally adjusted from February and up 0.8 per cent unadjusted year-over-year.