Apparel and footwear manufacturers in the US have been shifting their production mix to factories in other countries like Vietnam, Indonesia and Egypt for much of the past decade, but the push has intensified due to the trade war. The United States has not hit most finished apparel and footwear with punitive tariffs.

It will take years, however, for large manufacturers and retailers to build new supply networks. Many companies have held off raising prices to offset tariffs, in hope that they would go away.

As it becomes clear that the risk of tariffs will linger, more companies are taking steps to mitigate them and accepting trade conflict with China as a new fact of life. Some companies are resorting to the price hikes they have been delaying. Kubota held off raising prices until now in hopes that the costs associated with tariffs – including higher prices for imported parts from China – would be short-lived. Kubota has 10 U.S. factories, with seven in Kansas. Its business has been hammered by retaliatory tariffs on U.S. farmers.