German affordable textiles chain, Kik, has halted plans to enter the US due to the threat of higher tariffs. Instead, the company plans to focus on its Europe expansion. Kik aimed to conquer the US by opening its first 10 stores in the Midwest during 2019. The US market offers unlimited growth potential. Now, however, trade policies of President Trump have thwarted plans of the chain that hoped to emulate the success of German grocery retailer Aldi in the US.

Compared to the difficulties felt by other retailers, Kik and fellow discount chains have grown in Germany over the past years. Germany-based company, The Boenen operates more than 3,500 stores in Europe, which all offer a very similar range of low-priced clothing and home textiles, thus enabling the company to obtain low buying prices. Facing possible tariff costs, this strategy might not work in the United States anymore.