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Here’s The Reason Why Uniqlo May Leave The U.S.

* Uniqlo considering exiting from U.S. due to new manufacturing policy
* President Trump announced plans to tax non-American made goods
* Uniqlo primarily manufactures in Asia

Japanese fashion chain Uniqlo has said it will close its U.S. locations if President Trump carries through with his proposed new U.S. manufacturing policy. The billionaire leader of Uniqlo’s parent company Fast Retailing Co., Tadashi Yanai, told The Asahi Shimbun on Wednesday that if he is told directly to manufacture in the United States, he “will withdraw from the United States.”

In a push to increase manufacturing in the United States, President Trump plans on implementing tariffs on non-American made goods. Yanai has stated that Trump’s border tax plan would ultimately increase costs to U.S. consumers, thereby making it “meaningless to do business in the United States.”

Currently, Uniqlo primarily manufactures in Asia, and has stated a lack of specialized labor as another reason preventing U.S. manufacturing. The company currently operates 51 stores in the States, with plans to open more, as they continue to compete with Zara. They will also aim to improve efficiency of design to delivery, to match Zara’s 13 days.

Uniqlo wouldn’t be the only company affected by tariffs — the auto industry would be significantly affected, and Ford Motors CEO Mark Fields has stated it would, “affect the entire auto sector.”

As CNN Money discovered, although many Americans say they would prefer products made in the U.S., most of them end up purchasing the cheapest or best-quality goods, regardless of origin.