Laos, already struggling with high inflation and severe labor shortages, faces the risk of job losses and declining market share due to a 40% US tariff set to take effect this Friday, in the absence of a bilateral agreement, experts warn.
Shutterstock
This landlocked Southeast Asian nation of 7.6 million people is among those affected by former President Donald Trump’s trade measures. Countries like the UK, Japan and Vietnam have rushed to finalize trade deals ahead of the deadline.
Although Laos exports relatively little, a small number of factories—mostly located in the capital, Vientiane—supply the American market, accounting for roughly 3% to 6% of the country’s GDP.
However, Laos’ supply chains are closely tied to China, the United States’ main economic rival. According to data from last year, the US has a trade deficit of over $760 million with Laos, prompting Washington to threaten one of the highest tariff surcharges announced by the Trump administration.
“We estimate that around 20,000 workers or more will be affected,” said Xaybandith Rasphone, president of the Lao Garment Industry Association.
“We’re not sure of the exact number yet, but it could easily be higher if companies close down,” added Rasphone, who also serves as vice president of the National Chamber of Commerce and Industry.
Rasphone said that if US customers pull back, 35 to 40 factories may face disruption. “Finding alternative markets takes time, negotiation and a lot of effort. It could take years.”
Like neighboring Cambodia and Vietnam, Laos is a regional base for garment manufacturing, supplying many Western brands, including Dr. Martens.
“A 40% surtax is simply a nail in the coffin for any sector trying to export to the US,” said John F. Somers of Diep Vu Co, a garment manufacturer.
In Vientiane, a local saleswoman who declined to be named said she was “living from day to day.” She added, “For the moment, I still have my business and the factory is running as usual,” though she expressed uncertainty about what the US will ultimately decide.
From photovoltaics to textiles
Production of mattresses, silicone products, and solar panels could also be affected by the tariffs.
The solar sector has expanded rapidly in Laos since 2023, fueled in part by Washington’s earlier 50% tariff on Chinese solar products. But according to Casey Tolzman, president of the Association of American-Laotian Businesses, this solar “boom” may have raised suspicions in Washington.
US trade authorities have increasingly targeted transshipment schemes—where countries repackage goods made in China for export to the US, bypassing tariffs.
A temporary truce, due to expire on August 12, currently sets US tariffs on Chinese products at 30%, while China’s tariffs on American goods remain at 10%.
The Laotian textile sector is also closely watching the developments. Although the European Union—especially Germany—has been the main destination for Laotian textiles, the US has long been among the top five export markets.
In this country of 7.6 million people, the garment industry employs nearly 30,000 workers and represents around 13% of export earnings, excluding natural resources.
“Real question”
“One of the big questions for countries like Cambodia and Laos is: what can they offer that’s attractive enough to the US to secure a deal?” said Tolzman.
“Any deal would probably require Laos to enforce stricter rules on transshipment and product origin, to ensure that Chinese-made goods aren’t simply relabeled as Laotian.”
Tolzman added that Washington may also demand action against cybercrime operations targeting American citizens, or ask for greater market access for US products in Laos.
Both the National Chamber of Commerce and Industry and the Lao American Business Association are reportedly helping Vientiane draft a formal appeal to the US government, requesting the surtax be reduced to previous levels—or capped at 20%.
But Somers warned of a deeper threat, regardless of whether a deal is reached.
Laos is expected to graduate from the UN list of least developed countries in 2026, which would result in the loss of its duty-free access to the European Union.
“We’ll be at a competitive disadvantage; our industry will probably collapse within a few years,” said Somers. “The real issue is the EU’s relationship with Laos, not just what the US does.”
(with AFP)
This article is an automatic translation. Click here to read the original article.
Gant has a new CEO as of this month. The Swedish-but-with-American-roots brand has named Fredrik Malm as its chief executive, effective December 1.
Gant CEO Fredrik Malm
It’s an internal appointment with Malm having joined Gant in 2024 as EVP Commercial, Brand & Product. He succeeds Patrik Söderström, who’d led the company for six years.
Before joining the firm, Malm was CEO of SNS, and had been president Europe & International at Coach, as well as president of sales EMEA at Ralph Lauren, and retail director at ECCO.
Gant has been owned by privately-owned Swiss business MF Brands Group (which also owns Lacoste, Tecnifibre and Aigle) since 2008. And MF’s CEO Thierry Guibert said of Gant’s new leader: “Fredrik has brought valuable and extensive leadership experience from global premium fashion and lifestyle brands.
“I have full confidence in his ability to support Gant in its next phase of development, which will notably involve the continued elevation of the collections and an accelerated retailisation across both physical and digital channels.
“I would also like to deeply thank Patrik Söderström for his commitment alongside us over the past 10 years. He has played a pivotal role in transforming and elevating the brand while delivering strong financial performances over the years.”
Gant has been expanding this year, and in late May it reopened its Regent Street, London flagship. It said the refurbishment of the 6,300 sq m space “represents a key milestone in the brand’s global retail investments in the UK and worldwide”. Söderström said at the time that the reopening “kicks off a global initiative to elevate our retail experience”.
The company has also been focusing on its licenses and in June announced the early renewal of its exclusive licensing deal for the design, manufacture, and global distribution of its eyewear with Marcolin.
Lawyers for Chinese online platform Shein return to a Paris court on Friday for a hearing on the French government’s request to suspend the firm’s website for three months, after childlike sex dolls and banned weapons were discovered on its marketplace.
Customers queue to enter the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l’Hotel de Ville, in Paris, France, November 5, 2025 – REUTERS/Sarah Meyssonnier/File Photo
Shein disabled its marketplace- where third-party sellers list their products- in France on November 5, after authorities found the illegal items for sale, but its main site selling Shein-branded clothing remains accessible. The French state wants the website suspended for a minimum of three months in the country, which it argues is needed for Shein to prove that its contents comply with the law.
It has invoked Article 6.3 of France’s digital economy law, which gives a judge powers to prescribe measures with the aim of preventing or halting harm caused by online content. France has also summoned major internet service providers Bouygues Telecom, Free, Orange, and SFR to the hearing, requesting they block Shein’s website. The court will have to decide whether a suspension is warranted, and whether it is in line with European Union law.
In a statement last week, the Paris prosecutor’s office said a three-month suspension could be deemed “disproportionate” under the case law of the European Court of Human Rights if Shein could prove it has stopped all sales of illegal goods. However, the prosecutor said it “fully backed” the government’s demand that Shein provide evidence of measures taken to end those sales.
France’s move comes amid broader scrutiny of Chinese giants such as Shein and Temu under the EU’s Digital Services Act, reflecting concerns about consumer safety, illegal product sales and unfair competition. Meanwhile in the US, Texas Attorney General Ken Paxton said on Monday he is investigating Shein to determine whether the fast fashion retailer violated state law related to unethical labour practices and the sale of unsafe consumer products.
China’s HongShan Capital Group (HSG) has sent a 2.5 billion euro ($2.91 billion) offer to private equity Permira to buy Italian luxury sneaker maker Golden Goose, with the aim of signing the deal by Christmas, daily la Repubblica reported on Friday.
Golden Goose is known for its luxury sneakers – goldengoose.com
Details still need to be defined but the offer gives the luxury group an enterprise value of 10 times the core profit expected by the end of the year, debt included, the newspaper said. Golden Goose’s revenues totalled 655 million euros in 2024, with an adjusted core profit of 227 million euros.
HSG has asked veteran fashion industry executive Marco Bizzarri to become Golden Goose’s future chairman, la Repubblica said, adding that the Chinese private equity aims to expand Golden Goose’s directly-managed stores, particularly in Asia, and plans to list the group in the medium-term.
Last year the Venice-based company, which sells sneakers for more than 500 euros a pair, shelved plans for an initial public offering on the Milan Bourse, citing market volatility caused by political uncertainty in Europe.
Politics8 years ago