Uniqlo Founder Warns U.S. Faces Biggest Risk from Global Tariffs

Tadashi Yanai, the billionaire founder of Uniqlo and chief executive of parent company Fast Retailing, has warned that the United States could face the steepest consequences from escalating global trade tariffs. Speaking at a Uniqlo event in New York City, where the brand showcased its LifeWear collection in collaboration with Toray Industries and The Museum of Modern Art, Yanai expressed serious concern about the global economy.

“I’m afraid the world could go bankrupt,” Yanai said through a translator, adding that the U.S. may suffer the most under the current tariff policies. He did not elaborate further, but his comments underline the potential risks for both retailers and consumers in the American market.

Fast Retailing, one of the largest apparel companies in Asia, is actively expanding its footprint in Europe and North America. However, Yanai has been vocal about the negative impact of trade disputes and tariffs imposed by the U.S. administration. In July, the company announced that increased tariffs would significantly affect its American operations starting later this year. To offset the rising costs, Uniqlo revealed plans to raise prices on select products.

The majority of Uniqlo’s clothing sold in the U.S. is manufactured in Southeast and South Asia, regions heavily exposed to tariff-related disruptions. With its global expansion strategy, the company faces mounting pressure to balance affordability with profitability in a challenging trade environment.

Yanai’s warning highlights the delicate state of global commerce as fashion retailers navigate the consequences of protectionist trade policies. For American consumers, the ripple effect could mean higher prices and fewer options, signaling a major test for Uniqlo’s growth strategy in the U.S. market.