Calvin Klein and Tommy Hilfiger are finding themselves in the middle of a growing trade dispute between the U.S. and China. China’s Ministry of Finance recently added PVH Corp., the parent company of both brands, to its “unreliable entities list,” which serves as a blacklist for companies. This move is part of broader economic measures taken by the Chinese government in response to President Donald Trump’s 10% tariffs on all Chinese imports.
A Chinese Ministry of Commerce spokesperson claimed that PVH had discriminated against and interfered with Chinese companies, though no specifics were provided. The blacklisting could result in PVH being banned from doing business in China or facing other penalties.
This move is significant because PVH is the first consumer brand to be targeted by the “unreliable entity” list; previously, only U.S. defense companies had been added. PVH has criticized the decision and pledged to work with Chinese authorities to resolve the issue.
The company, like all U.S. retailers, prohibits sourcing goods from China’s Xinjiang province due to concerns over forced labor, particularly involving Uyghur and other Muslim minority groups. The U.S. began banning imports from Xinjiang during President Joe Biden’s administration over human rights concerns. In response, China has criticized PVH’s refusal to source cotton from the region, with Beijing accusing the company of violating market principles by boycotting Xinjiang cotton. China has consistently denied allegations of human rights abuses in Xinjiang, referring to facilities in the region as “vocational training centers.”
Though PVH has a notable presence in China, it is not as large as brands like Nike, so any potential shutdown in China would not have as significant an economic impact. However, restrictions on its business there would still be damaging. In 2023, China represented 6% of PVH’s total revenue and 16% of its profit. Both Calvin Klein and Tommy Hilfiger continue to grow their brand presence in China, which PVH sees as an important market for expansion.