WASHINGTON, March 7 — President Donald Trump’s latest threat to impose tariffs on a range of imports from China risks ensnaring some of the country’s most successful manufacturers that supply US multinationals from Walmart Inc to Nike Inc.

The US is considering taxing imports from shoes and clothing to consumer electronics, putting on the hook companies including Yue Yuen Industrial Holdings Ltd and Li & Fung Ltd that help fuel the almost US$450 billion (RM1.76 trillion) in Chinese goods imported to America annually.

Chinese manufacturers won’t be the only ones impacted in a trade war, as their close relationships as suppliers to American brands will likely create a ripple effect.

Li & Fung, which supplies clothes and toys to retailers, counts Walmart and Macy’s Inc as customers, while Yue Yuen supplies Nike and Under Armour Inc.

Yue Yuen generates about 25 per cent of its sales in the US, while Li & Fung relies on the US for almost two thirds of revenue, according to Bloomberg data. The American Apparel and Footwear Association said that some 98 per cent of shoes and 97 per cent of clothing sold in the US is imported. Most of that manufacturing comes from China.

“Virtually no sector will go unpunished. We’re really concerned about what this would do for the prices that American customers pay every day,” said Hun Quach, vice president for international trade at the Retail Industry Leaders Association in Arlington, Virginia. “Any punitive tariffs on imports will result in dramatically higher prices on everything from clothing, electronics, home goods.”

Companies that have products assembled in China, such as Apple Inc, may also be hurt. It’s also not clear how tariffs might affect a company like Samsonite International SA, which uses Chinese factories to make some of its luggage but is based in Mansfield, Massachusetts.

Chinese manufacturers may be able to mitigate US trade risks, as many have been shifting production to South-east Asia over the last three years, said Bloomberg Intelligence retail analyst Catherine Lim. — Bloomberg