Editor’s note: The original version of this story and headline incorrectly linked the recent tariff tensions in North America to Vuori’s decision to open a new warehouse in the U.S. Instead, it has to do with new rules Mexico implemented to protect Mexico’s apparel industry. We regret the error.
New rules in Mexico designed to protect the country’s apparel industry led to delayed spring shipments for Vuori, one of the hottest brands in the market.
The Encinitas, California-based brand recently told retailers that it will be opening a second distribution center in the United States after the new rule impacted shipment of spring orders from its warehouse south of the border, according to emails SESO has seen from the company.
“In December, Mexico President Claudia Sheinbaum issued a Presidential decree which put a temporary suspension on certifications for companies importing specific goods such as apparel and textiles into Mexico,” Vuori VP of Wholesale Sales Luis Alvarez said in the email to retailers on Jan. 20. “And while this decision was grounded in the effort of protecting Mexico’s best interests, it has also meant that there have been countless businesses caught in the crossfire of the import suspension.
“For us specifically, as our distribution center is based in Tijuana, this has meant headwinds for our DC and ability to receive inventory,” Alvarez wrote.
He went on to say that retailers will receive delayed and disrupted Spring ’25 shipments as a result.
Vuori is one of many companies whose carefully designed supply chains have been thrown into tumult by various trade issues around the world, including the new rules in Mexico impacting certain apparel and textile imports into the country.
There are other trade issues going on, of course. As of Monday, the Trump administration agreed to pause the implementation of 25% tariffs on goods from Mexico and Canada for 30 days, while a 10% tariff increase on goods from China was implemented on Tuesday. Chinese officials said it would respond with a 15% tariff on coal and liquefied natural gas products, and a 10% tariff on crude oil, agricultural machinery and large engine cars imported from the U.S. starting on Feb. 10.
On Jan. 31, Alvarez provided an update: Vuori will be shipping Spring ’25 prebook orders based on its on-hand inventory, which means the orders will likely have low fill rates.
However, the company should be able to ship the remaining spring prebook shipments beginning March 3.
We reached out to Vuori for comment about the situation, including the decision to add a new U.S. warehouse to diversify operations.
“We, like many across our industry, continue to closely monitor the situation in Mexico. With that, we have taken proactive steps to limit potential impact to our business or disruptions in our ability to serve our customers,” the company said in a statement to SESO.
Outdoor and athletic consultant Matt Powell, a senior advisor at BCE Consulting, said the ever-changing supply chain and tariff landscape is making it tough for brands and retailers alike.
“Every brand has a unique situation, there’s not a blanket approach,” he said. “Everyone is trying to figure out what’s going to happen – we had a tariff on Mexico for 18 hours, then we didn’t. We had a tariff on China, and they retaliated with tariffs of their own.
“It’s a very fluid situation, and brands are trying to do the best they can to navigate through all this,” Powell added. “Using tariffs as a threat, as a cudgel, instead of as an economic principal has made the marketplace very, very confusing.”
