Asos and Boohoo to press on with US warehouse closures despite Trump tariffs

Despite the imposition of President Donald Trump's tariffs, Asos has confirmed its plans to proceed with the closure of its distribution centre in Georgia, USA.

The fast-fashion group had announced at the beginning of the year that it would be shutting down its US base as part of a strategy to enhance profitability and streamline operations, as reported by City AM.

Consequently, US customers will now be served from Asos' automated UK fulfilment centre in Barnsley, alongside a "smaller, more flexible local US site."

These plans were formulated prior to Trump introducing a 10 per cent tariff on UK exports to the US last week.

In response to City AM, Asos affirmed that the Atlanta warehouse closure would continue in the second half of the year.

Asos had projected a £10m to £20m boost to pre-tax earnings from 2026 in January, despite anticipating a £190m impairment this year.

Following Trump's tariff announcement, Asos shares fell from 293p to 248p, but have begun to recover modestly today, gaining around two per cent.

Boohoo has also decided not to reverse its US closures, having confirmed in September last year that it would cease supplying US customers from its Pennsylvania distribution centre.

Orders will now be fulfilled from the fast-fashion retailer's automated distribution centre in Sheffield, significantly reducing costs and enabling the firm to market a broader range of products in the US.

Boohoo has confirmed to City AM that it will not reverse its decision.