The news: Calvin Klein parent PVH Corp could be one of the first casualties of a trade war between the US and China. The country’s Ministry of Commerce added the retailer to its list of “unreliable entities”—effectively blacklisting it—minutes after President Donald Trump’s 10% tariff on China imports came into effect.

What it means: The penalties for being blacklisted are unclear given that previous additions to the list—which until now mostly consisted of defense companies like Lockheed Martin and Raytheon Missiles & Defense—didn’t do business in China.

• In theory, companies placed on the list may be prohibited from selling to or buying from China or investing in the country.
• That could be a devastating blow for PVH, given that China accounted for roughly 6% of its revenues and 16% of its earnings before interest and taxes in 2023, CEO Stefan Larsson said on the company’s Q3 earnings call.