PVH Corp, the parent company of brands like Calvin Klein and Tommy Hilfiger, saw its stock price plunge 5.29% in pre-market trading on Thursday. This sharp decline comes in the wake of President Trump's announcement of sweeping new tariffs on Asian production hubs, dubbed the 'Liberation Day' tariffs, which are set to significantly impact the apparel and footwear industry.

The new tariff plan imposes a baseline rate of 10% on all U.S. trade partners, with additional tariffs on countries considered to be the worst offenders in trade balance. Key apparel sourcing markets are facing steep tariffs, with China at 34%, Vietnam at 46%, and Cambodia at 49%. These tariffs are broader and higher than expected, creating a challenging environment for companies like PVH Corp that rely heavily on Asian manufacturing.

Analysts are sounding the alarm on apparel stocks in light of these developments. Stifel analyst Jim Duffy noted, "Until visibility improves, we expect investors show very little appetite for investment in our coverage universe." The impact on profitability could be substantial, with companies facing significant challenges in relocating their entrenched supply chains away from affected regions.

The apparel industry's heavy reliance on Asian manufacturing, built over decades to capture low labor costs and government incentives, now leaves companies like PVH Corp particularly vulnerable to these tariffs. As the market grapples with this new reality, investors are likely to remain cautious, potentially leading to further volatility in PVH's stock price and those of its industry peers in the coming days.