The price of clothing is beginning to rise in the U.S. because of Donald Trump’s tariffs on imported goods, according to the boss of H&M, reports the Guardian

“In the U.S., we are starting to see some competitors increasing prices. Different competitors are acting in different ways. Some more aggressively and some more cautiously,” said Daniel Ervér, the chief executive of the Sweden-based company, one of the world’s biggest fashion retailers.

He told the Guardian it was unclear how the market would develop as there was a “fast-moving situation” on tariffs, as the Trump administration had changed the rules on several occasions. Nevertheless, Ervér said, H&M was aiming to be “very, very competitive” on price, fashionability and sustainability.

The group, which owns brands including Cos, & Other Stories and Arket as well as its main chain, said it was likely to have to discount more than last year around the world in the coming months, as some retailers were already having to cut prices to prompt uncertain shoppers to splash out despite global uncertainty, including fears of higher inflation and a recession.

Ervér’s comments came as H&M revealed that sales had risen just 1%, in local currencies, to 112 billion Swedish kroner ($12 billion) in the first half of the year as it closed 4% of its stores. Operating profit slid nearly 17% to 5.9bn Swedish kroner.