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American blue jean manufacturers say they’re losing business after the European Union imposed a retaliatory tariff on the product earlier this year.

Bloomberg News reported Friday that many denim manufacturers had already shifted their business overseas, and that the 25 percent tariffs on the imports are another blow to the industry.

The article goes on to state the following:

Victor Lytvinenko, who runs Raleigh Denim Workshop with his wife, Sarah Yarborough, told the publication that they have lost two accounts as a result of the tariffs. He said a client in Scotland had cancelled one order that was worth tens of thousands of dollars over the tariffs.

“We’ve been viewing Europe as a huge market opportunity,” Lytvinenko told Bloomberg. “It’s a huge bummer because we’ve been growing every year, creating manufacturing jobs and building great products here in North Carolina. This hurts our prospects.”

Scott Morrison, the founder of denim company 3×1, called the EU tariffs “a slap in the face” for American manufacturers.

He told Bloomberg that the company has avoided covering the full cost of the tariffs by sharing it with a European distributor, but added that he’s “not sure if it’s sustainable for a small business like ours.”

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