ADDIS ABABA – The global fashion powerhouse PVH Corp (NYSE): According to Reuters, Ethiopia is closing a manufacturing plant in Ethiopia. The announcement was made Friday by the company, just two weeks after Tigray’s ongoing conflict.

Legesse Tullu, spokesperson for government, stated that closure was a result of unfair sanctions from the U.S. and would adversely impact the poor and women in the country.

PVH owns Calvin Klein and Speedo as well as Tommy Hilfiger. It is also the first withdrawal by a large manufacturer after suspension of duty-free acces. The move is devastating for Ethiopian economies already struggling with high inflation, drought and a long-running war that left thousands homeless.

PVH has sold multiple brands this year. The company stated that it was prompted to plan a transition from the facility to an Ethiopian supply partner.

“The speed and volatility of the escalating situation there made the transition no longer possible, resulting in the difficult decision to close the facility,” PVH said in a statement.

Joe Biden (the United States President) moved that Ethiopia be removed from the African Growth and Opportunity Act of Africa (AGOA), “for gross violations internationally recognized human rights.”

Officials from Ethiopia warned that the suspension could result in the loss of 1,000,000 jobs. This would be disproportionately detrimental to poor women, who make up the bulk of the garment workers.

The federal government and TigrayPeople’s Liberation F (TPLF) clashed last year. TPLF was once the most powerful in national politics, but it now rules Tigray.

Tigray has around 400,000 inhabitants who live in hunger. On Thursday, the U.N. declared that they were unable deliver food for one month.

The U.N. stated that violations by all sides in conflict may constitute war crimes.

In 2017, PVH came to Ethiopia. It arrived in Ethiopia with its fellow peers in 2017.

These hopes are in danger as the AGOA suspension could lead to other manufacturer closures.

PVH could not provide details about the number of workers at the factory or answer questions immediately.

U.S. Commerce Department statistics show that Ethiopia exported $237 Million duty-free last year to the U.S.

PVH declared in its statement that they were still “committed to” their third-party partners in Ethiopian manufacturing.