Popular U.S. clothing brands Tommy Hilfiger and Calvin Klein have been blacklisted by China’s government as trade tensions with America

The owner of Calvin Klein and Tommy Hilfger has been placed on China's unreliable entities list, which could force it to cease operations in the region.

Ministry of Commerce has put parent company PVH on its Unreliable Entity List for violation of market principles.

Wells Fargo lowered its rating on Monday to PVH Corp. ( NYSE: PVH) to Equal Weight from Overweight. The firm said the rating cut reflects the more balanced risk vs. reward story with the apparel stock.

Calvin Klein and Tommy Hilfiger are caught in the middle of a budding US-China trade war. China’s Ministry of Finance placed PVH, the parent company of the two American clothing brands, on its “unreliable entities list,

Tommy Hilfiger and Calvin Klein have been caught in the crossfire of a trade war between the United States and China.

China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars imported from the U.S. The tariffs would take effect next Monday.