What is going to happen is that what is left of European manufacturers in the sector are going to move production and warehouses abroad, and from there they will move to EU only about what they need. They will continue to operate as they used to, the only difference being less business (and less jobs) being done in EU.

cheap clothing is for the vast, vast majority not done in the EU, so this does not matter.

But also, this regulation applies to the company _selling them to customers_, so it's completely irrelevant.