US President Donald Trump announced the highest and most comprehensive tariffs in nearly a century, targeting major apparel manufacturing hubs with significant levies. A baseline tariff of 10% is applied to all imported goods, while countries with trade deficits face rates as high as 46% (Vietnam), 49% (Cambodia), and 37% (Bangladesh). China’s tariff rate increases to 54%, including a new 34% duty.
The US Fashion Industry Association expressed disappointment, stating that the tariffs will affect American fashion brands and retailers. Stocks plummeted in after-hours trading, with Lululemon shares dropping over 10%. The new duties are set to raise costs and cause turmoil for countless fashion businesses, impacting the industry’s already slim margins.
Trump argued that the tariffs will open foreign markets, break down trade barriers, and lead to more production at home. However, analysts predict significant challenges ahead, including ripple effects throughout the supply chain and potential price hikes for consumers.
Luxury brands, which rely heavily on US manufacturing, may be particularly vulnerable. Companies like LVMH and Nike face increased costs due to new tariffs. Sports brands, which have diversified their sourcing in recent years, also feel the impact of higher costs. The industry will need to navigate these challenges in the months ahead, as many businesses produce raw materials from overseas.
The US is one of the world’s largest consumers of apparel and footwear, making it a vital market for both domestic and international companies. The tariffs are likely to reverberate throughout fashion’s supply chain, affecting textile makers, farmers, and consumers alike.
Source: https://edition.cnn.com/2025/04/03/style/what-trumps-tariffs-mean-for-fashion-bof/index.html