By Jay’Mi Vazquez
Managing Editor
The fashion industry faces both challenges and opportunities with changes to international tariffs.
In 2025, many countries are changing their trade rules and shifts in tariffs can affect everything from production costs to market access.
Fashion brands depend on global supply chains, so these tariff changes will impact things like raw material prices, final product costs and availability of goods in international markets.
One of the biggest effects of tariff changes will be on production costs.
Many fashion brands get raw materials, like cotton, wool, leather and synthetic fibers, from countries where it is cheaper to make them.
For example, India and China are big suppliers of textiles and fabrics and Southeast Asian countries often provide cheap labor to keep prices low. If tariffs on these materials go up, production costs will rise, which could mean higher prices for consumers.
Fashion brands that rely on global supply chains might have to rethink where they get their materials if tariffs change.
For instance, if the U.S. raises tariffs on Chinese goods, fashion companies that use Chinese-made textiles or garments could face much higher costs. These brands might have to absorb these higher costs, which would lower their profits or raise their prices, which could reduce demand.
Tariff changes could also impact trade relationships, affecting the availability of certain materials.
If tariffs make raw materials or finished goods more expensive, companies might look for new sources.
This could lead to new markets, but it could also disrupt existing, low-cost supply chains, like Shein.
Another important impact of tariff changes will be on retail prices.
Fashion brands, which depend on affordable pricing to attract customers, could face problems if they have to raise prices because of higher production costs. Consumers might change their buying habits if clothes and accessories become more expensive.
In times of economic uncertainty or inflation, people may be more careful with their money, which could hurt sales for both luxury and fast fashion brands.
On the other hand, some parts of the fashion industry could benefit from tariff changes.
For example, local manufacturers might gain an advantage if tariffs make imported goods more expensive. This could lead to higher demand for locally made products, especially if consumers start choosing quality or sustainability over price.
Some fashion brands may even decide to bring their production back home or closer to where most of their customers live.
This trend, called reshoring, has already started as companies try to reduce reliance on overseas production, especially in countries with unstable trade relations or rising labor costs.
If tariffs continue to affect costs, reshoring could become more popular, especially in the U.S., where domestic clothing production might increase.
However, reshoring has its challenges, like higher labor costs in developed countries and the need for new facilities, which may not be practical for smaller or local fashion brands.
Tariff changes could also cause big disruptions in global supply chains.
Fashion brands, which often rely on complex and just-in-time supply systems, could face delays or higher costs if trade rules change suddenly.
Stricter customs rules or surprise tariff hikes could slow down shipments of materials or finished goods.
Brands with operations in many countries may need to invest in better logistics or change to more flexible supply models to deal with these challenges.
Finally, tariff changes could affect the push for sustainability and ethical production in the fashion industry.
As trade rules change, brands may face more pressure to be transparent and sustainable in their supply chains. High tariffs could encourage companies to adopt more eco-friendly production methods or even push them toward systems where clothes are reused or repurposed.
Consumers are also increasingly demanding sustainably made products, which may push brands to focus on eco-friendly practices, regardless of tariffs.
The fashion industry could find itself at a crossroads: balancing the higher costs of tariffs with the demand for more ethical production.
