Fashion Under Pressure: The Impact of Trump’s Tariffs

How fashion and beauty are preparing for triple-threat tariffs.
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President Donald Trump signed executive orders imposing tariffs on China, Mexico and Canada, the US’s largest trade partners, under the International Emergency Economic Powers Act (IEEPA). To go into effect on 4 February, the tariffs will impact a third of all goods shipped into the US - including clothing, footwear and beauty products.
Trump has framed the 25 per cent tariff on Mexican and Canadian goods as a measure to combat drug trafficking and illegal immigration, while the 10 per cent tariff on imports from China aims to address what he perceives as an unfair trade imbalance with the so-called “world’s factory”. As part of the IEEPA, Trump has also suspended the “de minimis” shipping exception, which allows parcels up to $800 in value, per importer per day, to enter the US without being taxed.
In response to Saturday’s executive orders, Canada authorised 25 per cent tariffs on a large swathe of US goods, Mexico pledged to enact retaliatory tariffs, and China’s Ministry of Commerce said it plans to challenge the Trump administration’s trade actions. By Monday, Mexican president Claudia Sheinbaum negotiated a deal to delay the tariffs by one month while Mexico and the US hashed out a plan for heightened border security.
All of this will impact the fashion and beauty industries, both in the US and outside of it, with consumers likely to bear at least some of the brunt. (US customers of Canadian retailers like Ssense and Artizia were already questioning how the changes would impact their orders; thanks to the de minimis loophole closure, they could end up paying more in taxes. Many brands and retailers began preparing for the tariffs when they were first proposed last year, but how prepared are they?
Strategies have emerged, such as tariff engineering, ‘Trump Majeure’ clauses and AI-powered inventory optimisation, to protect bottom lines. But industry experts warn that the lack of clarity surrounding Trump’s tariff plan may prove more damaging than the tariffs themselves.
“Overall, the uncertainty is killing merchants’ abilities to plan effectively,” says Sylvia Ng, CEO of Returnbear, a cross-border reverse logistics provider for e-commerce brands, noting that while the tariffs have been announced, there’s no telling how long they’ll stick around or which new ones might pop up. “There’s no silver bullet option because details are unclear, be that on timing or specific categories affected.”
Trump has indicated that his focus is on revitalising domestic manufacturing rather than targeting consumer products, notes Julia Hughes, president of the United States Fashion Industry Association. “Maybe that means that the tariff battles will focus on other products since there already are very high tariffs on apparel and footwear,” she says, referencing the current Section 301 tariffs, which apply a 7.5 to 25 per cent rate to many types of China-born clothing and shoes. “But we’re waiting to see.”
Although brands and retailers have long pursued sourcing diversification in the years since Trump’s 2018 trade war and Covid-related supply chain disruption, few are willing to move production without a clear understanding of where tariffs might hit next. Hughes fears that continued uncertainty and tension could escalate into a full-blown global trade war.
Blake Harden, VP of international trade at the US Retail Industry Leaders Association, emphasises the need for a balanced approach to trade. “Any trade policies debated by the administration - including the use of tariffs - should focus on protecting US interests, particularly from those seeking harm, while reducing costs and making daily essentials, such as food, clothing and household products, more affordable,” she says.
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