Trump, Tariffs, and Their Impact on Fashion
Just when you thought President-elect Donald Trump couldn’t possibly affect anything else—there’s no way he could cause any more damage than his current path—news articles start flooding in about how he might drastically impact the fashion world through his proposed tariff increases. Somebody needs to tell him that just because he’s the U.S. president doesn’t mean he’s our fashion president—because we already have one, and she’s called Anna Wintour.
What are tariffs?
“To me, the most beautiful world in the dictionary is a tariff, and it’s my favourite word” – Donald Trump
Since we, unfortunately, have to consider Trump’s favourite word, tariffs are essentially taxes imposed by one country upon any imported/exported goods. They are billed to and paid for by the companies moving these products.
Since the companies are billed, it’s expected that they will inevitably have to raise prices to accommodate the higher tax level they must pay. Another option is a reduction in something else, such as the quality of clothing. Either way, something is lost.
Fashion journalist Amy Odell writes in BackRow, “The price hikes would create a cascade of consequences for consumers who buy clothes, which in turn could adversely affect the fashion industry in many ways”.
Trump’s fantasy and proposed plan
Donald Trump plans to raise tariffs on imports to between 10% and 20%. For China, he has proposed increasing them to 60%. His means for raising tariffs is to increase revenue for the federal government. However, he also wishes to get back against other countries, as he mentioned during his debate with Kamala Harris.
“Other countries are going to, finally, after 75 years, pay us back for all that we’ve done for the world” – Donald Trump
His economic plan, revolving around payback and retaliation, is concerning. While these are just proposals at the moment, he did increase tariffs during his last term.
What does this mean for the fashion industry and consumers?
Essentially, the proposed rise in tariffs will increase the price of all clothing. The majority of U.S. clothing is produced overseas. With the majority of U.S. clothing being sourced from China, as noted in an article by Bloomberg, and the many labels we see that say “Made in China,” it’s safe to say that things are going to get expensive for U.S. shoppers!
Susan Scafidi, founder and director of Fordham’s Fashion Law Institute, says in BackRow, “Everything’s going to be more expensive”.
This does not only apply to new retail prices; however, older products that are re-sold will also increase in price. This is damaging to the fashion world because consumers have to pay more. With such costly increases, many people won’t be able to afford that. A BackRow article explains that the industry has already seen an increase in consumers looking for discounts and secondhand attire, resulting in struggle.
It’s not only about catching up to the latest trends. His raised tariffs are also damaging for buying basic clothing necessities, such as school-wear for children. According to a study in The New York Times, the new tariffs may increase household expenses to more than $2,600 yearly if enacted. This highlights the impact on consumers.
Ultimately, if he enacts his raised tariffs, prices will increase—inevitably impacting the fashion world through cost increases and potential quality declines. Although he is not yet president, it might be a good idea for U.S. consumers to get shopping, stocking, and spending before the prices go up, up, and up.