According to CNBC, the United States will introduce new tariffs on imported goods starting in August 2025. This includes imported clothing, footwear, and accessories from major trading partners, including China, Vietnam, and Bangladesh.
Some tariffs could climb as high as 70%, CNN reports, likely driving up prices of items such as jeans and sneakers. However, the impact of these tariffs could reach far beyond higher price tags, possibly affecting the entire fashion industry, disrupting retailers, global supply chains, and the livelihoods of the workers who made these goods.
Why It’s Happening
According to Reuters, President Donald Trump announced on Truth Social late Sunday: “I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th. Thank you for your attention to this matter!”
The White House has revealed that the U.S. government is currently increasing tariffs to address the injustices of global trade, re-shore manufacturing, and drive economic growth for Americans. However, these tariffs come at a time when inflation is already high, creating added difficulties for businesses and consumers.
Sticker Shock at the Store
The Guardian has reported that, according to the head of H&M, one of the world’s largest fashion retailers, clothing prices in the U.S. are starting to increase as Donald Trump’s tariffs on imports take hold.
With these new tariffs, shoppers might soon notice price increases on popular apparel and footwear brands. The 2025 tariffs hit clothing and textiles particularly hard, leading to a short-term increase of about 37% in shoe prices and 35% in apparel costs for consumers, according to The Budget Lab at Yale. Even after this initial surge, shoes and apparel prices are likely to remain about 18% and 17% higher in the long run, respectively. This will make back-to-school and holiday shopping more expensive for millions of Americans.
Retailers Scramble
Fashion retailers are now struggling to make tough decisions: either absorb rising costs, pass them on to shoppers, or cut expenses elsewhere. Many are reducing their product variety, postponing new releases, and negotiating harder with suppliers.
Some companies are even warning investors of potential additional costs totaling hundreds of millions of dollars this year, while others are scaling back on their marketing budgets and store expansions to protect their profits.
Diversifying Supply Chains
Brands are also trying to diversify their supply chains and reduce their dependence on China, but relocating production isn’t easy. Countries like Vietnam and Bangladesh are also facing steep tariffs, and moving manufacturing elsewhere is slow and expensive.
Meanwhile, U.S. manufacturing isn’t expanding much at the moment, as American factories struggle with higher labor costs and limited capacity, leaving brands with few easy options.
Global Trade Turbulence
Suppliers in countries like China, Bangladesh, and Vietnam are already grappling with canceled orders and are renegotiating contracts as U.S. buyers demand lower prices to offset the tariffs.
Some factories have even begun cutting workweeks or laying off employees. This uncertainty is sending shockwaves through the global fashion supply chain, affecting employees and the economies of major garment-producing countries.
Workers and Factories Feel the Strain
With brands pushing for lower prices, factories might have to reduce wages or lay off workers to survive. In some countries, like Bangladesh, billions of dollars in orders are being delayed or put on hold, putting jobs and livelihoods at risk.
Labor advocates have stated that the burden of these tariffs will hit the lowest-paid workers in the global fashion industry the hardest, further increasing economic insecurity.
Political and Policy Moves
Countries facing these tariffs are trying to strike deals with the U.S. to reduce the impact. While some have negotiated lower rates, others are preparing themselves for the full brunt.
Lawmakers in Washington are currently discussing emergency relief for affected retailers and consumers. The policy landscape remains uncertain, with the possibility of more changes as trade negotiations continue and election-year politics intensify.
Consumer Advice
But what should you do now? Consumers are advised to buy essentials before August to avoid these price increases. Consider buying in bulk or shopping off-season to avoid additional costs.
You can also try alternative brands, resale, or rental options to save more money. Be on the lookout for promotions as stores try to clear inventory before these costs rise.
Major Changes
The wave of tariffs taking effect in August could significantly change fashion shopping in the months to come, raising prices, disrupting supply chains, and pushing brands and consumers to adapt.
Though the full impact of these tariffs will unfold with time, one thing is clear: the price of fashion is about to climb, and the consequences will be felt by everyone, from shoppers to factory workers.