From houseware to food, the trade war has claimed victims in various markets, leaving average consumers to bear the repercussions. This economic conflict arises from world leaders disagreeing on matters that the general public has no say or influence over. As tariffs are implemented on imported goods, we now see their compound effects on the market. Almost everything is more expensive than before, and if you thought the old prices were ridiculous, then you must be absolutely distraught now. Imported clothing is another recipient of this additional tax, which means it costs an arm and a leg to obtain good-quality and fashionable clothes. Each clothing item is affected in its own way, so let’s see just how this trade war has infiltrated our closets.
1. T-shirts
Among the most imported items from China, T-shirts made from cotton, synthetic fibers, and blends make up a large percentage, especially in large-scale fashion retail. A 25% tariff was imposed on T-shirts, which has led big retailers that rely on imports to sell them cheaply to increase their prices.
2. Dresses
Feminine clothing is a cash cow for fast fashion industries. Their strategy is to establish a market for affordable clothes, even if of low quality, targeting female consumers who tend to make more frequent purchases than their male counterparts. Dresses and their styles specifically evolve very often and are relatively labor-intensive to manufacture. Sourcing such booming products from places that can guarantee a fast turnover and match the pace of changing styles saves retailers a good penny. However, the recent economic climate has led to a shift in sourcing from countries like Cambodia and Indonesia. This change is accompanied by a shift in overall production cost due to the manufacturing conversion, so it is not uncommon to see a price rise for the same dress, for the most part.
3. Trousers and Pants
Even American brands like Levi’s source their materials from Chinese factories. Pants require complex tailoring from the pockets, zippers, linings, pleats, and making sure seams are durable. This makes low-cost labor even more essential. There are only a few factories that competitively produce trousers domestically, and even pants that are under $40 at retail are most likely imported.
4. Blouses and Shirts
Blouses and shirts are only as desirable as the quality of the tailoring. You can say these are an outfit’s main points, so people focus heavily on the style and potential wearability. Chinese factories dominate this market with their high-tech machines that guarantee a fast-paced and high-output, and, at the same time, produce crisp cuts and clean stitching. Not any factory can produce branded blouses and shirts, but mid-tier brands such as J.Crew and Banana Republic have already begun outsourcing their shirts to India and Vietnam.
5. Pajamas and Sleepwear
Facebook – PajamaGram (left)
The work-from-home culture has gotten people to spend more money on luxurious and stylish pajamas. A boom in loungewear and pajama sales accompanies this trend, as people will be staying in them for longer periods of time. However, these clothing items are not immune to the effects of the trade war. Sleepwear is a volume-heavy import due to its universal necessity across all ages and genders across the world and income levels. In addition, people may find themselves frequently replenishing these items because of constant wear and quicker turnover. Despite this, the tax imposed on bulk items imported into America makes it difficult to offset costs without raising prices.
6. Sweaters and Pullovers
Pixabay – Pexels (left)
China’s access to raw materials unique to this clothing item, such as Mongolian cashmere, gave them an edge among other manufacturers. Not only do retailers require the assets for production, like manpower and machinery, but also the location of materials. In addition, sweaters and pullovers are often knit-to-shape garments. The circular knitting machinery needed to achieve this is heavily concentrated in China.
7. Jackets and Windbreakers
Prominent jacket brands like Columbia and The North Face also rely on imported products to supply their stock. Such specialty items are multi-material, meaning they are composed of various components and are made up of multiple panels. This results in the successful production of innovative waterproof or tear-resistant jackets and windbreakers. All this is primarily attributed to the Chinese manufacturers’ ability to maintain its competitive edge by delivering the necessary modifications a brand requires. Quality may suffer because brands now have to look elsewhere for manufacturers unaffected by the trade war.
8. Socks and Hosiery
These items are ultra-low-margin yet high-volume products. As a consequence, even a slight tariff can wipe out profitability. A single pair sold may not seem like significant income, but because of its high turnover rate, you can see multiple pairs sold even to one person without realizing it. Knowing this, bulk purchases are a smart move on the brand’s part. By outsourcing it to a country equipped to produce the necessary extreme amount of them, the selling price can be adjusted to a very affordable amount. Sadly, with the trade war going on, prices either rise or stay the same, while decreasing in quality and quantity. A 4-pack may now cost the same as what a 6-pack did before tariffs.
9. Underwear
Although the underwear market is relatively static, with designs and structures staying similar even across decades, Chinese factories can provide products at a cheap price, even in a market that isn’t so diverse. So although underwear sales aren´t skyrocketing every so often, brands are assured that they can stay consistent with their sales without having to worry about overly expensive production costs. However, with the trade wars, brands might worry about consumer reactions to increased prices. Even if a certain pair is marketed and branded as the best choice with top-of-the-line features, at the end of the day, underwear is underwear, and the general public might not be so willing to stay loyal to a brand despite price increases.
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