There
are warning signs that President-elect Donald Trump's second term could be more
disruptive to the fashion supply chain than his first.
We all know the countdown is on for Trump’s return to office (20 January if you’ve managed to miss it), and he’s already taking more than his fair share of global headlines.
In just one week the news was awash with his
threat to grab Greenland from Denmark by financial or even military means for
“national security” reasons and the “unconditional discharge” verdict from his
hush money court trial.
In a turn of events for apparel, there were
reports of Trump’s advisors planning a new streamlined tariff plan that would
potentially see duties being applied to selective sectors deemed vital for
national or economic security as opposed to all industries.
Crucially, there was no mention of apparel
being on the new selective list — which for a few hours at least —
made it seem like the sector could avoid being in the immediate firing line.
However, in typical Trump fashion he quickly
turned to his social media platform Truth
Social to condemn the reports that had quoted his aides as sources.
In fact, he went as far as to dub The
Washington Post’s original article as “fake news”.
The president and CEO of the
American Apparel and Footwear Association (AAFA) Steve Lamar reminded Just Style:
“There is still little clarity about exactly how the incoming Administration
will announce its new tariff policies”.
While, United States Fashion Industry
Association (USFIA)’s president
Julie Hughes added: “No one likes uncertainty but it is the reality for at
least the next few weeks”.
And it’s not just Trump’s approach to
tariffs that will impact the global apparel industry. We will all be watching
closely to see how he plans to tackle supply chain challenges around the world.
The Panama Canal’s high shipping fees, which
Trump calls “ridiculous” as well as the ongoing supply chain issues in the
region appear to be top of his hitlist, but of course this could change.
He warned on his social media platform that
he will “demand” the Panama Canal be returned to the US if the country cannot
ensure the “secure, efficient and reliable operation of the channel”.
An industry expert told Just Style it is
just “threats” but suggested he could “exert pressure on Panama to reduce
shipping and transit costs”.
So, how can the global apparel sector
prepare for the uncertainty surrounding Trump’s 2.0 presidency?
The fashion supply chain is adept at
tackling short- and long-term disruptions. The global pandemic was a real
lesson in navigating uncertainty and the fashion industry managed to show its
resilience during those difficult times.
Trump is predictably unpredictable, which
although frustrating, does mean sourcing executives can plot out how to
navigate the most extreme potential impacts to the supply chain.
Similarly, he has been in power before,
which arguably makes it easier to predict what these most extreme actions could
be.
His unfiltered stream of consciousness will
continue to spark controversy, but again this is another certainty the sector
can weave into its supply chain plans.
Taking a step back from national and
international news could be a wise move as mainstream publications will
continue to generate scaremongering headlines out of his outrageous comments.
Instead, fashion sourcing executives should
keep a much closer eye on the Trump administration’s actions as well as follow
Just Style’s in-depth analysis of the direct impacts to the fashion supply
chain.
Trump will be in power for four years – that
is another certainty for the sector to work with – and thanks to the 22nd
Amendment to the US constitution he cannot run for president for a third term.
Meanwhile, the impacts of climate change,
the importance of having key global supply chain partnerships, understanding
advances in AI and improving ESG are all cross-political and cross-border
issues that will be here for many years to come.
By Just Style