Trump has officially confirmed his tariff war against China, Mexico and Canada, so is the fashion sector right to expect the worst for 2025 or can it be turned around?

The UK fashion retail sector is already having a particularly tough time thanks to a lack of consumer confidence with the term “geopolitical uncertainty” already being thrown around for some of the retail profit warnings announced in late 2024 and early 2025.

UK fashion retailer Primark announced disappointing results for Q1 while UK fashion retailer Quiz kickstarted the year with an exit from the London Stock Exchange due to ongoing trading challenges.

The picture has been slightly more positive in the US to date, yet Levi Strauss & Co. still slashed its 2025 profit forecast despite a strong Q4 and VF Corp is still being careful about its full year outlook despite swinging to profit in Q3, suggesting caution is in the air.

It’s likely the US fashion sector is preparing for what’s to come as Trump has now officially announced an extra 25% tariffs on US neighbours Canada and Mexico; and crucially an extra 10% on China — where most US apparel is still made and imported from.

Tariffs is arguably just another word for tax with the extra 10% cost having to be passed on to US consumers, which could ultimately hit fashion retailers and brands hard as the year progresses.

And not to mention the fact that retaliation from all of the tariffed countries is to be expected with the EU likely to be next on Trump’s hitlist.

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In just a few weeks in office he’s made it clear that he’s not afraid to shake up the strong relationships his nation has built globally over many years and ultimately is willing to put global trade in the balance.

So the big question is — can fashion brands, retailers and suppliers overcome all of this geopolitical uncertainty and turn 2025 into a profitable year for fashion?

In short, the answer is yes.

There is still optimism in the air for what can be achieved this year with global fashion supply chain experts and national clothing supplier organisations from around the world telling Just Style about the countless opportunities that lie within the cracks of all this doom and gloom.

Both Türkiye and Sri Lanka can see potential to grow US market share as the US continues to distance itself from China.

US fashion brands and retailers can see the benefits of focusing on both nearshoring and sourcing ethically and responsibly from overseas to increase their own supply chain resilience.

While, Central America’s Guatemala can see its proximity to the US and being the second-largest operating port in the region, after Panama, will be highly beneficial in this new world order. As a result, it is open to opportunities that will boost its investment potential in logistics infrastructure.

It’s all too easy to blame external factors such as geopolitical uncertainty and Trump for a poor 2025 but with a little foresight and planning this year’s biggest challenges could become the fashion supply chain’s new strengths.

And who knows? We might be able to enjoy a successful 2025 after all.

By Just Style