On 1 February US President Donald Trump announced a swathe of tariffs on imports from Mexico, Canada and China that will have an impact on the fashion sector.

Under the new terms, all goods coming in from Canada and Mexico will have a 25% tariff applied and a 10% additional tariff is being applied to all imports from China.

Both Canada and Mexico reacted with retaliatory tariffs.

Canadian Prime Minister Justin Trudeau said Canada would impose 25% tariffs on $155bn Canadian dollars (£85.9bn) worth of US goods in response to Trump’s 25% tariffs on goods. Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a rate of 10%.

Duties on $30bn Canadian dollars ($20.41bn) in trade in American alcohol and fruit will take effect on Tuesday when the US tariffs are set to start. The remaining $125bn Canadian dollars ($85.02bn) will take effect in 21 days which would allow Canadian companies and supply chains time to seek alternative sources.

In an address to the American general public, Trudeau warned of the “real consequences” which would be seen in higher prices of groceries and other goods.

And China’s commerce ministry has threatened to file a suit with the World Trade Organization over the new tariff imposition, adding it “seriously violates” WTO rules.

Fashion industry reacts to Trump tariffs

Though expected with Trump’s arrival, the news has sent shockwaves through the US fashion and retail sectors which are already battling soaring inflation and a dampened consumer environment.

The National Retail Federation’s executive vice president of government relations David French said while the organisation supported the Trump administration’s goal of strengthening trade relationships and creating fair and favourable terms for America, imposing steep tariffs on three of the country’s closest trading partners “is a serious step.”

He continued: “We strongly encourage all parties to continue negotiating to find solutions that will strengthen trade relationships and avoid shifting the costs of shared policy failures onto the backs of US families, workers and small businesses.

“The retail industry is committed to working with President Trump and his administration to achieve his campaign promises, including strengthening the US economy, extending his successful Tax Cuts and Jobs Act, and ensuring that American families are protected from higher costs.”

A study by the National Retail Federation (NRF) that was published in late 2024 revealed that if new tariffs on imports to the US were implemented, US consumers could lose between $46bn and $78bn in spending power each year.

Meanwhile, the American Apparel and Footwear Association (AAFA) president and CEO Steve Lamar said: “Widespread tariff actions on Mexico, Canada, and China announced this evening will inject massive costs into our inflation-weary economy while exposing us to a damaging tit-for-tat tariff war that will harm key export markets that US farmers and manufacturers need. We should be forging deeper collaboration with our free trade agreement partners, not taking actions that call into question the very foundation of that partnership.”

AAFA’s senior vice president of policy Nate Herman added: “During this time of high inflation, this is not the time to impose new costs on US supply chains. Instead, our industry needs tariff relief and commitment to smart trade policy and strong trade partnerships. We need to renew expiring and expired trade preference programmes with our allies and strengthen the competitiveness of our free trade agreement with Central America to stem the tide of migration.”