Trump's
90-day pause on the much higher tariff rates for fashion's leading sourcing
majors bar China should be used to re-evaluate sourcing strategies and
priorities for 2025.
Let’s be frank – US President Donald Trump has turned fashion sourcing in 2025 on its head. The whole world knew tariffs were coming, but 145% tariffs on China? Potentially 49% tariffs on the likes of Cambodia? These jaw-droppingly high rates surely weren’t on anyone’s crystal ball.
Things have calmed down slightly as Trump’s
90-day pause on reciprocal tariffs have taken effect. But let’s not forget even
during this short window of reduced daily headlines, all of the major fashion
exporters are still faced with Trump’s minimum 10% rate.
This so-called quiet period is a prime
opportunity for fashion sourcing executives and fashion suppliers alike to
consider how extra cost savings could be made across the supply chain moving
forward.
Boosting resilience through diversification is a tool that has been popular
since before the pandemic so that is bound to continue, but maintaining a
dialogue and valuing those trusted brand-supplier partnerships is even more
important during times of difficulty.
All sides of the supply chain need to be
kept in the conversation and included in brainstorms on how to make some cost
savings without jeopardising livelihoods and fashion’s long-term quest for
sustainability.
Last week, the founder and CEO of invent.ai
told Just Style now is the time to use AI to make fact-based decisions on what
will or won’t work. Plus, software experts informed us that PLM has officially
entered its intelligence era. This means leaning in on the technological
functionalities you already have at your disposal could be priceless.
Ultimately, consumer prices will need to go
up and even the likes of ultra-fast fashion brands Shein and Temu have told
their loyal fans to expect price rises.
This will hopefully give other brands and
retailers at every end of the price spectrum the confidence to admit to
customers these extra costs will have to come from somewhere.
And yes, some savings might be found within
the supply chain, but if your customers care about social responsibility and
sustainability – they will need to be informed that paying the extra in duties
is the only way to help responsible brands, retailers and suppliers keep their
standards high.
By Just Style