Industry experts believe the pressures facing global fashion brands could be "significantly eased" if US president Donald Trump follows through on his recent suggestion that high tariffs on goods from China could "come down substantially".

Trump made it clear the US tariffs against China, which currently sit at 145% for fashion, will not go down to zero, but it does mark the first time he has indicated a reduction could be on the horizon.

He shared the insight at a White House news conference after US treasury secretary Scott Bessent suggested the current tariffs were unsustainable and he expected a “de-escalation” in the trade war between China and the US, according to news reports.

All countries except for China currently face a 10% base rate tariff to the US while Trump’s higher ‘reciprocal tariffs’ enjoy a 90-day tariff pause.

Once the pause ends many of the US’s leading fashion sourcing countries will face much higher tariffs with India facing a 26% hike in tariffs, Thailand facing 36%, Cambodia 49% and fashion goods from Bangladesh can expect a 37% increase, amongst others.

The steep 145% tariffs on Chinese exports to the US, which are already in operation, were introduced after China imposed a retaliatory 125% tariff on US exports to China.

GlobalData senior apparel analyst Pippa Stephens tells Just Style if Trump were to reduce the tariffs on China, it would significantly ease pressures for global brands that manufacture or source their goods there.

She adds that it would also be beneficial for ultra-fast fashion players such as Shein and Temu that manufacture fashion goods in China but have a large US customer base.

She explains: “As well as reducing the urgency for brands to relocate their manufacturing and sourcing, which could be incredibly costly, it will also mean that they will not have to increase the prices of their products as much, aiding consumer sentiment.”

GlobalData retail analyst Neil Saunders agrees that any de-escalation of the trade war will be widely welcomed by apparel firms.

However, he also points out: “What’s just as important as lower tariffs is certainty around policy.

“At the moment, the policy on tariffs seems to shift with the sands, and it makes planning extremely difficult. Apparel firms want a settled state so that they can take decisions around how to structure their supply chains. Until this emerges, businesses continue to remain nimble and look for ways to take cost out of the supply chain and shift pricing to cover the greater expenses of doing business.”

Dr Sheng Lu, professor of fashion and apparel studies at the University of Delaware explains that studies consistently show China remains a critical apparel sourcing base for US fashion companies, especially those that are small and medium-sized and have limited resources to develop a diversified sourcing base.

He states: “The exceptionally high tariff rate, which has exceeded 145% since April, has resulted in a de facto “embargo” on US-China bilateral trade, hurting businesses on both sides and benefiting nobody.

“Should the tariff rate on imports from China be substantially cut and return to a reasonable level, it would relieve US fashion companies and all stakeholders along the supply chain. However, it should be noted that the uncertainty regarding the reciprocal tariffs is far from over, and there remains a significant concern that additional tariffs could be imposed on most US trading partners, including other critical apparel supplying countries like Vietnam, Bangladesh, Indonesia, Cambodia, and India, after the 90-day pause.

“Furthermore, the new de minimis rule on imports from China, starting 2 May 2025, will also affect many e-commerce businesses and fast fashion companies, and will be watched closely.”

Both Shein and Temu have told US consumers that due to changes in global trade rules and tariffs, their prices will need to go up. Irrespective of what happens with China tariffs both of these online retailers have been hit by Trump’s closure of the de minimis loophole, which had previously allowed goods under the value of $800 to reach consumers duty-free.

The International Apparel Federation (IAF), which represents global fashion manufacturers, has welcomed Trump’s decision to pause tariffs on many fashion sourcing countries for 90 days. However, it added: “The continued application of punitive tariffs on imports from China, one of the world’s largest apparel exporters, remains deeply concerning and underscores the real and ongoing risk of tariff escalation for other nations.”

By Just Style