A Wren Says

So, regardless of where you fall on the political spectrum, the recent U.S. election results will have ripple effects. For the fashion industry, they will really feel it if the proposed tariffs on Chinese exports come to pass. There are multiple brands that rely on Chinese manufacturing for their goods. The question remains whether or not they will then pass those costs on to consumers, who have already been hit hard by inflation of late. There is a lot of speculation on how all of this will affect retailers based here in the states, but there are major players in the country’s fashion landscape who don’t have a physical presence here. Could this actually backfire and instead benefit Chinese business even more?

Think about this. A cost-conscious consumer sees that the price of that trendy piece of clothing is higher than she would have expected. She then forgoes the American retail landscape and heads straight to Shein. Yes, the prices are more expensive than they were before but still much cheaper (in more ways than one) than the American brand.

Of course, the idea of the tariffs is to push brands to consider other countries, including the U.S., for their manufacturing needs. However, without also supporting the infrastructure necessary to make those changes feasible, these tariffs could have an immediate detrimental impact. Could the resultant increased costs of goods lead consumers to favor lower cost Chinese brands even more? Could that lead to even lower sales for American retailers?

I by no means am an expert in economics or global politics, nor am I leading a brand that manufactures items overseas. But sitting here on the outside and observing, I do wonder about how these things impact the industry. We still have months before any changes in policy can be made by the new administration. We will just have to wait until then for things to unfold.

To read from more qualified journalists on this issue, check out this article by Don-Alvin Adegeest on Fashion United.