Fashion’s new trade crisis: How brands are scrambling to navigate Trump’s tariffs

On February 1, President Donald Trump enacted sweeping tariffs on imports from Canada, Mexico and China, marking one of the most aggressive trade moves in recent history.

The tariffs, which take effect on February 4, impose a 10% tax on Chinese goods entering the U.S. On February 3, planned Mexican and Canadian tariffs of 25% were halted for a month after conversations with the president of Mexico and Canadian Prime Minister Justin Trudeau. Positioned as a move to protect American jobs and curb illegal trade, the decision to impose these tariffs has sent shockwaves through the fashion industry, where global supply chains and razor-thin margins leave brands particularly exposed.

For fashion companies — ranging from luxury houses sourcing fabrics in Italy to direct-to-consumer brands manufacturing in China — the question is no longer whether the tariffs will have an impact but rather how severe the fallout will be.

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