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Small to mid-size brands need to be careful about shifting strategy too fast, says Bernstein analyst Aneesha Sherman. “[They] will likely be pulling forward orders to get in before the 90 day mark and may end up with an inventory glut,” she cautions. Those who were already considering moving sourcing out of China are likely to continue on this path, says Jessica Ramírez, co-founder of retail consultancy The Consumer Collective. She recalls Trump’s last term, when many brands either moved operations out of China, or, at the least, diversified their manufacturing locations. “We will see the second wave,” she says of this moment. Paris Georgia, which was exploring shifting its China manufacturing elsewhere, is still planning to do so. If anything, this reinforces the founders’ plans, Cherrie says. “The landscape is so volatile right now that relying on a single region feels risky. We’re actively exploring alternative production hubs.” A 30 per cent tariff — though far better than 145 per cent — is not insignificant. But it’s much more manageable, Ramírez flags. This is top of mind for Cherrie. “Even if tariffs settle between 50 to 80 per cent, that level of increase fundamentally shifts the economics of running a fashion business,” she says. “It would force significant price adjustments, which goes against what we stand for.”Horse I Will Never Be Over The Hill Im Too Darn Tired To Climb It Shirt
Saunders expects that, even though equally high tariffs are unlikely, the final figure will remain higher than it was before Trump entered the Oval Office. Given this — and the president’s notoriously erratic policy strategy — brands must stay nimble. “The only thing brands can do is to ensure that supply chains remain flexible and that they are preparing for higher costs,” Saunders says. “Given all the shifts, it is still a case of prepare for the worst and hope for the best.” Some brands had already hit pause on their US sales; others had decided to shift focus away from the US market. Australia-based Réalisation Par, which manufactures its silk garments in China, paused shipping to the US on 23 April in anticipation of the China tariffs kicking in on 2 May. “We’re working behind the scenes on long-term solutions to help reduce the impact of these changes and to get Réalisation back to our dreamgirls as soon as possible,” reads a note on the brand’s website. Others had toyed with price increases, like Lingua Franca, which planned hikes at the end of April before ultimately deciding to cover the higher costs itself. Amazon reportedly considered adding a tariff tax line to checkout for its Amazon Haul platform; though once received criticism from the Trump administration, it walked it back.
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