INSIDE THE FASHION INDUSTRY - The Immediate Impact Of Tariffs On EMERGING BRANDS

Once again, a Vogue article inspired me to write a new blog. This time, it was Vogue Business’s piece on “The immediate impact of Trump’s tariffs on fashion” that caught my attention. But as always, I chose to tailor the topic to focus on what matters most to my readers and clients: emerging fashion brands.

As the new tariffs on fashion imports return, the impact on the broader industry is undeniable—but it’s the smaller, independent designers who are facing some of the most immediate challenges. Limited budgets, smaller production runs, and a dependence on imported materials all make these policy shifts harder to navigate without a clear strategy.

Why the Tariffs Hit Emerging Designers Differently

Established fashion houses have long-standing supplier relationships, diversified production lines, and the capital to absorb short-term losses or redirect operations quickly. Emerging fashion brands, however, are typically working with leaner budgets, fewer suppliers, and a more limited customer base. That means every shift in import cost—like a 25% duty on zippers, trims, buttons, or synthetic fabrics sourced from China—can significantly disrupt a collection’s budget or even delay its release altogether.

As the Vogue Business article highlights, these new tariffs are not just affecting final garments but also raw materials and components, which many small brands import because of cost or quality considerations. Suddenly, the fabric that was once affordable becomes 10–25% more expensive. These added costs can’t always be passed on to consumers, especially in such a competitive market.

How to Stay Profitable Under Tariff Pressure

1. Reevaluate your sourcing strategy: Now more than ever, emerging fashion brands need to explore alternative production markets. While moving away from China may be challenging, regions like Latin America, Eastern Europe, and even certain parts of the U.S. are becoming more attractive due to free trade agreements and tariff exemptions. Diversifying your supplier base can build resilience and protect your margins amid fashion supply chain disruptions.

2. Renegotiate your minimums: Many emerging brands struggle with MOQs (minimum order quantities), especially when switching manufacturers. However, now is the time to start renegotiating. With global supply chains in flux, many factories are more open than ever to working with flexible terms, especially if you’re bringing consistent orders—even if they’re small.

3. Tighten your budget planning: It’s important to revisit your product development timeline, materials cost spreadsheet, and pricing strategy. Small tweaks—like simplifying trims, choosing more affordable finishes, or changing your packaging materials—can help offset increased costs from fashion import tariffs.

4. Communicate with your audience: Be transparent with your customers about the challenges you’re facing. Consumers today value authenticity and will often support brands navigating hardship, especially when the story is told with honesty and care. You don’t need to explain trade policy in-depth, but letting people know you’re working harder than ever to bring sustainable, high-quality pieces to market can go a long way.

5. Consider local production for capsule drops: Using domestic manufacturers for small capsule collections—even if the per-unit cost is higher—could reduce exposure to import fees and delays. Local production also allows for tighter quality control and faster turnarounds, helping you stay responsive to market changes.

Moving Forward With Strategy and Support

These fashion supply chain disruptions are a reminder that the fashion industry is not just about creativity—it’s also about business strategy. The brands that will continue to grow are the ones that know how to adapt, pivot, and build smart systems behind the scenes.

I’ve worked with many different designers and helped them navigate the fashion industry through all kinds of difficult times—from sourcing challenges to budget constraints and now, international trade barriers. My coaching program is designed to support each designer according to their specific goals and realities. If you’re unsure how to move forward with your next collection or feel overwhelmed by these new tariffs on fashion imports, let’s talk.

You can schedule a free 30-minute strategy call with me through the link below:

https://go.oncehub.com/BarbaraSessim