How a Global Trade War Could Shake Up the Fashion Industry

Here are at three ways that the ongoing U.S. - China trade war can affect the profitability of the luxury and fashion sector in the mid- and long-term. Photo: Shutterstock

According to Vogue Business, If you’ve been keeping an eye on the news, you know that trade wars are making headlines, and fashion brands are caught in the middle. One day, tariffs are up. The next day, they’re paused. It’s like a rollercoaster with no clear end in sight. Nonetheless, the global trade war is affecting fashion.

Recently, President Donald Trump hit Mexico, Canada, and China with new tariffs, adding more chaos to an already uncertain situation. But then, just as quickly, he decided to hold off on the 25% tariffs for Mexico and Canada—for now, at least. This temporary break comes under the United States-Mexico-Canada Agreement (USMCA), but no one really knows what’s next.

So, what does this mean for fashion? Big brands that rely on global supply chains are scrambling. Prices on clothing and accessories could go up if tariffs return, and companies might have to rethink where they manufacture their goods. Some brands could shift production to other countries to avoid extra costs, while others might pass those costs onto consumers—meaning we might see higher prices at the checkout.

At the end of the day, uncertainty is the only thing we can count on. The fashion industry is used to fast changes, but trade wars add a whole new level of unpredictability. If things keep shifting, we might see a major shake-up in where and how our clothes are made.

For now, all we can do is wait and see what happens next. One thing’s for sure—fashion is in for a wild ride.