Beyond tariffs: reimagining fashion in an age of limits
(Originally published on Substack)
"The 21st century challenges demand a new economic mindset... We cannot continue to pursue limitless GDP growth on a planet with finite resources."
– Kate Raworth, Doughtnut Economics
Since returning to office in January 2025, Trump has gone bananas on his tariff agenda, with significant implications for the global fashion industry. These policies are forcing a dramatic reassessment of how clothes are made, sold, and consumed in America and beyond. While headlines focus on economic metrics for industry, a deeper question emerges for me —
Could these trade disruptions accidentally trigger a much-needed reassessment of our consumption habits?
For the last few centuries, we've built systems on the assumption that globalisation would continue indefinitely and that unchecked growth is the key to true economic success. This foundation was questioned after the Great Depression, but for many of us – especially white citizens of the Global North – we’ve only known boom periods. What we are seeing now is that once again, the foundation is being questioned and like after the Great Depression, many won't survive the transition.
To me, the impact of these tariffs can be best understood through the lens of three primary stakeholders: brands, consumers, and those within the supply chain who actually make our clothes, with each facing immediate short-term impacts and long-term shifts.
Brands: Absorb, Pass On, or Transform?
All fashion brands – from ultra-fast (Shein, Temu) to luxury conglomerates (LVMH Group) to the countless small-to-mid-sized labels in between – face an immediate financial dilemma as production costs surge.
Short-Term Impact:
Operating margins are compressing by 15-30% for brands heavily dependent on Asian manufacturing
Scrambling to renegotiate supplier contracts and find alternative production locations (note: many people lose out when you race to the bottom line)
Inventory planning becoming chaotic as lead times extend and costs fluctuate
Many smaller brands facing existential threats without the capital to weather the transition
Long-Term Trajectory:
Accelerated consolidation as larger players acquire struggling competitors
A fundamental rethinking of the cheap, disposable fashion model that defines the 21st century
Potential shift toward fewer, better products with higher margins to offset increased production costs
Potential renaissance for domestic manufacturing, particularly in premium segments
Growing divide between mass-market players who can absorb costs and specialty brands catering to price-insensitive consumers
Consumers: The End of Ever-Cheaper Fashion?
Before I dive into this section, I want to take a moment to pause and reflect on word choice. I’ve worked in and around fashion for nearly twenty years and the word to describe us – the people who buy and love fashion – is “consumer.” Derived from the verb “to consume”, meaning “to use fuel, energy, time, or a product, especially in large amounts.” (Merriam-Webster). There is something very icky and dehumanising about this word.
Semantics aside, we have grown accustomed to constantly declining apparel prices relative to other goods. E.g., while dresses get cheaper, milk gets more expensive. The perceived value of cheap fashion (and home furniture and decor) allows people to feel richer. There are extensive studies on the role of advertising and marketing in selling this false dream which I will dive into on another day.
Early consumer research suggests a mixed reaction. While 67% of shoppers report concern about rising prices, 42% also indicate they’re becoming more thoughtful about purchases – buying less, but buying better. Here are my thoughts on short vs long term reactions:
Short-Term Impact:
Price increases of 12-25% hitting store shelves and e-commerce sites
Reduction in promotional discounting as brands protect margins
Spending shifts toward essentials as discretionary fashion purchases become less affordable
Growing awareness of the economic forces behind clothing production
Long-Term Trajectory:
Potential reset of consumption expectations – fewer items, higher quality
A cultural shift toward longer-term ownership and investment pieces
Growing emphasis on durability and versatility in purchasing decisions
Widening inequality in fashion access as affordability becomes more challenging for lower-income consumers
Supply Chain Workers: The Most Vulnerable Stakeholders
Lost in many discussions about tariffs are the millions of garment workers in the Global South whose livelihoods depend on our consumption patterns. Notably, the vast majority (~80%) of these workers are women, relying on the global manufacturing industry to support their families. Again, I could talk for ages on this issue, but I would refer everyone to watch True Cost or River Blue for a deeper understanding of who actually makes your fashion.
Short-Term Impact:
Factory closures and layoffs as orders decrease or move to different countries
Downward pressure on wages as manufacturers try to offset tariff costs
Deteriorating working conditions as corners are cut to maintain margins
Long-Term Trajectory:
Potential for improved conditions in nearshore manufacturing locations with stronger labour protections
Technological displacement as automation becomes more economically viable
Migration of skilled workers following shifting production patterns
Need for international development initiatives – something the US just cut – to support communities built around apparel manufacturing
Clean Clothes Campaign has documented extensively how garment workers often bear the brunt of industry disruptions. But beyond the day-to-day work conditions, it doesn’t take much imagination to envision what happens to a country’s economy if one of its major exports collapses and nothing is there is assist. We are already getting glimpses of this with the end of US AID.
The Resale Market: Temporary Winner or Long-Term Solution?
One immediate beneficiary of the tariff situation has been the secondhand market, which has seen remarkable growth in recent years. As a former consignment store owner, this has been a really delightful shift to witness. But, as I’ve said time and time again, there is no perfect solution to tangled problems.
At the end of the day, resale is treating a symptom, not the disease. This is something I have observed countless times in my store – we’re still producing too much, too cheaply, and with too little thought to longevity.
Short-Term Boost:
Resale platforms reporting 30-40% transaction growth since tariff implementation
Price gaps between new and used items widening, increasing the value proposition
More first-time secondhand shoppers entering the market
Brands launching or expanding their own resale programs to capture this shift
Long-Term Concerns:
Quality degradation as fast fashion items increasingly dominate the secondhand pipeline
Shorter useful lifecycles for garments designed with planned obsolescence
A growing recognition that even robust resale can't solve fashion’s fundamental sustainability issues
Potential for regulatory scrutiny of greenwashing claims around resale environmental benefits
The Elephant in the Room: Do We Need This Much Stuff?
Perhaps the most profound question emerging from this disruption is one I rarely see discussed in the silos of social media commentary: is our consumption pattern unsustainable regardless of where production occurs?
The fashion industry epitomises the growth imperative of modern capitalism – constantly increasing output, accelerating trend cycles, and engineering obsolescence. Long before these tariffs, the system was showing signs of strain:
Global textile waste has doubled since 2000, with 92 million tons annually
On average, Americans buy 68 garments per year (Australians 56 garments per year), wearing each item fewer times before disposal.
Textile production is estimated to be responsible for about 20% of global clean water pollution from dyeing and finishing products.
Fashion production accounts for ~10% of global carbon emissions.
I know numbers can feel cold and vague, so I encourage everyone to have a look at the work of the Or Foundation and Kantamanto Market in Ghana. Kantamanto is the largest secondhand market in the world, receiving nearly 15 million garments a week from the Global North. It experienced a horrific fire in January 2025, and is still rebuilding, but the photos of the market give a real sense of scale to the problem of our consumption and the reality that there is no “away” when you throw things out.
Looking at all these factors, it raises the bizarre and unexpected question – could these tariffs inadvertently create space for a different model?
By making clothes more expensive, they might force a reconsideration of value, quality, and necessity. For many of us in the Global North, we have lived lives of abundance. Easy access to food, entertainment, education, and freedom of movement. We’ve gotten accustomed to things on-demand and have reaped the benefits of centuries of exploitation. These tariffs are making us realise what millions have long known – growth cannot continue unchecked.
Looking Ahead: Unavoidable Transformation
The fashion system that emerged over the past century was built on assumptions that no longer hold. Regardless of how long these specific tariffs remain in place, the industry faces unavoidable change.
For brands, survival depends on moving beyond reactive cost-cutting to fundamentally rethinking their value proposition.
For consumers, a greater awareness of clothing's true cost may lead to more intentional consumption patterns.
For workers, the challenge is ensuring that industry transformation improves rather than further compromises their wellbeing.
For society as a whole, perhaps the most valuable outcome would be a collective reassessment of what constitutes enough – enough production, enough consumption, enough stuff.
As we navigate these changes, the most important questions may not be about supply chains, margins, or prices, but about purpose: What is fashion for? What value does it create? And how can it function within planetary boundaries while meeting human needs?
The answers will shape not just what we wear, but how we relate to material goods in an increasingly resource-constrained world.