Suhaila Khujali Elamin '28
Disclaimer: This article contains facts that were accurate at the time this article was written, not published. Some facts might have changed by the time this article is released.
The clothing industry and Springside Chestnut Hill Academy students are going to be impacted by President Trump’s approaching tariff increase in the United States as it affects a wide range of businesses, not just in the U.S. but also overseas.
“Tariffs are basically an import tax that is paid to the US government when goods are imported into the United States. It’s also referred to as duty, customs duty that you pay to the government… is import tax,” explained the Head of Global Trade and Compliance at Urban Outfitters, Michael Lambert.
For example, Lambert said, “Cotton tops that you import into the United States, you pay 16% duty on. If you are buying something for $10 from an overseas factory, you would pay the US government 16% of that $10. [You would pay] $1.60 to the government when the goods are imported into the US. When you add a tariff to [a product], say it’s right now 10% on a Chinese product, suddenly… the 16% tariff that you pay to the government becomes a 26% duty that you pay to the US government when the goods are imported. So that $1.60 that you pay on a $10 item suddenly becomes… $2.60, and that’s what you have to pay.”
According to the United States International Trade Commission, “In 2023, the U.S. imports of apparel totaled $79.3 billion, with the majority sourced from Asia.” The U.S. is considered the largest country importer in the world, and roughly 40% of overseas clothing production comes from China. More than 97 percent of apparel sold here is made in other countries, according to the American Apparel and Footwear Association.
At the time this article was written, President Trump’s administration plans to implement an additional 25% tariff on imports from Canada and Mexico and a 10% tariff on imports from China on April 2nd, 2025.
The difference regarding China is the policy de minimis. “What that means is a product that is shipped to U.S. customers from [China] that’s under $800… you don’t pay [tariffs]… De minimis was removed from China. Most products shipped from China… direct[ly] to consumers come in under $800. Temu and the chains… pay no duty right now because… the vast majority of their shipments are under $800. With de minimis going away, I would expect that anything that you purchase from a foreign country that’s shipped direct[ly] to you, the price will go up.” This means that clothing packages will be increasingly expensive with tariffs that we’ve never experienced before.
Brands like Shein, Amazon, and Temu, popular online clothing stores that teenagers like since they are not only affordable but also abundant and provide quick and easy shipping, will be impacted by these tariffs.
When asked why she shops at cheaper clothing stores and fast-fashion sellers, SCH senior Leah Laudenbach said, “I have shopped at Amazon a couple of times, and while I find the quality not so good, the prices are more affordable and it’s easier to find what you’re looking for.”
SCH senior Farah Salelhi-Horgan, when asked if she had seen spiked prices in in-person stores, said, “Yes, but I recently switched to [in-person] shopping in different countries where their currency is less in order to buy affordable clothing. For example, I will buy a more affordable and arguably better quality prom dress in Portugal when I go.”
According to Nancy Center, SCH school store marketer, “Products might not be affected immediately due to the inventory that vendors currently have in stock, but not too long after the tariffs are put into effect, you will see price increases. Currently, the tariffs are on hold, so we have not seen any larger-than-normal yearly price increase due to cost of living increases, but we can expect to see an increase if the tariffs do go into effect.”
Many goods and services are created through a supply chain, a network of all the resources involved in the creation and sale of a product. With supply chains crossing multiple borders, consumers in the country that implements the tax have to pay more. Meaning consumers in the US would face a price increase on products. The raised prices on clothing items could lead to a decrease in demand, which would, in turn, mean reduced profit margins. Eventually, sellers could start cutting back on the volume of clothing that they produce, offering smaller varieties of designs and colors, fewer items, and postponing the release of new collections. If this happens, stores could start closing. Retailers catering to price-sensitive consumers, people with less money for clothing, might find it harder to raise prices without affecting sales volume.
Companies will want the cheapest material and imports for resourceful spending. Many clothing retailers will likely source materials from overseas, directly raising the cost of production. This could lead to clothing companies starting to produce lower quality or less durable products. This drastic change might also cause manufacturers to produce more goods domestically, which could result in job creation. The tight labor market may lead to underpaid jobs with excessive inflation. This job creation could possibly be at the expense of higher-skilled, better-paying positions. With the immediate need for more employees at factories, employees are less likely to be trained well or paid at a competitive standard. This could be a loss for companies as their employees lack the proper skills, and the quality of clothing will go down.
While shopping overseas is one way to avoid increased prices on clothing, there are other ways. Lambert advises, “If you have in mind that you’re going to buy things, I would buy things before April… we may see some more tariffs go into effect. So if you have the opportunity, move some of your purchases up before they do take effect.”
April Fools! It’s too late for advice, just start cutting back on that shopping!