How the 2025 Tariffs Impact Your Fashion Brand (A Simple Breakdown)

Over the past few years, the fashion industry has faced some challenges. From supply chain disruptions during COVID to rising material and shipping costs, and overall economic uncertainty, many brands have had no choice but to raise their prices to adapt.Now, in 2025, new tariffs could be adding even more pressure.

In this post, let's break down what's happening, why it matters, and how to move forward strategically, especially if you're just starting out and working with small margins.

What Are Tariffs, and What Changed in 2025?

What Are Tariffs?
Tariffs are taxes the U.S. government imposes on products imported from other countries — including fabrics, clothing, packaging, and trims. This means if your materials or products come from outside the U.S., you might now have to pay more.

Who Pays for the Tariffs?
When the U.S. imposes tariffs on imports from China, for example, it's not China that pays it — it's the U.S. importer (the company or brand buying the goods). That cost usually gets passed down the chain:

1. From the importer to the brand or retailer

2. From the brand to the customer (through higher prices)

So, tariffs are essentially a tax on the buyer, not the seller. They make imported goods more expensive, encouraging U.S. companies to buy domestically instead.

New Tariffs in 2025: What You Need to Know

On April 5, 2025, President Trump declared a national economic emergency under the International Emergency Economic Powers Act (IEEPA) and announced:

• Here's what was announced:

  • A 10% blanket tariff on imports from all countries (excluding certain USMCA-compliant goods - A product is "non-USMCA compliant" if it doesn't meet the United States-Mexico-Canada Agreement's criteria for preferential tariff treatment, resulting in higher tariffs when imported.)

  • Reciprocal tariffs The U.S. is raising tariffs on countries that sell more to us than they buy from us, with specific increases targeting key trading partners.

  • End of the $800 duty-free rule for small shipments starting May 2, 2025. (the U.S. used to let in small shipments under $800 from countries without charging any duties)

  But — there’s a major update:

  As of April 9, 2025, the White House has issued a 90-day suspension of most country-specific tariffs, excluding China.
  The general 10% tariff remains in place during this period.

  Here are the current key takeaways:

  Country	Tariff Rate	Status
  China	145%	Increased
  Vietnam	Suspended (was 46%)	90-day hold
  Bangladesh	Suspended (was 37%)	90-day hold
  Sri Lanka	Suspended (was 44%)	90-day hold
  EU	Suspended (was 20%)	90-day hold
  Cambodia	Suspended (was 49%)	90-day hold
  Canada/Mexico	0% if USMCA-compliant; 25% if not	Unchanged

  🔔 Note: This 90-day pause could be extended, modified, or ended at any time depending on trade negotiations, so it’s critical to stay informed.

Why Is This Happening?

According to official White House info, this isn’t just about trade — it’s being framed as a national emergency related to:

• The fentanyl crisis and drug trafficking (especially from Mexico and China)

• A huge U.S. trade deficit (over $1.2 trillion in 2024)

• Unfair trade practices (such as currency manipulation, VAT taxes, and tariff imbalances)

• The decline of U.S. manufacturing and the push to bring jobs and production back to the U.S.

In short, these tariffs are designed to protect U.S. jobs, national security, and global trade leverage.

And while I think it’s a good thing to bring jobs and manufacturing back to the U.S., I can’t help but ask — how long will it actually take to rebuild a strong, affordable domestic manufacturing industry?

How long will American businesses and consumers have to absorb the consequences before we see the benefits? And realistically, don’t we still need to import the machinery and equipment needed to scale production here? For now, much of what we rely on still comes from abroad.

These are the questions we should be asking — not to be negative, but to be strategic, clear-eyed, and prepared. Because in the meantime, brands like yours are the ones being squeezed the most.

How This Affects Fashion Brands Like Yours 

If you’re importing fabric, trims, packaging, or finished goods — or manufacturing from other countries — these tariff changes matter a lot.

Here’s what to expect:

• Higher Costs (especially if you’re sourcing from China — that 145% tariff is steep)

• Temporary Relief if sourcing from other countries during the 90-day pause

• Increased Uncertainty, making it hard to forecast pricing and profit margins

• Slower Shipments due to added paperwork, customs clearance, and enforcement

Even if you’re manufacturing your clothing and accessories in the U.S., the fabrics, zippers, buttons, or packaging you source overseas may now be subject to higher tariffs. It’s also important to note that many fabric and trim suppliers in the U.S. import their goods, meaning even domestically sourced products can still be impacted by tariffs.

What You Can Do About It

Don’t panic. Get proactive. Here’s what you can do:

1. Check where your materials come from 🧵
   Ask your factory or suppliers about the countries your items are being shipped from. If they’re coming from countries hit by tariffs, you may want to explore new sourcing options.

2. Explore tariff-friendly countries ✈️
   Look into working with suppliers from countries with lower tariffs or trade agreements with the U.S., like Mexico (if USMCA-compliant), Colombia, or some Central American nations.

3. Look into domestic production 🇺🇸
   With overseas prices rising, U.S. production might now be more competitive. Plus, there are still some amazing manufacturers in the U.S. — and as more brands shift production here, costs could go down over time. "Made in USA" can also be a powerful brand story. 
   Ready to explore USA-based factories? Check out our Sourcing Directory in the Make Good Fashion shop where you'll find a curated list of some of our favorite factories right here in the U.S. 

   Need help figuring out where to start? You can also download our free guide on how to find a manufacturer — it's a great resource if you're rethinking your production strategy and need help on where to start. 

4. Audit your product design ✏️
   Work with a tech pack expert or production consultant to adjust materials or construction. Sometimes, small changes can help lower your cost to produce and your tariff rate.

5. Be transparent with your customers 👩‍🏫
   If you do need to raise prices, communicate clearly. Let your community know that your commitment to ethical production, fair wages, and quality materials hasn’t changed — but the global landscape has.

Final Thoughts

These 2025 tariffs are big and complex, but with the right strategy, they don’t have to derail your dreams. As a brand founder, it’s your job to adapt, pivot, and keep your values front and center — even when things are tough.

Stay encouraged — this isn’t set in stone.
These tariffs were introduced quickly under emergency powers, but they’re part of a larger negotiation strategy — especially with countries like China. The 145% tariff is widely seen as a pressure tactic, not a permanent rate. These policies are still evolving and could change through ongoing trade talks. So stay flexible, stay informed, and hope for the best!

Want more insights?
For a deeper dive into how these tariffs work and what they mean for your fashion brand, check out this helpful explainer video.

Sources

• Office of the United States Trade Representative (USTR). President’s National Economic Emergency Declaration and Tariff Updates (April 5, 2025). Available at: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/april/president-announces-national-economic-emergency

• White House Fact Sheet: Tariff Rates by Country (The White House, April 2025). Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2025/04/05/annex-i-tariff-rates-by-country/

• CBP: Section 321 Changes Effective May 2, 2025 (U.S. Customs and Border Protection). Available at: https://www.cbp.gov/newsroom/national-media-release/section-321-tariff-updates

• U.S. Department of Commerce: U.S. Trade Deficit Report (March 2025). Available at: https://www.commerce.gov/news/press-releases/2025/03/us-trade-deficit-exceeds-12-trillion

• Reuters: U.S. Tariffs Hit Global Fashion Supply Chain (April 7, 2025). Available at: https://www.reuters.com/business/retail-consumer/us-tariffs-hit-global-fashion-supply-chain-2025-04-07/

• Bloomberg: China Imposes 84% Tariff on U.S. Goods in Response to Trade Action (April 9, 2025). Available at: https://www.bloomberg.com/news/articles/2025-04-09/china-imposes-retaliatory-tariffs-on-us-imports-including-apparel