LOS ANGELES — Fashion industry experts say tariffs imposed on most imports from China will disproportionately affect the fashion industry — especially fast fashion — and they’re anticipating those higher costs will push consumers to shop secondhand.
According to the Observatory of Economic Complexity, 98% of clothing in Americans’ closets is imported to the United States from China. China accounts for 22% of the apparel market in the U.S.
Kyle Handley, an economist with UCSD who specializes in international trade, says various sectors of the fashion industry will be affected differently.
“I would think that on the goods that are coming from China we might see markups of 25%, or even 50%,” Handley said. “The producer of a leather purse might be able to absorb some of the tariff shock. But for other things like t-shirts, jeans, and tennis shoes, the margins are so low that they have to pass them onto the consumer.”
Not everyone is bemoaning the increase in prices of fast fashion or luxury brands. Environmentalists say this switch in consumer spending trends may signal a large shift towards sustainability in fashion.
