The Impact of Tariffs on the Fashion Industry: Why Your Clothes Cost More

Tariffs don’t just sit on paper — they shape how much we pay at the register. Here’s how the costs ripple:

1. Import & sourcing costs rise
   Every extra tariff increases the base cost of a garment or pair of shoes before it ever hits a store.

2. Brands adjust margins
   Some absorb part of the cost to keep shoppers happy, but most pass it on.

3. Retail prices creep up
   That $80 pair of sneakers might suddenly be $95 with no difference in quality, just tariffs.

4. Consumer demand gets squeezed
   When prices rise across categories, shoppers often cut back. That puts added pressure on brands already navigating inflation and competition.

One of the strangest and most unfair quirks in U.S. tariff policy is the so-called “pink tariff.” It’s the name for a frustrating reality: women’s clothing and footwear are taxed at higher rates than men’s equivalents.

• The average tariff rate on women’s apparel is about 3% higher than men’s.

• In 2018 alone, that gap translated into women paying an extra $2 billion at the register.

• Examples include overcoats and shoes — men’s versions carry a lower rate even though they’re essentially the same item.

This hidden surcharge feels like an extension of the “pink tax” that already plagues consumer goods like razors and shampoo. It disproportionately affects women, especially those in lower-income brackets, and it highlights how outdated trade codes create inequities no one asked for.

Congress recently introduced the Pink Tariffs Study Act, requiring the Treasury Department to formally examine these gender gaps. But for now, women are still footing the higher bill.

Tariffs are considered regressive, meaning they take up a larger share of income from people with less money to spare. Clothing and shoes are essentials — everyone needs them, but lower-income families spend a much higher percentage of their budgets on these items.

So when tariffs drive up prices, the impact lands harder on those who can least afford it. A few dollars here or there might not register with high earners, but for families living paycheck to paycheck, the cost adds up fast.

Tariffs don’t just affect consumers — they force brands to rethink entire supply chains.

• Sourcing shifts: Many companies are reducing reliance on China and moving production to Southeast Asia, Central America, or Africa.

• Operational headaches: Switching suppliers means renegotiating contracts, retraining workers, and ensuring new factories meet standards.

• Uncertainty: With tariffs changing depending on trade wars or political agendas, fashion companies face constant unpredictability.
  
  

For big brands like Nike or H&M, adapting is possible (if costly). For smaller labels, tariff-driven changes can be devastating.

Tariffs have social, ethical, and cultural consequences too:

• Job insecurity abroad: In countries where garment exports are the backbone of the economy, tariffs put millions of jobs at risk.

• Stalled progress on sustainability: Brands under financial pressure often cut back on sustainable materials or fair labor investments.

• Market distortions: Outdated tariff codes create inefficiencies and inequities, like the pink tariff.

Things need to change. Here’s how policy and industry could ease the burden:

• Modernize tariff codes to reflect today’s fashion landscape.

• Eliminate the pink tariff through gender-neutral classifications.

• Extend trade preference programs like AGOA.

• Increase transparency so consumers understand how tariffs shape costs.

• Incentivize sustainable and domestic production where feasible.

The future of tariffs in fashion depends on how policymakers act. If outdated tariff codes persist, we’ll likely continue to see higher prices, distorted markets, and inequities. If reforms happen — like modernized codes, extended preference programs, and gender-neutral tariff rates — the industry could move toward a fairer, more balanced system.

Either way, the effects will be felt in something as everyday as our clothes. Fashion may seem like it’s about trends and aesthetics, but it’s also a mirror of global politics, economics, and justice.