Trump’s Tariffs: 3 Clothing Brands That May Get More Expensive If Trump Wins the Election
Written by
Heather Altamirano
Edited by
Zuri Anderson
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For the last four years, Americans have been hit hard in the wallet, from groceries to housing, due to inflation and pandemic-era supply chain issues. Depending on who takes over the White House next month, it could worsen for consumers.
Former President Donald Trump regularly touts his tariff policy on the campaign trail — a 10 to 20% universal baseline tariff on all U.S. imports and a 60% tariff on goods from China, which would cost American households upwards of $2,600 extra a year, according to the Peterson Institute for International Economics.
“If Trump imposes a universal tariff on imports, we’re looking at higher prices for a lot of goods — simple as that,” Michael Schmied, senior financial analyst at Kredite Schweiz, told GOBankingRates. “Tariffs are essentially taxes on trade, and businesses will likely pass those costs on to consumers. This could drive inflation, making everything from electronics to clothing more expensive.”
Businesses could move their supply chains to avoid the hefty tariff costs, but that would likely have unfavorable ramifications.
“It could disrupt industries and lead to some unintended consequences–like job losses in sectors that rely heavily on imports,” Schmied continued.
Fashion is one industry that Trump’s tariffs would directly impact because many companies manufacture their products in China or use materials from overseas.
Here are three clothing brands that would get more expensive if Trump wins the election.
H&M
Known for its stylish, cheap fashion, H&M has been a staple in malls around the globe, but it could become less affordable since China is one country the company sources from.
“H&M would have trouble with Trump’s tariff regime,” said Jay Soni, founder, CEO and consumer goods specialist at Yorkshire Fabric Shop. “It is known for low-cost fashion, so any higher import taxes would probably increase the price it charged on its products.”
Michael Kors
Michael Kors has become a go-to designer brand for high-end purses, ready-to-wear clothing, and luxury accessories. The company is headquartered in the United States but manufactures mainly in China.
“Since clothing companies are increasingly dependent on Asian factories, a border tax would be disastrous for Michael Kors,” Soni said.
“Their consumers are also accustomed to price drops due to competition from fast fashion companies abroad,” he continued. “If Trump’s policies brought a 30 to 35% price hike, Michael Kors and others wouldn’t be able to keep their foot on the gas because it would become very expensive to buy, and potentially, their products wouldn’t be popular compared to cheaper styles.”
NoNetz
Founded by Cathy Paraggio, NoNetz specializes in clothing for the autistic community, using renewable practices and materials tailored for texture-sensitive individuals.
“NoNetz would be particularly affected by tariffs as we focus on ethical practices and unique materials,” Paraggio explained to GOBankingRates. “With Trump proposing a 10 to 20% import tax, we anticipate significant retail price increases and transit cost increases that could impact consumer choices.
“For instance, our boys’ lines, currently priced at $40, could rise to $48. Additionally, our USA-made boys’ line, priced at $45 currently, would become unaffordable at $58 if we had to import all our fabric, especially given the rising labor costs in the U.S.”
Although Paraggio doesn’t source anything from China, the proposed tariffs could threaten her business and many others.
“Our sustainable athleisure lines, knitted on-demand in NYC, rely on yarn sourced from highly-certified farms outside the country,” she said. “With yarn prices likely to increase, our current margins would be eliminated, forcing us to reconsider producing these lines altogether.”
The tariffs are bad news for the overall retail sector, but besides concern over prices for NoNetz, Paraggio is worried about eco-friendly fashion companies.
“The potential price increases due to tariffs could greatly influence consumer behavior, particularly in the sustainable fashion sector,” she said. “The demand for eco-friendly products may clash with rising costs, and during uncertain economic times, consumer priorities could shift away from sustainability.
“Tariffs could not only inflate prices but also stifle the growth of sustainable fashion, making it harder for consumers to choose eco-friendly options.”
Final Take To GO
If Trump is reelected, experts and business leaders predict many clothing companies that manufacture outside the U.S. will be affected by his proposed tariff policy and will pass the cost down to the consumer.
“The economy could slow down as consumers and businesses adjust to these higher costs,” Schmied said.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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