Fashion for the Earth
Tariffs are Hurting the Wrong Fashion Brands
June 18, 2025
If you’ve opened the news lately, you’ve probably seen the word tariff more times than your own reflection. Tariffs on this, tariffs on that — suddenly, trade policy is the main character. And while it might sound like background noise for economists, these not-so-glamorous headlines are quietly creeping into your closet.
Yes, tariffs are hitting fast fashion giants like Shein and Temu. But they’re also squeezing the very brands trying to make fashion better — the sustainable ones. And if you care about what you wear and how it’s made, this trade war might matter more than you think.
So, what even is a tariff?
In short, it’s a tax on imported goods. When a country imposes tariffs, it makes it more expensive to bring certain products in from abroad — usually in the name of protecting domestic industries. Lately, the US has been cracking down on low-cost imports from China, including a push to close the “de minimis” loophole that lets ultra-cheap goods like Shein hauls and Temu gadgets slip in tariff-free. The result? A shake-up across the fashion industry that’s creating some unexpected winners, plenty of losers, and a few truly ugly consequences.
Let’s break it down.
The Good
These tariffs could achieve something that no sustainability professional has been able to deliver: slow down rampant, senseless consumption. Ultra-fast fashion giants like Shein and Temu rely on lightning-fast, low-cost supply chains to flood the US market with microtrends and $4 t-shirts. If tariffs raise import costs and slow shipping times, this business model starts to crack.
While this is a good thing, it is important to note: these policies were not designed with climate change or labor rights in mind. However, they may inadvertently help pump the brakes on overproduction, textile waste, and carbon emissions by making it harder for these companies to churn out cheap clothes at breakneck speed. If fast fashion stops being fast and cheap — the very factors that make it so appealing — consumers might pull back. These tariffs aren’t the solution to fast fashion, but they might be a speed bump.
In the fashion world, buying less is the most sustainable thing you can do. The second best? Buying second-hand. Economic strain and higher prices pushes consumers toward thrifting, clothing swaps, and rental fashion as a budget friendly, eco-conscious alternative. We saw this in the 2008 recession: about two thirds of US second-hand stores surveyed by the National Association of Resale & Thrift Shops said that their sales increased in 2009.
We are seeing this pattern again. Money is getting tighter, and people are getting thriftier — literally. According to ThredUp’s 2025 Resale Report, 59% of consumers (and 66% of younger generations) say that if new government policies around tariffs and trade make apparel more expensive, “they will seek more affordable options like second-hand.”
The Bad
The bad news: tariffs don’t care how good your intentions are. While fast fashion giants might get tripped up, the brands actually trying to do the right thing will likely face the steepest uphill battle. Sustainable fashion companies, which already operate on tighter margins due to ethical sourcing, fair wages, and lower production volumes, are especially vulnerable.
Unlike ultra-fast fashion brands that can absorb price hikes by cutting corners elsewhere, small and mid-sized sustainable labels don’t have that kind of cushion. They rely on carefully sourced materials, smaller batch production, artisanal skills, and slower, more transparent supply chains — all things that cost more to begin with. Adding hefty tariffs to the equation forces many of these brands into a lose-lose situation: either raise prices and risk alienating customers, or eat the costs and threaten their own survival.
I want to stay true to our values, but the financial pressure is real. It forces small brands like us to make difficult choices — raise prices, reduce quality, or change our approach — all of which go against the kind of brand I want to build.
Yitao Li, founder of independent brand Taottao
Tariffs also don’t distinguish between a $2 polyester shirt made in a factory with poor labor standards and a $150 organic cotton dress made by artisans earning living wages. It’s a one-size-fits-all penalty that ignores the nuances of better fashion business models. In the end, brands pushing for positive change could get squeezed the hardest.
The Ugly
When costs rise and margins tighten, someone always pays — and it’s usually not the CEO. In the global fashion supply chain, that “someone” is often a garment worker. Tariffs raise costs for brands, but instead of cutting into profits or trimming energy use, many companies will look to maintain margins by pressuring their suppliers to lower production costs. This often results in factory owners — who operate on slim margins — reducing wages, speeding up production, or shifting manufacturing to countries with weaker labor protections to meet the lower price demands.
Jason Judd, executive director of ILR’s Global Labor Institute, explained the impact of tariffs on apparel workers and the fashion industry. He uses Sri Lanka as an example, a country that already has a dangerously low minimum wage for garment workers: “More downward pressure on wages after several years of very high inflation will mean — for workers who hold onto their jobs — hungry children and desperate families. The predicament for those who lose their jobs will be worse.” Manufacturers will almost always bargain working conditions and wages to maintain their margins, especially in countries where labor unionizing is suppressed.
History shows garment workers nearly always face the burden in the wake of a crisis. We saw how brutal the trade-off was during the COVID-19 pandemic, when dozens of global brands canceled billions of dollars in orders — many after garments had already been made. They left factories unpaid and workers without wages, severance, or safety nets. Brands prioritized their bottom lines over basic human dignity, and millions of garment workers paid the price.
Tariffs could trigger a similar chain reaction — one where costs rise, compassion disappears, and the most vulnerable people in the supply chain are forced to carry the weight.
In the End
If you’re tired of hearing about tariffs, you’re not alone. But the chaos they’ve created reveals just how fragile and unfair our system really is. Tariffs have stirred the pot, and in the simmer, we can see the cracks: a system that punishes good actors, shields the worst, and sacrifices workers when the math doesn’t add up.
Sure, fast fashion might slow — for a moment. Second-hand might surge — for a season. But sustainable brands are strained, and workers are once again footing the bill. Tariffs aren’t going to fix the fashion industry, and they certainly aren’t going to save the planet. However, they remind us why fashion needs changing in the first place.
You can contribute to meaningful change by supporting Earthday’s Fashion for the Earth Campaign, where we strive to educate consumers on sustainable fashion practices. Check out our How To Shop Sustainably Toolkit and learn how you can make an impact with your shopping choices by signing the Fashion Industry Must Change petition.
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