[ad_1]
Toronto – When Nina Kharey wakes up every morning, the first thing she has to do is search online for U.S. President Donald Trump, hoping that the global trade war he triggers is dissipating.
Most of the time, her hunting was disappointing.
“It’s a lot of uncertainty right now,” said Calgary designer Kharey. “I wake up every day now with anxiety.”
Due to its global nature, it is similar across the fashion industry: materials, buttons, zippers and the twists and turns of Asia that are more commonly found in tariffs, and then turned into clothing or sent to North America there. The Weblike nature of the apparel supply chain, which can put Canadian brands under tariffs if they ship the goods directly from foreign partners to the United States for manufacturing or distribution.
In addition to Canada, Trump imposes tariffs on most other countries, including European Fashion McCas France and Italy, as well as places with lower labor costs, easy access to textiles such as Bangladesh, Cambodia, India, Indonesia, Malaysia, Pakistan, Turkey and Vietnam.
Most of these countries were hit by different double-digit tariffs before they were recently granted 90 days of probation and suffered at least 10% of the liability for the time being.
Powerhouse China, a clothing-producing powerhouse, suffered 145% tariffs from the unraised United States and sent 125% of the tax back.
“I have a lot of colleagues in the fashion industry, and many of them do make products in China and it’s hard to hear their struggles,” Kari said.
“Biger people, they’ll find a way to solve this problem. It’s hard for them, but now it’s a small business and it almost feels like a pawn.”
Daniel Baer, a partner at Canadian consulting firm EY, said clothing companies of all sizes are dealing with products from countries that tariffs attract.
For many, this means rethinking where they come from, where the clothing is made and the route products that provide them to shoppers.
“However, these types of changes are not changes you can make in the flick of the switch or overnight,” he warned.
Kharey knew that re-invented production was time-consuming, as Folds recently moved production from Canada to Tunisia, a 28% tariff from the United States until Trump paused for 90 days on duty and replaced that duty with a 10% fee.
Even if transportation from Tunisia to Canada is not affected by these tariffs, Kharey believes the folds will not be unscathed.
“The cost in Tunisia is likely to increase, especially since one of their biggest major exports is textiles, and that’s where we are,” Kari said.
“We have to juggle, do we keep the price where we are, see how things are going or how we are going to raise our price?”
Currently, she is not hiking prices.
Canadian fashion designer Hayley Elsaesser is also not a fashion designer who runs a self-proclaimed label.
She said in an email that the company is “doing everything we can to avoid” prices because “as inflation and the cost of living rises, it’s something that has a deep impact on our customers and we always know something about it,” she said in an email.
Bell believes clothing brands that deal with trade tensions will eventually have to transfer the costs of the tariff war to consumers, especially if Trump follows his promise, which promises to lift the minimum exemption on May 2. This legal mechanism allows many goods worth less than $800 to be paid without paying responsibilities.
Many clothes have avoided immediate increase as their spring and summer stocks are already in hand and are placing orders in the fall. That could mean higher prices will return to shopping in time, Bell said.
By then, consumers’ consumption capacity may even be lower than they are now.
Its current level of frustration has worried Elsaesser, who calls it the “maximum impact” that her business has seen.
“We have clients all over the world and there is a lot of attention and uncertainty about how things change,” she said.
When consumer confidence declines, Bell said shoppers tend to trade it into more affordable brands, seeking more discounts or buying at all without discretion.
While parents may not have the option to avoid buying more than clothes for children, adults may decide to stick to the seasons in the closet to give the retailer a trade-off.
“Can I wear two or three or four seasons? Of course, I can.” Bell said with an example.
“I want to wear two or four or four seasons? No, because it will be outdated…but nothing can stop me from doing this because it is at the discretion.”
This report by Canadian media was first released on April 15, 2025.
Tara Deschamps, Canadian media
[ad_2]
Source link
