The 2024 election results will decide how all the buzz from New York Fashion Week will be turned into policy and what direction that policy will take over the next four years. The Council of Fashion Designers of America teamed up with Vogue and many others to march at the beginning of the week to encourage people to vote. While the march was billed as bipartisan, there were signs of bias toward the Democratic party, with attendees such as Jill Biden and Anna Wintour, who paraded a Harris-Walz scarf.
The fashion industry could experience significant domestic and global changes as power shifts in Congress and the White House. Many brands have already stated that with President-elect Donald Trump's proposed new tax tariffs, they will be forced to pass these costs onto their consumers. Michael Schmeid, a senior financial analyst at Kredite Schweiz, stated, “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.” Donald Trump has proposed a 60% tariff on imports from China, a 25% tariff on imports from Mexico, and a 10-20% tariff on imports from all other countries.
Since the election, the following clothing companies have already stated that they will be raising prices due to tax tariffs proposed by Trump:
Nike
- The athletic powerhouse produces a range of products in Mexico, from running shoes to workout gear and athletic apparel. Thanks to the Trump-era tariffs, the cost of Nike sneakers have an estimated price hike—$150 shoes would now cost $187.50.
Steve Madden
- Since the election, Steve Madden stated that the company will be shifting its supply chain away from China, reducing imports, and increasing sourcing from alternatives like Cambodia, Vietnam, Mexico, and Brazil. CEO Edward Rosenfeld stated that this move, planned over several years, is in response to potential disruptions. Currently, over 70% of the company’s U.S. imports come from China, but Rosenfeld aims to cut that share by up to 45%, up from an earlier target of 10%. The shift reflects broader efforts to diversify sourcing and reduce reliance on China amidst global trade uncertainties—resulting in an estimated 13-15% price increase for consumers.
Adidas
- Like Nike, Adidas manufactures some of its footwear and apparel in Mexico, including popular styles like the Ultraboost and NMD sneakers. Due to the Trump administration's tariffs, Adidas Ultraboost sneakers are expected to see an increase—$135 shoes would now cost $168.75.
Levi’s
- Levi’s, famous for its iconic denim, has popular pieces like the classic 501 jeans made in Mexico. Under Trump's tariffs, the cost of Levi’s jeans' are expected to significantly increase—the $79.50 pants would jump to $99.38.
New Balance
- New Balance has a hybrid manufacturing strategy, as in they make some shoes domestically while sourcing others from Mexico and various international locations. Due to the tariffs under the Trump administration, the price of a New Balance 530 will increase—what was once a $100 pair of shoes would now cost $125.
Patagonia
- The outdoor brand manufactures some of its products in Mexico, focusing on its outdoor apparel line. As a result of tariffs imposed during the Trump administration, the cost of a Patagonia puffer jacket will increase—what was once a $240 coat would now be priced at $300.
Some more clothing brands that have already (since election night) confirmed a price increase if Trump’s tariffs are imposed include:
H&M
Michael Kors
American Eagle Outfitters
Tecvoas
As we look toward the fashion industry's future, the 2024 election will be a critical turning point. The potential for new tariffs under a Trump administration could have far-reaching consequences, with companies already signaling price increases due to higher import costs. From Nike to Patagonia, brands that rely on international manufacturing must adjust. As inflationary pressures rise, it’s clear that the fashion industry may face a more expensive landscape in years to come.
While these changes could be disruptive, they also allow businesses to reconsider their global supply chains and pricing strategies. Ultimately, how the next administration addresses trade policies and tariffs will significantly shape the fashion industry's future—both in the U.S. and globally. For consumers, it’s crucial to stay informed and understand how these political shifts could impact their favorite brands and wallets.
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