Page 26 - The Katten Kattwalk - Summer 2025 - Issue 29

A Tax on Fashion:

Can Tariffs Slow Down the

Fast Fashion Industry?

By Chloe Crissman

n the age of the “I want it cheap, and I want it subject to a duty rate of 30 percent of their value or
now” consumer mentality, fast fashion brands $50 per item, depending on which cost is greater.
primarily based in China have established and
Imaintained dominance in the retail market. Impact on Fast Fashion
According to US Customs and Border Protection The new tariffs were expected to slow the fast
(CBP), the United States imported $66 billion in fashion industry by eliminating low costs, the integral
low-value packages in 2023. Additionally, between characteristic that primarily attracts consumers.
2018 and 2021, However, while several
67.4 percent of de Chinese-based fast
minimis shipments fashion brands have
came from China increased their prices,
and Hong Kong. the definitive demise of
fast fashion is unlikely.
However, now that
President Donald While the market
Trump has signed shows that consump-
an Executive tion tends to decrease
Order imposing when prices rise, this
“reciprocal” tariffs behavior is largely
on dozens of foreign attributed only to the
trade countries younger demographics.
and eliminating For most other
the duty-free de customers, when
minimis exemption fashion prices rise,
for imports — which would have allowed up to $800 consumption patterns largely do not decrease despite
in goods per day per person to be imported without price sensitivity. According to Forbes, “behavioral
any imposition of tariffs and administrative fees — change rarely happens purely through economic
the fate of fast fashion is uncertain. friction alone.” Furthermore, in order to avoid these
tariffs, companies have redirected production to
As a result of these tariffs, packages sent from other countries with lower tariffs and labor costs,
China valued at or under $800 that would otherwise such as Vietnam, Cambodia and the Philippines.
have qualified for the de minimis exemption are now

26 katten.com/fashionlaw