New York, NY – With the back-to-school season quickly approaching, American families are bracing for the impact of potential tariffs that could significantly increase the cost of children’s clothing and shoes. The American Apparel & Footwear Association warns that if President Donald Trump’s proposed tariffs on leading exporters are implemented, consumers can expect to see higher prices on items like sneakers, jeans, and T-shirts. The majority of clothes and shoes purchased in the U.S. are imported, with a significant portion coming from Asian countries.
The tariffs imposed by the Trump administration target countries like China, Vietnam, Cambodia, Indonesia, and Bangladesh, setting import tax rates as high as 54%. These increased costs are expected to trickle down to the consumer, leading to price hikes for popular brands like Walmart, Gap Inc., Lululemon, and Nike. Industry groups like the American Apparel & Footwear Association and the Footwear Distributors and Retailers of America have provided estimates on the potential price increases that could affect American families, particularly lower-income households.
Companies in the fashion industry have been working to diversify their sourcing away from China in response to trade tensions and escalating tariffs. Many have shifted production to other Asian countries like Vietnam, Cambodia, Sri Lanka, and Indonesia. However, the prospect of reviving the American garment industry poses challenges, as the U.S. lacks skilled labor and domestic sources for the materials needed to manufacture clothing and footwear on a large scale.
The potential price increases in apparel come after three decades of stability in clothing costs for U.S. consumers. While economists attribute this trend to free trade agreements and offshoring to countries with lower labor costs, the looming tariffs could disrupt this pattern. Retailers with strong negotiating power, limited exposure to Asian sourcing, and recognizable brands may fare better in the face of these challenges, while others like Gap Inc., Urban Outfitters, and American Eagle Outfitters could struggle.
As consumers prepare for possible hikes in clothing prices, analysts predict that tariffs could end up effectively functioning as a sales tax that disproportionately affects middle and lower-income individuals. The implications of these tariffs extend beyond the fashion industry, impacting the broader economy and potentially widening the wealth gap. With uncertainties looming around the future of apparel sourcing and production, American families may soon be faced with navigating a new landscape of higher prices and shifting supply chains.