Navigating Changes in the Fashion Industry: Tariffs, Sustainability and Production Decline
Numerous changes in the fashion industry are impacting consumers — whether they shop online or in person. Learning more about what’s causing upheaval can help you navigate the marketplace as an informed consumer while the industry experiences significant transformation.
The Current State of the Fashion Industry
The U.S. fashion industry is struggling, and 39% of leading experts expect things to get worse over the next year. Potential tariffs and changing consumer preferences are throwing curveballs at clothing manufacturers. You may see higher price tags on your favorite clothes as brands try to keep up with a chaotic, changing marketplace.
Clothing Manufacturers Adapting to Consumer Demand
It’s common for shoppers to have changing demands and for those demands to affect manufactured goods. Think about all the trends you’ve seen come and go, especially in the fashion industry.
Today’s consumer wants more American-made products, which require almost 100% of a textile to come from U.S. manufacturers and processors. People would rather buy clothes made in America for numerous reasons, like supporting small businesses and improving their wardrobe’s carbon footprint.
Sustainability is another top issue for consumers. Polling revealed that 43% of shoppers prefer eco-friendly clothing because they feel concerned about the environment. A demand for sustainable garments may come from more than one place. U.S. clothing has declined in quality as fast fashion companies utilize cheap materials to lower costs and entice consumers to replace their clothes more frequently.
Extra landfill waste and microplastics from cheap products increase pollution while frustrating consumers who want their purchases to last. People may desire sustainably made clothes more than ever because they’ll save money in the long term while helping the planet.
The Impact of Tariffs on the Fashion Industry
Tariffs are taxes on imported goods that companies have to pay when their products enter the U.S. — often resulting in higher prices for consumers. Businesses increase the cost of their goods to raise profits for the tariff fees.
You’ll likely feel the difference at the cash register when you shop for clothing over the next year. Higher price tags on everything from socks to coats mean that you could pay more for restocking essential items or splurging on trendy clothes if tariffs go into effect.
Consumer demand for more American-made goods is one way to counteract the potential increase in costs. If businesses produce clothes in the U.S., they may not be subject to tariffs. However, making that change would require building manufacturing facilities, getting textile makers on board, and creating farming infrastructure to supply things like cotton. The process will likely take time.
Recent Challenges Facing the NYC Garment District
The New York City garment district used to be a foundational part of American clothing manufacturing. The region employed around 323,669 workers in the 1950s but experienced an industry decline in the 1990s. Today, the district employs under 4,000 people.
A thriving district could be a solution to American-made clothing challenges. However, the area is undergoing zoning changes. Real estate developers want to turn the region into residential housing and mixed-use lots. In response, city officials have invested $4.5 million to revitalize businesses in the district, helping small brands stay open.
Tariffs and consumer demand for sustainable products still pose a challenge for smaller businesses in the area. Many may shutter if they can’t manage the increased cost of doing business or change their manufacturing practices to eco-friendly alternatives.
Ways You Can Shop Responsibly and Sustainably
There are still ways you can shop for greener clothing as prices increase. Consider using strategies like:
Prioritizing locally owned businesses.
Researching green brands that make clothing in the U.S.
Saving before going shopping so you can invest in long-lasting clothes.
Shopping secondhand to reduce garment waste.
Hosting a clothing swap with friends as a way to shop for new-to-you items.
Opting for garments made with materials with a lower environmental impact.
Shopping mindfully to avoid clothing waste and an underutilized wardrobe.
Learning better ways to shop could help you navigate the ongoing changes in the fashion industry over the coming year. Take your time and look into the brands you want to support so you know your purchases align with your values.
Challenges and Adaptation in the Fashion Industry
Change is inevitable for big industries. Government policies and consumer demands may affect how much you spend on clothes, but they don’t have to prevent you from wearing things you love. Revise your shopping strategies to navigate potential challenges with ease.
