New Potential Tariffs, How They Will Impact the Apparel Industry

The Business of Apparel

EP 93 - New Potential Tariffs, How They Will Impact the Apparel Industry

In this episode, Rachel is tackling a subject that's been on everyone's minds, tariffs and what that means for businesses AND consumers. We start by unraveling the concept of duty rates, how tariffs are calculated based on the manufacturer's cost rather than the retail price, highlighting how this affects brand expenses and consumer prices. Rachel also touches on the importance of sourcing materials strategically to maintain favorable rates and make informed manufacturing decisions.

We'll explore the challenges of U.S. apparel manufacturing amidst recent tariff announcements and examine the hurdles of domestic production due to limited infrastructure and workforce. Finally, we'll look at strategies for businesses to mitigate these effects of tariffs, such as pre-purchasing materials and planning long-term production needs. By holding inventory or raw goods, companies can help avoid future tariff-related expenses to a degree. While this episode was pre-recorded and information may change by the day, it's important that we stay informed and proactive as we navigate these potential economic changes together.

In this episode, you’ll hear:

-Tariffs are not a new concept, but what exactly are they and how do they affect businesses and buyers?

-Different areas are subjected to different duty rates.

-The challenges of manufacturing in the U.S. is largely due to our infrastructure.

-Ultimately, it's up to the brand whether or not to pass along the additional costs to the buyer.

-What steps can we take now to minimize impact of these new, potential tariffs.

We can’t wait to hear what you think of this episode!

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To visit her website, go to: www.unmarkedstreet.com.