INSIDE THE FASHION INDUSTRY – Supply Chain Hiccups and How Emerging Designers Can Overcome Them

Okay, we all know the new US tariffs have hit everyone hard. But let’s admit it, tariffs are just one of the many hiccups fashion brands can encounter. The truth is, fashion businesses constantly face challenges during product development, production, marketing strategies, and budgeting. And when you’re an emerging designer, these issues tend to sting even more, especially where it hurts the most: your pocket! This is particularly true when we’re talking about tariff-related hiccups…

U.S. emerging designers are facing unprecedented turbulence. A confluence of newly enacted tariffs and policy shifts has transformed supply chains overnight, demanding urgent strategic pivots from brands operating under tight budgets and timelines. 

The Tariff Shake-Up and Its Impact

• "Liberation Day" Tariffs: In April 2025, the U.S. government launched sweeping "Liberation Day" tariffs, instituting a universal 10% duty on all imports, plus substantial additional rates targeting major apparel producers: 54% on China, 46% on Vietnam, 37% on Bangladesh, 29% on Pakistan, and 20% on the EU, among others (The Guardian, Vogue Business Business & Human Rights Resource Centre). With over 98% of U.S. apparel being imported, these changes sent shockwaves through fashion supply chains ( The Guardian).

• Average Tariffs Hit Multi-Decade Highs: By spring 2025, the average tariff on U.S. apparel imports soared to approximately 20.1%, the highest in decades ( Inbound Logistics). Tariffs on Chinese goods briefly surged to 145%, before temporarily easing to 30%, yet still adding tremendous cost pressure ( SolvoyoReuters).

• The End of the De Minimis Rule: The long-standing de minimis exemption, allowing imports under $800 to bypass tariffs, was suspended first for China and later globally, eliminating a vital cost-saving channel for small designers and online-focused brands ( Vogue Business, Bleckmann). This removal could double apparel-related tariff costs from $13 billion to $26 billion annually (Vogue Business).

Impact on Emerging Designers

Smaller labels are particularly vulnerable. With limited capital and bargaining power, the sudden influx of duties, compliance overhead, and logistics backlog jeopardize production viability and profitability ( Marie Claire, Vogue Business, FASH455). Women-led and independent brands are disproportionately struggling to absorb or offset cost increases ( Marie Claire).

Strategies for Emerging Designers: Navigating the New Normal

Here are practical strategies to help emerging designers mitigate cost and delay while protecting product development:

1. Diversify Sourcing & Reduce China Dependency

   • Shift to countries like Vietnam, Bangladesh, India, or explore near-shoring options (Mexico, Central America) to reduce exposure to high Chinese tariffs (FASH455, Reuters, Bleckmann, Anthesis).

     
     

   • As seen with Ralph Lauren, maintaining a geographically diversified supply base enhances agility ( Bleckmann).

     
     

2. Nearshoring & Split-Shoring Production

   • Combine overseas production with US or Western Hemisphere-based manufacturing to balance cost, turnaround, and tariff risk ( Bleckmann, Anthesis).

     
     

   • Domestic production enables tighter quality control, faster restock cycles, and agile adjustments, especially useful for small runs or prototypes.

PS: domestic production is my main recommendation! Smaller MOQs, easier quality control, timeline is usually shorter… cost wise is certainly more expensive, however it is more effective during times of high import risks.

3. Lean, Flexible Production Models

   • Design smaller, modular product runs to reduce overproduction risk and exposure to price fluctuations.

     
     

   • Use supplier consolidation to deepen partnerships with a few trusted manufacturers, possibly allowing them to share some cost burdens in exchange for reliability and volume ( Anthesis).

     
     

4. Leverage AI & Predictive Analytics

   • Utilize AI-powered tools for scenario planning, tariff impact modeling, inventory optimization, and route planning ( Solvoyo).

     
     

   • These tools help forecast cost trajectories and test sourcing alternatives quickly, saving both time and money.

     
     

5. Digitize Customs & Compliance Processes

   • Automating customs documentation and duty calculations through integration with 3PLs or customs consultants reduces administrative burden and delays (Bleckmann).

     
     

6. Enhance Supplier Scorecards & Risk Assessment

   • Use sustainability and performance metrics to evaluate suppliers. Incorporate environmental, labor, and compliance factors into decision-making to safeguard supply reliability ( Anthesis).

     
     

7. Be Transparent with Consumers

   • Proactively communicate the reasons behind any pricing changes or delays to maintain trust and brand loyalty ( Bleckmann).

     
     

   • Consider offset strategies like exclusive loyalty perks or bundled offers to soften the impact.

     
     

Every week, I talk to designers struggling with supply chain delays, rising costs, and unpredictable timelines. These are real challenges hitting brands everywhere right now. But there are ways to keep your production moving. I’ve helped clients build resilient supply chains that can handle these ups and downs, and I’d love to help you too. Book a free call through the link below: https://go.oncehub.com/BarbaraSessim