4/8/2025 | This week in fashion and policy: From tariffs shaking up major brands to digital models reshaping campaigns, the intersection of economics, technology, and ethics continues to challenge the industry.
Impact of New U.S. Tariffs on Fashion Brands
The U.S. administration imposed substantial tariffs on imports from various countries, affecting the fashion sector profoundly. Major brands like Nike, Gap, and Ralph Lauren experienced stock declines of up to 30%. The industry is concerned about increased consumer prices and potential company closures. The National Retail Federation and American Apparel and Footwear Association have warned of dire consequences, including job losses and reduced consumer confidence.
Profit Forecast Reductions for Major Apparel Companies
Citi analysts downgraded earnings forecasts for companies such as Levi Strauss, Ralph Lauren, and VF Corporation. The escalating tariffs and a weakening macroeconomic environment are expected to increase costs, which these brands may struggle to absorb or pass on to consumers without affecting demand.
Potential Boost for Slow Fashion Amid Trade War
The elimination of the “de minimis exemption” on imports from China and Hong Kong could benefit the slow fashion industry. Fast fashion retailers like Shein and Temu, which relied on this exemption, now face higher costs. In contrast, resale and sustainable fashion platforms such as ThredUp and The RealReal, which source inventory locally, remain less affected and may gain a competitive edge.
Trump Officials Quietly Move to Reverse Bans on Toxic Forever Chemicals
The Trump administration is discreetly working to reverse various state-level bans on toxic chemicals, specifically targeting PFAS, known as “forever chemicals,” and other hazardous substances found in everyday consumer products. These bans currently limit exposure to harmful chemicals linked to serious health conditions including cancer, hormonal disruption, and reproductive damage. The Environmental Protection Agency (EPA) is altering chemical risk evaluation processes, which could preempt well-established state laws such as California’s Proposition 65 and recent asbestos restrictions. This regulatory rollback would enable continued production of items containing small amounts of harmful substances by assessing each use case individually rather than broadly identifying chemicals as risks. Critics warn this approach downplays cumulative exposure risks and undermines consumer safety.
H&M AI Models
H&M is integrating artificial intelligence (AI) to create digital replicas of 30 models for use in social media and marketing campaigns. While the company asserts that this initiative will not replace human models and that they will be compensated similarly to traditional licensing agreements, industry professionals have expressed concerns about potential job displacement and ethical implications. Critics argue that relying on AI models could diminish the human element in fashion and perpetuate unrealistic beauty standards. Additionally, there are apprehensions regarding fair compensation and the risk of exploitation of models’ likenesses.
Want to dive deeper into these stories? Check out the latest episode of Clothing Brief Live from Clothing Coulture, where we unpack the ripple effects of these changes across the industry.