The Business of Fashion

Hi this is Imran Amed, welcome to my weekly letter. Welcome to the new world order. The fashion industry is still reeling from President Donald Trump’s “Liberation Day” announcement on Wednesday of new US tariffs that have global fashion brands, manufacturers and emerging businesses around the world grappling with how to respond. Trump reportedly scheduled the announcement on April 2 to avoid it being perceived as an April Fool’s Day joke. But make no mistake, this barrage of tariffs is a foolish, misinformed attempt at economic nationalism which will harm US consumers and possibly lead to a recession. No one expected the tariffs targeted at fashion to be quite as high or as sweeping. As the US imports more than 98 percent of its clothing and about 99 percent of shoes, virtually every fashion item sold in the country will be hit with additional duties, raising prices for consumers and contributing to further inflationary pressures. Goods from Vietnam will be subject to a 46 percent tariff. Cambodia will have a 49 percent duty, Bangladesh will have 37 percent duty, and China is subject to an additional 34 percent tariff on top of already high existing duties. This has pummelled the stock prices of US companies like Nike, PUMA Group, Ralph Lauren, PVH Corp., Tapestry and Capri Holdings Limited which make clothes and shoes in these key fashion manufacturing hubs, but also international companies including Adidas, H&M and Richemont, which is facing a 31 percent tariff on watches manufactured in Switzerland. Independent designers and brands will feel the hit too. While some American designers make clothes in the US, they usually source their fabrics and textiles from abroad. “This will affect everyone from the lowest price points to the highest of the high,” wrote the American designer Sergio Hudson on BoF’s Instagram post announcing the tariffs. “We produce all in the USA, but fabrics and materials come from everywhere. There is almost zero fabric production in the US. Most fabrics come from Italy, almost all silk comes from Asia. This is very bad.” Read my full letter here https://lnkd.in/eAi9xB78

Some experts saw Trump's election in November as potentially boosting luxury sales, as investors noted the correlation between tax cuts, a strong stock market and luxury spending. Not to mention, the cultural shift: Trump’s high-octane lifestyle and unabashed flaunting of wealth and power were seen as having the potential to provide a boost. But Wednesday’s more drastic-than-anticipated tariff announcement rocked the industry. Circumstances still may change, particularly after negotiations between affected regions and industries ensue — but just about every fashion item sold in the country will be hit with additional duties, as the US imports more than 98 percent of its clothing and about 99 percent of shoes, luxury items included. And that post-election optimism is gone: US stocks plunged after the tariffs were unveiled, and consumer confidence, already at a post-pandemic low prior to Wednesday, is headed into uncertain territory. Read more https://lnkd.in/gCu7f9iM

There’s no escaping the import duties, which were far more wide ranging and severe than anticipated. After the initial panic subsides, the hard work of adapting to the new regime begins, writes Imran Amed. Sign up to get the full briefing in your inbox each Saturday, as well as a digest of The Business of Fashion's top stories across luxury, beauty, retail and sustainability this week.

- Key career moves from this week - Victoria Beckham names Sybille Darricarrère Lunel as CEO YOOX NET-A-PORTER’s chief executive Alison Loehnis to step down Willow Lindley named style director of WSJ Magazine Vanity Fair editor-in-chief Radhika Jones to step down Daniel Lalonde named CEO of Fiskars Group’s Vita division

The industry is scrambling to adjust to the shockwave of new import duties announced by President Donald Trump on ‘liberation day.’ Many of fashion’s biggest manufacturing hubs are facing the highest tariffs. Much remains uncertain. Trump’s mercurial approach to policy means many hold out hope that these tariffs won’t stick, or at least not in such a severe form. Hard-hit countries are figuring out whether to negotiate or retaliate. Still, it’s hard to understate how severely the new tariff regime could affect the fashion industry. More than half of the clothes sold in the US each year are made in China, Vietnam or Bangladesh. If the tariffs go ahead as announced, imports from these three countries will face duties of 54 percent, 46 percent and 37 percent respectively. Brands have a few different options to navigate these swingeing changes to trade economics. None of them are particularly good. Read the full story by BoF's Sarah Kent https://lnkd.in/ejD_A5ar

For its Summer 2025 campaign, Saint Laurent commissioned the renowned artist Francesco Clemente to create a series of portraits, capturing the essence of actors Zoë Kravitz and Isabella Ferrari, as well as models Penelope Ternes and Ajus Samuel.

Over the last decade, dozens of brands, from H&M and Bloomingdale's’s to Banana Republic and Burberry, have dabbled in renting out the clothes they sell in their stores. Today, the number of major retailers that do so is in single digits, and falling fast. Read more https://lnkd.in/gksyZXCy

Most brands that launched fashion rental services have quietly shut them, but the concept lives on in other formats. Read more https://lnkd.in/gksyZXCy

AQUAZZURA opens its first bar at Hotel de Russie, a Rocco Forte Hotel in Rome, marking the brand’s entry into hospitality.

Today, The Business of Fashion is delighted to reveal the all-star jury of top industry leaders for The Business of Beauty Global Awards 2025, honouring the entrepreneurs shaping the future of the beauty industry. ▪️ Ali Goldstein, president of mergers and acquisitions, L'Oréal Groupe ▪️ Carolyn Bojanowski, executive vice president of merchandising, SEPHORA ▪️ Robin Tsai, general partner, VMG Partners ▪️ Marianna Hewitt, co-founder, Summer Fridays ▪️ Isamaya Ffrench, creative director, makeup artist and founder of ISAMAYA BEAUTY ▪️ Priya Rao, executive editor, The Business of Beauty  ▪️ Imran Amed, founder and CEO, The Business of Fashion The Business of Beauty Global Awards seek to connect high-potential beauty entrepreneurs with industry leaders, retail partners and investors who can help them take their businesses to the next stage of growth. This year, we are introducing two application tracks recognising beauty founders at different stages of their entrepreneurial journey: Emerging and Breakthrough. To apply for The Business of Beauty Global Awards and for more information, click here https://lnkd.in/euJcMGUt Applications close Friday, April 11, 2025 at 5pm EST.