President Donald Trump’s escalating clothing tariffs are set to drive up the cost of basic apparel and footwear across the United States, with everyday essentials—like $5 T‑shirts and $10 sock multipacks—bearing the brunt of the increases, trade experts warn.
Tariffs and the Apparel Supply Chain
Since early 2018, the Trump administration has imposed a 10% minimum tariff on imports from all countries and a 145% levy on Chinese-made goods—actions that will ripple through an industry where 98% of US clothing is imported, with China alone supplying 22% of the market. Many of these tariff-driven price hikes will initially fall most heavily on wardrobe staples that consumers purchase throughout the year.
“Basic clothing necessities such as cotton T‑shirts, underwear, and socks will go up in price more quickly because consumers will still need to buy them even as the price increases,” said Sheng Lu, professor of fashion and apparel studies at the University of Delaware.
Basics Hit Hardest
Low-margin, high-volume items are most vulnerable because retailers restock them more frequently, thereby increasing exposure to tariffs on each shipment. By contrast, seasonal or luxury garments, which sell more slowly, allow companies to absorb higher duties over time without passing the full cost to buyers.
Edward Gresser, vice president at the Progressive Policy Institute, noted: “Mass‑market clothes face sharper price jumps than premium brands because markups are lower on cheaper items.”
Wider Economic Impact
A Yale Budget Lab analysis projects that within a year, clothing prices could rise 65% and shoe costs 87%, with long-term increases of 25% and 29%, respectively, simply because reshoring large-scale, low-cost manufacturing to the US is not feasible.
Moreover, apparel already accounted for 26% of all tariffs collected in 2024, despite representing only 5% of imports, according to the American Apparel & Footwear Association. The new duties will squeeze retailer margins on items where profit buffers are thinnest.
De Minimis Exemption Ends
On May 1, the end of the “de minimis” rule—which currently waives duties on packages under $800—will further strain budget‑conscious shoppers. Research by UCLA and Yale economists reveals that 48% of small-parcel deliveries to the poorest zip codes rely on this exemption, compared to 22% for the wealthiest areas.
Margaret Bishop, assistant professor at Parsons School of Design, observed, “Lower‑income households will feel these tariffs most acutely, since they spend a larger share of their income on basic apparel.”
Luxury Segments Less Affected
Luxury goods—often made in Europe—face smaller relative price hikes, analysts say. Brands such as Hermès have already announced measured increases on handbags and scarves to “fully offset” tariff costs beginning May 1, signalling that higher‑end consumers may absorb the changes more easily than those buying mass‑market items.
“The beauty and luxury industries appear insulated from the worst of tariffs,” noted Telsey Advisory Group in a recent report.
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