Fashion’s Trade & Tariff Tracker: Key Updates from May 12 to June 16
Jun 25, 2025
3
min reading
The past months have been an intense lesson in why policy matters, and how quickly it can reshape fashion’s operating reality. The constant changes and unpredictability make it almost impossible for brands, suppliers, and retailers to keep up - or even know which updates are still in effect. (Are they still on? Are they not?)
At World Collective, we know that staying compliant means staying informed. That’s why, as part of our Trade Series, our Policy Team has once again mapped out a clear, chronological breakdown of key tariff-related developments that occurred between May 12 and June 16 — so you don’t have to dig through headlines or parse dense legal briefs.
We’ve also outlined emerging trends and contextual shifts that could directly affect your sourcing strategies, pricing models, and investment planning over the next months.
If you've felt like trade policy is moving faster than your ability to respond, you're not alone. But there’s clarity in context and we’re here to make sure you have both. Keep reading.
On the Radar: What’s Brewing Before the Timeline
Before we break down key trade updates from May 2 to June 11, here’s a quick look at the latest developments still unfolding — deals in motion, negotiations underway, and decisions that could shape the next phase of global trade policy.
Trump expected to sign US–UK trade deal after the G7 Summit in Alberta .
Brussels negotiators hopeful the UK will accept a flat 10% tariff to avoid further “tariff stacking” .
Bangladesh–US FTA agreements remain in ongoing talks.
U.S. Trade Review: Key Fashion & Tariff Moves from May 12 to June 11
JUNE 11: A final trade truce was reached between the U.S. and China following negotiations in London. According to a post by former President Trump on Truth Social, the U.S. will impose a fixed tariff rate of 55% moving forward. (Source: Wall Street Journal, June 11)
JUNE 2: Trump administration is requiring countries to detail tariff rates and potential US investments, after President Trump paused Liberation day Tariffs for 90 days, including China. As the July 9 deadline looms, the administration is pushing countries to list their best proposals. Active negotiations include the EU, Japan, Vietnam, and India.
MAY 30: Leaders in the Fashion Industry (American Apparel and Footwear Association [AAFA] president, Anna Wintour, and Council of Fashion Designers of America CEO) met with Trump’s Chief of Staff to make a case for the fashion industry in the wake of exponentially growing tariffs. Argued about the disproportionate tariff burdens the fashion industry has faced, even before Liberation Day tariffs, so that the average tariff rate on footwear/apparel before Liberation Day was more than 5 times higher than the rate on all other US imports. Fashion only makes up 5% of imports but the share of total duties adds up to 25%. AAFA website notes a “pink tariff” causing a higher tariff burden on women, due to tariffs on women’s clothes being 3% higher than men’s clothes on average, but was not mentioned directly in the letter to President Trump.
MAY 29: Appeals court temporarily reinstated tariffs after the CIT order immediately blocked them. Reasoning was it was “pausing the authority of the lower court’s ruling to consider the government’s appeal, ordered the plaintiffs to respond by June 5, administration by June 9”.
MAY 28: The Court of International Trade (CIT) blocked many of Trump’s tariffs, citing that Congress has constitutional power to regulate international commerce, and that the act he utilized to pass the tariffs, the International Emergency Economic Powers Act (IEEPA) was meant to address threats during a national emergency. Tariffs on auto, steel, aluminum remained in place.
MAY 25: Trump agrees with the treasury secretary that the US does not need to bring textile manufacturing into its borders, stating focus should be on military equipment, chips, computers, and AI development. This is addressed in the letter from the AAFA, stating that large-scale textile manufacturing in the U.S is not feasible.
MAY 26: Trump extended deadline for EU 50% tariffs until Jul 9, 2025 to negotiate a “good deal” in time. After reciprocal rates by the EU were announced, they had been allocated a 20% tariff rate. This temporary pause took the rate down to 10% through July 9.
MAY 21: Murmurings of Bangladesh and US FTA (Free Trade Agreement) talks emerge. Bangladesh Commerce secretary has confirmed they are in negotiations/talks, but no global news outlets have reported on this yet. Relevant as Bangladesh is the second-largest garment exporter in the world, next to China.
MAY 12: US and China agreed to suspend reciprocal tariffs from 125% to 10%.
Trade Turbulence and Its Ripple Effects
Disproportionate Impact on Smaller Retailers
Smaller retailers are disproportionately harmed because they cannot adequately respond to cost increases like larger players can. According to the U.S. Chamber of Commerce 97% of U.S. importers are small businesses, and when “tariffs rise, they face steep costs that threaten their survival.”
For example, when tariffs - such as the recent “Liberation Day” measures - drive up procurement costs, small retailers often have to raise prices, reduce inventory, or even delay deliveries.
According to Alignable, an online platform for small businesses, over 44% of small companies — and 57% of small retailers specifically — expected to see revenue declines as a result of tariffs, based on the firm’s findings from March and April.
In short, these shifts have left SMEs more vulnerable than ever — caught between rising costs and policy whiplash.
“As each day goes by, small businesses are increasingly endangered by higher costs and interrupted supply chains that will cause irreparable harm.” - P. Clark, President and CEO of the U.S. Chamber of Commerce
Luxury Brands Are Less Vulnerable, But Are Also Facing a Slowdown
Luxury brands are naturally in a stronger position than discount retailers, thanks to their higher margins, giving them more room to absorb rising costs.
However, the other side of the coin reveals a more complex reality for the high-end sector. President Trump’s proposed 50% tariffs on EU imports (with a deadline now extended to July 9) are pressuring luxury brands to consider relocating parts of their production to the U.S. — raising critical questions about whether "Made in America" can carry the same prestige as European craftsmanship.
While many luxury houses can afford to absorb short-term costs, they remain deeply protective of their heritage and brand narrative, both of which are tightly tied to Old World provenance.
According to Barron’s, that iconic Hermès Birkin is “about to get pricier” as the company moves to offset tariff impacts — and other brands are likely to follow suit.
As The Wall Street Journal reported, François-Henri Pinault, CEO of the group behind Gucci, Saint Laurent, and Balenciaga, made it clear: “It wouldn’t make sense to me to have Italian Gucci bags made in Texas. It doesn’t make sense to my clients. I can’t explain that.”
China: The Gravity of a Manufacturing Giant
Despite years of pressure, China remains at the center of global manufacturing. Brands and retailers across sectors, including fashion, have repeatedly attempted to shift production to lower-cost countries like Vietnam, Bangladesh, India, and Cambodia. However, the transition has proven difficult to sustain.
It underscores a broader industry truth: China’s infrastructure, supplier networks, and sheer scale remain unmatched — especially for high-volume, fast-moving categories like apparel, footwear, and accessories.
Meanwhile, new regulatory friction added weight to China’s burden. On May 20, the European Union announced plans for a €2 fee on billions of low-value parcels (under €150) — a move aimed squarely at fast-fashion e-commerce giants like Temu and Shein. These platforms, which rely heavily on high-volume, low-cost direct shipping from China, now face mounting pressure from both U.S. and EU trade barriers.
What’s Next: Emerging Trade Signals
AI & Predictive Planning
As highlighted in The Robin Report, brands are beginning to explore AI-driven forecasting and supply chain modeling to navigate tariff volatility, anticipate disruptions, and optimize inventory.
Free Trade Agreements & Nearshoring
A new wave of FTAs, including early-stage talks with Bangladesh, is reshaping sourcing dynamics. Nearshoring is gaining traction as brands look to mitigate geopolitical risk, reduce lead times, and increase control over production.
Evolving Supply Chain Models
Hybrid approaches are emerging: brands are performing high-volume manufacturing steps in China while relocating final assembly to lower-risk or FTA-aligned countries. This “split production” strategy offers flexibility without fully abandoning China’s infrastructure.
Trade Developments & Consumer Outlook
On June 11, a final trade truce was announced between the U.S. and China following negotiations in London. According to a post by former President Trump on Truth Social, the U.S. will impose a 55% tariff rate moving forward (WSJ).
Meanwhile, consumer sentiment in the U.S. is improving. Expectations of future price increases have dropped from 6.1% to 5.5%, according to polling reported on June 13 (WSJ). This shift is being linked to Trump’s temporary pauses on tariffs for both the EU and China — signaling potentially positive news for inflation, given the strong correlation between consumer expectations and actual inflation trends.
Anti-Greenwashing Regulation
Canada is finalizing enforcement for its new anti-greenwashing law. New compliance guidelines were released ahead of the June 20 enforcement date, as announced by the Canada Competition Bureau. This sets a new precedent for environmental marketing claims and legal accountability in North America.
Logistics & Transportation Pressures
The fashion industry is once again grappling with freight delays, port congestion, and carrier bottlenecks, drawing eerie parallels to COVID-era supply chain crises. Tariff shifts and re-routed goods are only adding complexity.
Manufacturing Output & Labor Concerns
As of June 2, UK factories reported a significant slowdown in output due to trade uncertainty and rising input costs — a trend that could spill into other major manufacturing hubs, tightening global capacity and increasing lead time risks.
Researched by Taruna Anil, Policy Assistant at World Collective
Edited by Maria Eugênia Lima, Content & Marketing Intern at World Collective
