In Donald Trump’s first 100 days (back) in the Oval Office, he’s hired Elon Musk, carried out deportations and proclaimed himself a candidate for the next pope. He’s eliminated diversity, equity, and inclusion efforts, defended his Defense secretary for leaking classified military attack plans and renamed the Gulf of Mexico. And of course, there are the tariffs — taxes on imported goods believed to, and I’m paraphrasing, bring back American manufacturing and create jobs.

On April 2, 73 days into this second term, the administration celebrated its “Liberation Day,” when 25% import tariffs on Canada and Mexico took effect, and announced reciprocal tariffs on a range of U.S. trading partners. So, how’s it going? Well, here’s the latest: The U.S. economy shrank 0.3% in the first quarter of 2025, the first negative reading since 2022, according to an initial measurement released on April 30 by the Commerce Department.

Much has been said (and certainly written) about how these tariffs are set to impact the fashion industry, and for good reason. In fashion, which is famously reliant on global supply chains, tariffs are more than just a line item on a government budget; they escalate the cost of materials and finished products and drive up retail prices to cover the difference. They have real-world implications on the apparel brands from which the American people shop every day — especially the smaller, independent labels Fashionista has been known to cover for decades.

Most brands, regardless of size, outsource some aspect of their supply chain to other countries renowned for their craftsmanship, including China, India and Italy, where production costs are often lower and quality is higher. Without having to make hefty investments in their own manufacturing infrastructure, scaling is easier, too. And even the brands that do manufacture in the States often source materials elsewhere. So for the U.S.’s growing faction of indie labels, tariffs have significant financial repercussions, requiring strategic adjustments, operational restructuring and some very tough decision-making. And it’s happening already.

“Although we manufacture solely in the U.S. and buy our fabrics from U.S. textile suppliers, the fabrics are imported from around the world,” says Inga Beckham, co-owner and chief financial officer of womenswear brand Sergio Hudson.

Since launching the label to immediate acclaim in 2016, Sergio Hudson, the designer, has built a razor-sharp reputation for his eponymous brand’s core lineup of monochromatic separates, corseted tailoring and sharp suiting. Each collection is wearable and practical, yes, but purely luxury — in both production and ultimately, in price.

“We line most of our garments in silk, and we’re aware that silk is produced in Asia,” says Beckham. “We’ve already seen an increase in cost from our current suppliers, citing the tariffs as their primary reason. This will inevitably increase the cost of the garments.”

I ask Beckham if the brand would — at any point — consider making changes to its supply chain, but it’s not an easy, black-or-white problem. The answer isn’t black-or-white, either.

“We won’t be changing our manufacturers,” she says, “but we will have to consider the possibility of sourcing fabrics in other countries or from other vendors.”

Elsewhere in the luxury sector, New York-based womenswear designer Tanya Taylor is working to navigate the continued impact of the Trump administration’s tariffs and considering multiple tactics in response. This includes, she says, “counter-sourcing raw materials to reduce our cost, diversifying our factory base to have less reliance on countries who were hit the hardest and increasing prices as thoughtfully as we can.”

Experts attest, there will be financial repercussions for brands and consumers alike. The Yale Budget Lab estimates that tariffs are poised to cost the average household $3,800 in higher prices this year. A top Federal Reserve official has warned that inflation could surge to 4.5% this year, too, up from 2.8% currently. Not even Amazon, which saw founder Jeff Bezos cozying up to Trump following his reelection, is immune to the fallout; White House press secretary Karoline Leavitt recently slammed the mega-retailer after Punchbowl News reported that Amazon (which recently launched a shop with Saks Fifth Avenue) will roll out tariff pricing that displays “how much Trump’s tariffs are adding to the price of each product.”

It’s impacting Taylor’s brands, too. The company’s priority has always been its customers, she says, and through that lens, it’s been able to hold prices on key items constant for several years. It’s different now.

“The tariffs will have a profound impact on margin and as a result, we have no choice but to increase prices on select styles,” says Taylor, who also designs a new brand called Delphine, in addition to her namesake line. “We believe customers are understanding of the situation, but are also concerned that price increases during a time with waning consumer confidence could impact revenue.”

Beckham is skeptical, she says, that Sergio Hudson will be able to maintain its luxury standards without price increases. It’s a game of dominos she doesn’t want to play: If agreements aren’t made and tariffs continue, the brand’s textile vendors may raise their prices even more, leaving Sergio Hudson no option but to raise theirs.

“The financial repercussions are grave,” says Beckham. “We’re a self-funded, independent company. We’ve climbed this ladder slowly, but steadily and are continually faced with hurdles in the fashion industry. We’re in the luxury category and we can’t compromise our clients by offering sub-standard textiles or garments.”

There are other, albeit less practical solutions out there, at least in theory. Brands could look to absorb the tariffs internally by reducing operational costs, perhaps via something like layoffs.

But it’s not just the actual, physical tariffs that are wreaking havoc throughout the indie fashion community. Erin Ryder, co-founder of accessories brand Cesta Collective (which specializes in basket bags handwoven in Rwanda and finished in Italy), confirms the unpredictability itself has been just as harmful. And this volatility, driven by ever-shifting policies, makes thoughtful, long-term decision-making nearly impossible.

“We’ve built a global supply chain deeply rooted in craft and intentionality,” says Ryder. “Dismantling that infrastructure due to policies that might change again in a few weeks or months, is not only risky — it’s fundamentally at odds with the values upon which our brand was founded.”

Would any reasonable supply chain expert recommend that a small-scale fashion label take this as an opportunity to wholly restructure its supply chain? Surely not, and still, many are experiencing what Nick Benson, CEO of product innovation and manufacturing platform Atelier, describes as “panic-driven reshoring,” where brands rush to relocate production back to the U.S. without fully grasping the logistical challenges involved. This reactionary approach can lead to additional issues, like more — yes, more — price increases.

Cesta Collective, in which Meghan Markle became an investor last year, learned this from the start, the hard way. Ryder explains that at launch, the brand’s original vision was to finish its baskets in the U.S., partnering with dozens of production teams across the country. But that’s where the challenges set in.

“We consistently faced countless quality control issues and a lack of proficiency in the finishing techniques we were seeking,” she remembers. “The specialized skills and infrastructure we require simply aren’t available domestically at scale. Building that capacity from scratch would demand substantial time and resources — luxuries small businesses like ours can’t afford, particularly in today’s economic climate and in an industry as fast-paced as fashion.”

Benson proposes an alternative, called “multi-shoring,” wherein retailers utilize multiple locations for production, often in different countries, to diversify their supply chain and reduce risk. A classic example here is maintaining one supply chain specifically for the domestic market while simultaneously utilizing another for international sales. This, he says, is where the industry’s most forward-thinking brands are focusing, and already have been for some time.

“What’s fascinating is that brands, at the executive, board and shareholder level, have been discussing supply chains and their impact on competitiveness for the last few years,” says Benson. “These conversations have led to half-measures and little impact. The current moment is forcing a focus on operationalizing a solution. The most agile brands are using this moment to create a structural competitive advantage rather than just reacting defensively.”

For indie fashion brands, it may seem like the stakes have never been higher. And that’s because in many instances, they haven’t. Will labels be forced to compromise on quality or risk alienating their loyal customers? Unfortunately, there’s no right answer. But there is community.

“Although we’re truly suffering due to the uncertainty of the climate we’re in,” says Beckham, “we’ll continue to work closely as a team and figure out ways to pivot.”

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