THE FASHION & BEAUTY INDUSTRY’S NEW PRICE TAG: TARIFFS, SUSTAINABILITY, AND THE COST OF STAYING RELEVANT

As global trade policies evolve, the fashion and beauty industries face a complex new reality. Shaped by tariffs, new legislation, and shifting consumer demand, the current landscape presents significant challenges that require industry players to pivot and rethink their strategies. Kiko Gaspar, a communications strategist with international experience across the fashion, lifestyle, and design sectors, offers his expert perspective on these changes and how they impact brands worldwide.

The fashion and beauty sectors are currently facing a trifecta of challenges. On one hand, rising tariffs on Chinese imports, set in place by the U.S. and EU, will likely drive up costs for companies reliant on overseas manufacturing. With new tariffs, companies manufacturing in China, including heavyweights like Shein and Temu, will be particularly impacted. As tariffs increase, the price of goods — particularly in the fast fashion sector — is expected to rise, driving more consumers toward affordable alternatives.
On the other hand, the growing demand for secondhand fashion is another pivotal trend in the current landscape. With younger, environmentally conscious consumers prioritizing sustainability, secondhand fashion has become popular. New legislation, including the Americas Act, enables resale platforms to thrive by incentivizing recycling and reusing materials, which aligns with the global push toward sustainability.

“The changing landscape of tariffs and legislation is undoubtedly reshaping how the fashion industry operates. As fast fashion faces mounting pressures from rising costs, secondhand fashion is becoming a solution for consumers and brands alike. This is a moment for fashion businesses to pivot and embrace the value of resale,” says Kiko Gaspar, communications strategist and expert in global fashion, lifestyle, and design.

Rising tariffs on Chinese imports have harmed the fast-fashion industry. As new laws tighten restrictions on Chinese imports, companies like Shein and Temu must adjust their pricing models or face reduced margins. This could increase prices for low-cost fashion products, impacting millions of consumers who rely on affordable clothing.

“With tariffs weighing heavily on fast fashion, we’ll likely see a shift in consumer behavior. In response, brands must rethink their strategies to remain competitive in an increasingly cost-sensitive market. For businesses that have depended on Chinese manufacturing, these tariffs represent both a financial strain and a unique opportunity to look beyond traditional production methods,” Gaspar notes.

The government’s growing interest in supporting sustainable fashion practices amplifies this shift. The recently proposed Americas Act would offer significant tax incentives for businesses in the secondhand fashion sector, fostering long-term growth for resale platforms and eco-conscious brands.

At the same time, the industry is increasingly impacted by stricter environmental regulations and rising costs associated with achieving carbon neutrality. In March 2025, the EU introduced a series of supply chain transparency requirements, forcing brands to map and disclose their entire production process, from raw materials to finished goods, with penalties for non-compliance. This level of traceability, while positive for consumers, adds further financial strain to brands already grappling with higher production costs.

As the fast-fashion sector faces growing challenges from tariffs, new legislation, and rising consumer awareness of sustainability, secondhand fashion is gaining prominence. Platforms like ThredUp, Poshmark, and Vestiaire Collective, which have capitalized on the growing demand for affordable, sustainable fashion, are poised to benefit from the market disruption caused by rising tariffs.

“The growth of secondhand fashion isn’t just a passing trend—it’s the future. Consumers are more aware of their environmental impact, and brands must respond to this demand. As tariffs continue to disrupt fast fashion, resale companies are uniquely positioned to meet the modern consumer’s needs while promoting sustainability,” Gaspar reflects.

The rise of AI-driven resale platforms is also reshaping the customer experience. By incorporating advanced technologies into the resale process, brands can ensure better selection, quality control, and personalization—enhancing the shopping experience and attracting new consumers. AI-powered trend forecasting tools are also helping brands anticipate shifts in demand, allowing them to respond with agility and reduce unsold inventory.

At the same time, fashion and beauty brands are under increasing pressure to innovate with circular design principles, using recyclable materials and creating take-back programs to encourage responsible consumption.

As more fashion companies adopt digital tools to streamline operations and adjust to new market dynamics, it’s clear that the future of fashion lies in embracing both sustainability and innovation.

Kiko Gaspar’s deep experience as a communications strategist allows him to see firsthand the impacts these shifts will have on the fashion and beauty industries. With a track record working with global leaders like Vivienne Westwood and supporting Ukrainian creatives on the world stage, Kiko brings a unique perspective to the evolving fashion landscape. As one of the key PR figures named by Harper’s Bazaar Men’s Style, his work reflects his focus on telling powerful stories, shaping brands, and driving positive change in the fashion world.

“These changes represent a new era for fashion—one where businesses must become more agile, conscious, and forward-thinking. Now is the time for fashion and beauty brands to act, pivot, and seize the opportunities created by the challenges we face,” Gaspar concludes.

As global trade policies continue to evolve, businesses in fashion and beauty must be prepared to adapt and innovate. The time for companies to embrace change and become more sustainable, transparent, and agile is now. The fashion and beauty industries have an unprecedented opportunity to shape a profitable future that is also more socially and environmentally conscious.