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You are at:Home»Fashion»Chinese Factories React as Trump’s 145% Tariff Shakes Fast Fashion
Fashion

Chinese Factories React as Trump’s 145% Tariff Shakes Fast Fashion

April 18, 20253 Mins Read
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Chinese factories brace for impact as Trump’s 145% tariff targets fast fashion.
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The future of global fashion’s supply chain hangs in the balance as US President Donald Trump enforces new trade tariffs on Chinese imports. The administration raised the tariff rate from 104% to 145% after China responded with its own countermeasures, leaving both brands and consumers facing higher costs.

Chinese e-commerce giants like Shein and Temu wasted no time warning customers about looming price hikes, expected by the end of April. Both platforms reassured shoppers they had stocked up on inventory to minimise disruptions, yet neither could offer a long-term solution. The White House excluded China from a three-month tariff pause offered to other countries, escalating the standoff even further.

Direct-to-Consumer Channels Gain Traction Amid Uncertainty

On top of the tariff increases, the US is moving to scrap the “de minimis” tax exemption. This rule had allowed imports valued under $800 to enter duty-free, making it a key cost-saver for platforms like Temu and Shein. Once revoked on May 2, every small parcel from China will face heavy duties, pushing prices even higher.

Faced with this pressure, Chinese factories have begun shifting strategies. Many have turned to TikTok to reach American consumers directly. Viral videos — like the one posted by @lunasourcingchina — claim to link buyers straight to manufacturers, offering goods at lower-than-retail prices. However, questions about credibility remain, especially after claims that some suppliers were not officially linked to name brands such as Lululemon.

Simultaneously, platforms like DHgate and Taobao have surged in popularity. Both apps have climbed into the top five on Apple’s US App Store, as more consumers seek to bypass traditional retail markups by ordering directly from China.

Fast Fashion Faces a Critical Crossroads

As American consumers grapple with inflation and reduced purchasing power, many are reconsidering their shopping habits. The tariff battle has exposed the fragility of the fast fashion model, which often relies on cheap, offshore manufacturing. It has also accelerated a trend where buyers are cutting out retailers altogether to deal directly with suppliers.

For e-commerce giants like Shein and Temu, the moment has triggered fresh scrutiny over sustainability, overproduction, and ethical sourcing. For consumers, it marks the beginning of a shift toward factory-direct shopping — a version of direct-to-consumer that bypasses both brands and retailers.

The full impact of Trump’s aggressive trade stance remains to be seen. But one thing is clear: these new tariffs have already reshaped the future of fashion retail, consumer behaviour, and global supply chains.

Chinese E-commerce Chinese Factories De Minimis Policy Fashion Economy Fast Fashion Global Trade SHEIN Temu TikTok Suppliers Trump Tariff US Tariffs
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