RUSH TRANSCRIPT:
>> Okay, so when we talk about tariffs, usually we‘re talking about steel. Aluminum I don‘t know whiskey. I want to go off script for a bit because this trade war is probably at this point hitting your closet. And fast fashion could soon be not so fast and not so cheap. Joining me now to talk about this contributing writer for vogue business, Jessica binns. Jessica, we were talking so much about the potential for tariffs in November December. How has that actually played out for the retail industry in these first couple of months of 2025?
>> Well, good morning, audie. Thank you so much for having me on. Of course, on the campaign trail, we did hear a lot about tariffs and Donald Trump. Good to his word. On day one. He made tariffs a reality. We‘ve seen two rounds of 10% tariffs against Chinese imports. And we‘re currently looking at a potential reinstatement of 25% tariffs on goods from Canada and Mexico, both of which have been suspended twice before. Currently, most goods compliant with the usmca or the new nafta are not subject to these tariffs. But of course, that could change in the near future. And also the European Union is a target. U.S. officials are considering further trade action against the EU bloc, but nothing at this time. And so tariffs really are showing up across a range of goods. And I think consumers are starting to feel those effects right now.
>> It‘s interesting because I know retailers businesses for consumer goods, they basically have like people who just focus on tariffs to figure out ways to get around them. You know, whether that‘s like taking away a zipper or putting an extra little scrap of silk, whatever it is. When we heard from shein executive chairperson on this back in January, here was the response.
>> Affordability is is the anchor is one of very important things. Yes, but it‘s the whole package of it. It‘s a value for money. And as long as all of those policies are applied or new rules are applied equally and fairly to all that, we can continue to base on these same principles and continue to deliver the best products for our customers.
>> Can you talk about the struggle for some of these retailers? I know forever 21 actually filed for bankruptcy. I mean, this is their second time in six years, so it doesn‘t necessarily have to be only tariffs. But how is it like how are they trying to counter this.
>> So it‘s a great question. And it‘s a huge issue. I was just looking at a pwc analysis that estimates that tariffs against consumer products, which of course includes fashion, could rise from 27 billion to a whopping $134 billion annually. So this is a massive problem. And brands are really trying to figure out how it is. They can actually make this work in the months ahead. Most brands that rely on cheap overseas manufacturing, especially fast fashion retailers, they‘re looking to, of course, raise prices. And I think cost cutting, of course, is one strategy that we‘ll see. And many are actually looking to rethink their sourcing strategies. Which countries should they be sourcing from. And you know, I think we are going to see of course consumer prices rise. So they might get sticker shock when they go to check out. But I think we‘re also going to see a potential decline in quality. Maybe it‘s less stitching on a garment, which of course saves on labor and production costs. But you know, your clothing might just not last as long.