It doesn’t get more American than a pair of jeans. During the California Gold Rush, Levi Strauss made more money selling denim than even the luckiest of ‘49ers got prospecting for gold, and almost a century later, Old Hollywood stars like James Dean and Marlon Brando cemented jeans as not just a workwear staple, but the U.S. fashion statement.
Today, however, this American fashion icon is, like most other clothing, produced and worn around the world. According to the American Apparel & Footwear Association’s 2024 report, 97 percent of apparel is made abroad, which means the tariff policy announced by President Trump last month will impact not just cars and cell phones, but almost every type of consumer good, including the trendiest low-rise flares. Tariffs are essentially a hefty tax on imports (a cost which, though paid by the importer, is often passed on to consumers), so this new policy will make shopping for clothes more expensive, too.
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In fact, the AAFA estimates that the effective tariff rate on the fashion industry is, on average, five times higher than on all other U.S. imports. Look at China, Vietnam, and Bangladesh, three countries where more than half of our clothes are produced, reports Axios: They’re facing tariffs as high as 125 percent as of April 14. Plus, clothing production is far more complicated than a simple drop ship from overseas. A single garment takes a journey around the world long before it lands at your door via FedEx, making the effect of tariffs, even with the recently announced 90-day pause for certain countries, exceedingly complicated.
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Take a pair of AYR jeans, for example. While they’re designed, cut, and sewn in California, components from all over the world come together to make that happen. Denim made in Turkey and labels made in Vietnam could face 10 percent and 46 percent baseline tariffs, respectively, after the three-month pause. Hardware imported from China (a country for which tariffs were not paused) is subject to a tax of 125 percent today.
“Tariffs have an immediate and devastating impact on the apparel industry,” says Maggie Winter, CEO of AYR, citing the wide range of the company’s fabric sources. “We are somewhat fortunate in that most of our product is produced in the USA, but we are still affected.” The company works with “silk from Asia, pima cotton from Peru, Irish linen, and merino poplin that’s only manufactured by one mill in Italy,” making the production of fashion from an American company far more global than one might expect.
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Every fashion supply chain will be affected, and the frequently changing tariff policies certainly aren’t helping brands sort through the upheaval and find solutions. “We are fortunate to have a long-term
trusted American production partner. We are lucky that we only distribute domestically, and that we sell direct-to-consumer. We are somewhat insulated from the chaos, but we certainly feel it,” says Winter. “Everyone in the apparel industry has been immediately impacted, to some degree.” Despite the uncertainty, AYR is focused on delivering the same quality and pricing to their loyal fans: “We remain committed to creating the best comfort, style, and value in today’s premium denim market.”
In fact, independent brands will be most affected by the administration’s new tariff policy. “Small and medium-sized businesses will be disproportionately affected by tariffs, with many saying they will have to raise prices,” says the National Retail Federation in a recent report. “Unable to absorb the cost of increased tariffs, small business retailers would be forced to pass those additional costs along to their customers in the form of higher prices.”
How the industry will adapt to tariffs still remains to be seen, but unfortunately, it’s small businesses, American designers, and shoppers who will likely pay the price.
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