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While the tariffs are paused, brands have scrambled to make sense of how they can protect themselves from a global trade war when their supply chains are exposed. While the 90-day pause is due to end in July, it’s entirely unpredictable how it will play out. Trump has said that negotiations with countries were underway, but that if they didn’t reach a deal, tariffs would be set in the “next two to three weeks”. While the situation has rattled markets and sparked urgent calls with trade attorneys and supply chain teams, it hasn’t yet redrawn the sourcing map. Brand executives and founders have said that the uncertainty has made it impossible to make big decisions — like moving sourcing to a new country just for the tariffs to later disappear. If anything, it underscores how deeply entrenched the existing system remains — and how paralysed brands can become in the face of political whiplash and rumblings of an all-out trade war.Official Theres No Place Like Columbus Shirt
Most responses have been temporary fixes. Logistics giant Flexport reported a rush to move cargo into the US from tariff-hit nations ahead of the 9 April deadline. “For companies importing from China, that turned out to be a smart move,” says Sanne Manders, president and founding member of Flexport. “But for most other countries, it didn’t change much. Yes, a 10 per cent tariff still matters — but in retail terms, that’s closer to a 3 per cent impact.” Manders says Flexport data shows a 30 per cent decline in shipments from China to the US. Some clients paused or postponed shipments; others went further, cancelling purchase orders entirely. Still, the urgency hasn’t triggered a wholesale reordering of supply chains — yet. “Nobody can have a rational reaction to the Trump tariffs,” says Miran Ali, a board member of the Bangladesh Garment Manufacturers and Exporters Association. “There’s a tendency to overstate their impact, but the reality is more nuanced. Yes, they inject chaos. But we’re seeing recalibration, not abandonment.” China remains the top source of apparel imports to the US, despite a steady decline since the first round of Trump tariffs took effect in 2018, says Julia K. Hughes, president of the United States Fashion Industry Association (USFIA). That decline accelerated during the Covid-19 disruption, as brands looked to diversify. But so far, the rebalancing has been measured rather than monumental.
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