Trump's Tariffs Hit U.S. Shoppers Hard

American Eagle Outfitters expects to reduce the U.S. tariff impact by more than 60% by early 2026 via several mitigation efforts. The company’s strategy involves ongoing price increases, negotiating costs with suppliers, choosing the most cost-effective transport between air and ocean freight, and shifting sourcing away from countries subject to higher U.S. levies #fashion #globaltrade #supplychain #americaneagle #sourcing https://lnkd.in/e6kqnMJB

American Eagle Outfitters Inc.'s multipronged tariff approach seems to be paying off. During a recent earnings call, the apparel brand said it expects to reduce the U.S. tariff impact from $180 million to $70 million by early next year. https://lnkd.in/g3XQ5hWJ #supplychain #tariff

While Chinese imports account for around 17% of goods sold in the U.S., imports from China declined 27% in September from last year for key consumer goods segments, such as apparel, toys, home furnishings and electronics. Consumer electronics remain more highly exposed to Chinese sourcing. The magnitude of a potential 100% tariff will be a tough pill for American retailers and consumers to swallow. https://lnkd.in/gkm2pw7C

📉 Canadian manufacturing sales fell 1% in August, and wholesale receipts dropped 1.2%, highlighting the mounting toll of U.S. tariffs on trade-exposed sectors. Read more → https://lnkd.in/dA5X8nPD #CdnEcon #Manufacturing #Trade #Tariffs

Nike Faces $1bn Tariff-Driven Cost Surge: Procurement Takes Center Stage With the implementation of U.S. trade tariffs—particularly targeting imports from China, Vietnam, and Cambodia—Nike anticipates an increase of up to US$1bn in production costs. This has triggered a strategic reassessment of its procurement approach. In 2024, Nike relied heavily on low-cost production hubs in Asia, sourcing 95% of its footwear and 60% of its apparel from the affected regions. However, the new tariffs have exposed the vulnerabilities of a supply chain built primarily on cost-efficiency. Procurement teams are now tasked with driving critical changes: Rebalancing sourcing locations to reduce overdependence on China Securing alternative supplier bases in regions like Indonesia and India Enhancing agility to respond to fragmented supply networks and shifting cost structures Nike’s CFO projected a sharp decline in Chinese-sourced footwear by fiscal 2026. In the interim, procurement has supported pricing adjustments to offset cost pressures—raising product prices by up to $10 on select items. The broader industry, including Adidas and Puma, faces similar challenges, with Vietnam seeing tariff hikes up to 46%. A joint appeal by 76 companies—including Nike—has called for tariff relief, underscoring the sector-wide urgency. Ultimately, procurement’s evolving role is to shift from a cost-centric function to a strategic enabler—one that builds resilient, adaptable, and future-proof supply networks in an increasingly volatile trade environment.

Most apparel brands lose money on import compliance without realising it. In 2024, apparel brands paid nearly $12B in import tariffs — and even a 5% misclassification rate can drain millions. When every SKU, fabric blend, and sourcing decision affects duty cost, small errors add up fast. Join us on the 29th of October to learn how leading brands are turning classification from a risk into a strategic advantage. Register: https://lnkd.in/eKckEkkj

“From Ralph Lauren to Levi Strauss and American Eagle Outfitters, retailers have bulked up their inventory, an intentional move to get goods before import tariffs went into effect. The risk heading into the crucial holiday shopping season is that inflation-wary shoppers won’t spend as much or will buy fewer items because prices are higher. For some retailers, this could mean deep discounting to work through excess inventory, which would ultimately hit margins.” “As companies start to report on this year’s third quarter, analysts are looking for signs of trouble in the form of inventory growth that is outpacing sales growth.” “Inventory for apparel brands was up an average of 6.2% in the second quarter of 2025 compared with a year earlier, according to a review of companies by research firm Telsey Advisory Group. Inventory was also up in other categories: by 4.8% for footwear companies, 11.5% at discount chains, and 8.4% in specialty apparel businesses, according to the firm, which looked at data from FactSet.” “But a summertime hiring slowdown has raised worries about the health of the U.S. labor market. Inflation also remains higher than the Federal Reserve wants, and tariffs are expected to push some prices higher.” “Consumers surveyed by PricewaterhouseCoopers said they expect their holiday spending this year to decline on average by 5% compared with last year, the first notable drop since 2020. Eighty-four percent of consumers expect to cut back in the next six months, the firm said.” ““The big question is whether spending will continue at the same pace when the prices of products across most categories go up, which is in the process of being sorted out right now,” said Rick Patel, a managing director of equity research at Raymond James. Across footwear, apparel and accessories, Patel predicts mid-single-digit price increases this fall, with the potential for further increases in early 2026. Inventory sitting in warehouses ties up capital and if demand doesn’t shape up as planned, having to discount hurts margins, he said.” - Jennifer Williams

🚨Retail supply chains are being rewritten in real time. Major players are no longer just reacting—they’re frontloading inventory, diversifying sourcing, and reshoring production to outmaneuver the cascading impact of Trump’s tariffs. The retail landscape in 2025 is a masterclass in agility amid disruption. Key Retailer Actions • 🛒Walmart: Warned customers about upcoming price hikes due to tariffs, with executives stating the magnitude of the increases too large to absorb fully. • ��️Ikea: Began sourcing cabinet frames and shelves in the U.S., alongside a new strategy of smaller store formats and possible partnerships. • 👗👚Shein & Temu: Announced price increases and supply chain changes to address rising trade costs and new regulatory crackdowns. • 🧸Mattel: Actively reducing reliance on China, aiming for no single country to represent more than 25% of global production by 2027. • 🪑🛋️Wayfair & Williams-Sonoma: Shifted inventory strategies and warned of the impact of furniture tariffs, while competitors with more U.S. production (La-Z-Boy, Ethan Allen) saw stock gains. • ⛺️🎣Academy Sports + Outdoors: Further diversified suppliers, reducing sourcing from China, and increasing imports from Cambodia/Bangladesh. • 🛠️Stanley Black & Decker: Pursued supply chain adjustments and price increases, with delays expected as pricing changes are rolled out to customers. • 👟Nike: Projected a $1 billion impact from the new tariffs, facing direct cost pressures and signaling future strategic changes. This mix of immediate tactics and strategic foresight underscores the depth of disruption and adaptation across retail sectors driven by new trade policies. #TrumpTariffs #SupplyChainStrategy #RetailTransformation #GlobalTrade #SourcingDiversity #Reshoring #InventoryManagement #RetailInnovation #TradePolicyImpact #BusinessStrategy

 When “diversifying” doesn’t always mean “growing” A recent Economic Times article shared how many Indian apparel exporters hit by US tariffs, are now looking to diversify into the UK and European markets. On the surface, it seems like the perfect solution. But is it, really? Having worked for over 25 years across India and the UK,  with retailers like Tesco, Asda George, Primark, C&A, Paul Smith, and Matalan, I’ve seen firsthand how differently the US and European markets function when it comes to sourcing. And that’s where I’d like to share a word of caution. Before you invest heavily in upgrading your facilities or obtaining certifications for the EU/UK region, it’s important to understand that the market expectations, buying patterns, and partnership dynamics are very different. 💡 Here are 5 key challenges most exporters face when switching from the US to the European market: 1. Order quantities are smaller,  often 50–60% less than US orders. Margins are slightly better, but the lower volumes mean overall profitability can drop if you’re not structured for small-batch efficiency. 2. The buying process is less standardized and more relationship-driven. While US buyers follow well-defined templates and clear processes, UK and European teams prefer collaboration and customization,  it takes more time and handholding. 3. Longer lead times and extended product development. Buyers in Europe often spend more time perfecting quality, fabrics, and details before confirming orders. This can slow down turnover if you’re used to fast, repetitive cycles. 4. The product range is very different. European fashion has a much stronger luxury and high-end segment. They value craftsmanship, quality, and detail over speed and volume,  the very opposite of US fast fashion. 5. Decisions are made “on the table.” European buyers often want to see tangible samples, fabrics, and finishes before committing, which requires flexibility, patience, and a robust sampling setup. 👉 So yes, diversifying into Europe may look like the logical next step,  but only if you restructure your business model to match how the market actually works. Otherwise, what feels like an opportunity can quickly become an expensive adjustment. 🔽 Save this for later. Moved from US to EU buyers? Share one surprise you didn’t expect. #ApparelManufacturing #Exports #Sourcing #FashionSupplyChain #IndianManufacturers #UKRetail #EuropeanRetail https://lnkd.in/gxCJtDxG

Resale’s popularity in the US could offer hedge against tariffs https://lnkd.in/d23kPPtH Resale’s Popularity in the US Could Offer Hedge Against TariffsIn the ever-changing landscape of retail, one trend stands out as a potential safeguard against economic fluctuations: the resale market....