Vogue Business’ Binns: ‘Your Clothing Might Just Not Last as Long’ We’ll See Decline in Quality Because of Tariffs

CORNISH OK so when ░░░░░░░░ talk about tariffs usually ░░░░░░░░ re talking about steel ░░░░░░░░ I don t know ░░░░░░░░ I want to go ░░░░░░░░ script for a bit ░░░░░░░░ this trade war is ░░░░░░░░ at this point hitting ░░░░░░░░ closet And fast fashion ░░░░░░░░ soon be not so ░░░░░░░░ and not so cheap ░░░░░░░░ me now to talk ░░░░░░░░ this contributing writer for ░░░░░░░░ business Jessica Binns Jessica ░░░░░░░░ were talking so much ░░░░░░░░ the potential for tariffs ░░░░░░░░ November December How has ░░░░░░░░ actually played out for ░░░░░░░░ retail industry in these ░░░░░░░░ couple of months of ░░░░░░░░ BINNS Well good morning ░░░░░░░░ Thank you so much ░░░░░░░░ having me on Of ░░░░░░░░ on the campaign trail ░░░░░░░░ did hear a lot ░░░░░░░░ tariffs And Donald Trump ░░░░░░░░ to his word on ░░░░░░░░ one he made tariffs ░░░░░░░░ reality We ve seen ░░░░░░░░ rounds of 10 percent ░░░░░░░░ against Chinese imports And ░░░░░░░░ re currently looking at ░░░░░░░░ potential reinstatement of 25 ░░░░░░░░ tariffs on goods from ░░░░░░░░ and Mexico both of ░░░░░░░░ have been suspended twice ░░░░░░░░ Currently most goods compliant ░░░░░░░░ the USMCA or the ░░░░░░░░ NAFTA are not subject ░░░░░░░░ these tariffs But of ░░░░░░░░ that could change in ░░░░░░░░ near future And also ░░░░░░░░ European Union is a ░░░░░░░░ U S officials are ░░░░░░░░ further trade action against ░░░░░░░░ E U bloc but ░░░░░░░░ at this time And ░░░░░░░░ tariffs really are showing ░░░░░░░░ across a range of ░░░░░░░░ And I think consumers ░░░░░░░░ starting to feel those ░░░░░░░░ right now CORNISH It ░░░░░░░░ interesting because I know ░░░░░░░░ businesses for consumer goods ░░░░░░░░ basically have like people ░░░░░░░░ just focus on tariffs ░░░░░░░░ figure out ways to ░░░░░░░░ around them You know ░░░░░░░░ that s like taking ░░░░░░░░ a zipper putting an ░░░░░░░░ little scrap of silk ░░░░░░░░ it is When we ░░░░░░░░ from Shein s executive ░░░░░░░░ on this back in ░░░░░░░░ here was the response ░░░░░░░░ starts TANG Affordability is ░░░░░░░░ the anchor is one ░░░░░░░░ very important things Yes ░░░░░░░░ it s the whole ░░░░░░░░ of it It s ░░░░░░░░ value for money And ░░░░░░░░ long as all of ░░░░░░░░ policies are applied or ░░░░░░░░ rules applied equally and ░░░░░░░░ to all that we ░░░░░░░░ continue to base on ░░░░░░░░ same principles and continue ░░░░░░░░ deliver the best products ░░░░░░░░ our customers CORNISH Can ░░░░░░░░ talk about the struggle ░░░░░░░░ some of these retailers ░░░░░░░░ know Forever 21 actually ░░░░░░░░ for bankruptcy I mean ░░░░░░░░ is their second time ░░░░░░░░ six years so it ░░░░░░░░ t necessarily have to ░░░░░░░░ only tariffs But how ░░░░░░░░ it like how are ░░░░░░░░ trying to counter this ░░░░░░░░ So it s a ░░░░░░░░ question And it s ░░░░░░░░ huge issue I was ░░░░░░░░ looking at a PWC ░░░░░░░░ that estimates that tariffs ░░░░░░░░ consumer products which of ░░░░░░░░ includes fashion could rise ░░░░░░░░ 27 billion to a ░░░░░░░░ 134 billion annually So ░░░░░░░░ is a massive problem ░░░░░░░░ brands are really trying ░░░░░░░░ figure out how it ░░░░░░░░ they can actually make ░░░░░░░░ work in the months ░░░░░░░░ Most brands that rely ░░░░░░░░ cheap overseas manufacturing especially ░░░░░░░░ fashion retailers they re ░░░░░░░░ to of course raise ░░░░░░░░ And I think cost ░░░░░░░░ of course is one ░░░░░░░░ that we ll see ░░░░░░░░ many are actually looking ░░░░░░░░ you know rethink their ░░░░░░░░ strategies Which countries should ░░░░░░░░ be sourcing from And ░░░░░░░░ know I think we ░░░░░░░░ going to see of ░░░░░░░░ consumer prices rise So ░░░░░░░░ might get sticker shock ░░░░░░░░ they go to check ░░░░░░░░ But I think we ░░░░░░░░ also going to see ░░░░░░░░ potential decline in quality ░░░░░░░░ it s less stitching ░░░░░░░░ a garment which of ░░░░░░░░ Saves on labor and ░░░░░░░░ costs But you know ░░░░░░░░ clothing might just not ░░░░░░░░ as long.”