Own goal? Foreign brands plan to sidestep tariffs and cut back US exposure says JOOR
It's also interesting that 76% of non-US brands are changing their selling strategies and prioritising partnering with retailers outside the US.
JOOR transaction data reveals that non-US brands conducting business with American retailers on average generate 20% of their sales from the US market. A significant 21% of these brands are extremely exposed to the US market, driving more than half of their sales from the American fashion wholesale channel.
It seems that for the majority of brands — whether they're US-based or not — the favoured options are raising prices or seeking other markets rather than making disruptive changes to well-established supply chains.
As for retailers, the survey data shows 75% of non-US retailers planning to decrease their investment in US brands, which could mean the tariff stagey being a major own goal as far as boosting the export trade from the US is concerned.
Not that it's all negative from the viewpoint of US brands in terms of what's sold within the country. Some 45% of US retailers said their investment in US brands will remain unchanged, but a higher 49% confirmed their plan to increase investment in domestic brands.
The boost this latter percentage might deliver to American brands can be seen from before and after intentions. Before the tariff announcement, JOOR's Spring Market Survey 2025 asked retailers about their investment in international brands, with 47% confirming that they were increasing investment in them. Post-tariff announcement, this sentiment 'dramatically shifted' with only 20% of retailers now planning to increase such investment.
Amanda McCormick Bacal, SVP of Marketing at JOOR, said that 'concern over recently announced tariffs is causing significant flux within the global fashion industry. Brands preparing for market report plans to increase prices, source from alternate countries, and produce tighter collections. Retailers are similarly adjusting their buying strategy and looking to nurture new brand partnerships to help mitigate the impact of tariffs'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
LeMonde
5 hours ago
- LeMonde
Europe and US to seek to avoid return of steep tariffs in weekend of last-ditch trade talks
Seeking to stave off a damaging trade war, EU trade commissioner Maros Sefcovic held discussions in Washington this week with his US counterparts. The talks were described as productive, but neither side indicated how close they were to a deal. If the EU does not clinch an agreement with the US by Wednesday, higher levies will return and unleash economic pain on the bloc. The European Commission, which leads trade policy for the 27-country bloc, briefed EU ambassadors on Friday about how talks were going. During the meeting, a senior EU official told member states there was no deal yet but that talks would continue "likely over the weekend," an EU diplomat told AFP agency. "A first basic agreement until deadline isn't off the table. Things are still very much in flux," the diplomat said. Another European diplomat said it was not clear yet how US President Donald Trump would classify the status of negotiations with the EU when it addresses its trading partners early next week. Trump could keep the tariff suspension for partners where there is an agreement in principle, restore tariffs if there is no deal or reimpose levies where negotiations are going badly, the diplomat said. 'Imbalance' will remain If no deal is struck, the default levy on EU imports is set to double to 20% or even higher, with Trump having threatened at one point to slap 50% duties. EU chief Ursula von der Leyen said on Thursday that Brussels sought an agreement in principle, which would mean further talks would be necessary on the details. But the commission believes that whatever happens, an imbalance in trade measures between the EU and the US will remain. "This begs the question, asked by a number of ambassadors today, how we prepare to remedy that imbalance," the diplomat said. Some capitals appear to have reconciled with the prospect of the US keeping the current flat levy of 10% on EU exports, the challenge then being to negotiate carve-outs for key sectors, such as cars and aeronautics.
Euronews
7 hours ago
- Euronews
Donald Trump says new tariffs of up to 70% will begin 1 August
US President Donald Trump is expected to begin formally notifying key US trading partners of a sweeping new tariff regime as early as Friday, according to media reports. The duties, set to take effect on 1 August, could see some countries face levies of up to 70% on exports to the United States. Speaking to reporters ahead of the Independence Day holiday, Trump said around "10 or 12" letters would be issued immediately, with more to follow over the coming days. "By the ninth they'll be fully covered," he stated, referring to a 9 July deadline he previously set for reaching deals that could avert the higher tariffs. Trump's approach, widely seen as part of his America First trade agenda, leaves little room for negotiation. "They'll range in value from maybe 60 or 70% tariffs to 10 and 20% tariffs," he added, making clear that the scale of the new charges would vary by country. The United States is currently in sensitive talks with several economies, including South Korea, Indonesia, Switzerland and the European Union. The discussions are understood to be at a critical stage, where delicate issues are being tackled. The White House first announced the higher "reciprocal" tariffs on 2 April, but delayed full implementation for 90 days to allow time for talks. During the interim, a 10% rate was applied. Should the full slate of tariffs be enacted next week, Bloomberg Economics estimates the average duty on US imports could rise to around 20%, up sharply from the pre-Trump average of roughly 3%. Such an increase would represent a significant escalation from the initial framework unveiled in April, where proposed tariffs ranged from 10 to 50%. The president has not yet detailed which countries or goods would fall under the highest rate brackets. Trump said the measures would begin generating revenue from next month. "Countries would start to pay on 1 August. The money will start coming into the United States on 1 August," he said. While tariffs are officially paid by importers or their intermediaries, the costs are often passed down to consumers or absorbed by businesses through reduced profit margins. According to local media, economists have cautioned that the delayed impact of tariffs could complicate efforts by the Federal Reserve to manage inflation. Some Fed officials are reportedly hesitant to cut interest rates while the full economic effects of the trade measures remain unclear. The new tariffs have rattled global markets, with shares in Asia and Europe declining and the dollar weakening. US markets remained closed on Thursday for the Fourth of July holiday.
Fashion Network
7 hours ago
- Fashion Network
Farm Rio extends Selfridges pop-up until late July
After its 'huge success' as a two-month Selfridges pop-up, Brazilian fashion brand Farm Rio is now extending its stay at the London fashion department store until the end of July. The 732 sq ft third floor space forms an immersive shop-in-shop experience, created in collaboration with the Brazil-based design studio Estúdio Campana, hailed as 'more than just a retail space'. As well as occupying two main entrance windows, there were also four additional secondary displays, all the areas that were transformed into art installations. Driven by a 'deep sense of purpose and shared values', it 'highlights the beauty of Brazilian heritage, commitment to nature, and the transformative power of art'. For Farm Rio's creative director, Kátia Barros, the venture 'has represent[ed] the realisation of a long-held dream: 'to have a tree inside one of the brand's stores.' For interior designer Humberto Campana, it 'honours… a commitment shared by Farm Rio that in 2024 celebrated 1.5 million trees planted across six Brazilian biomes through the '1,000 Trees a Day, Every Day' project.' The project wraps up the brand's journey in the UK, including the opening of its third and recent Farm Rio store in London at Carnaby Street and its first participation in the Chelsea Flower Show.
