One of our Custom Fashion Trendline subscribers recently asked:
“Our fabric costs just doubled overnight. What are we supposed to do now?”
They’re not alone.
In early April, the U.S. government introduced sweeping new tariffs on imported textiles, trims, apparel components, and finished goods. As of today, tariffs on goods from China have jumped to 125%, while tariffs on other countries have been temporarily paused for 90 days.
Most headlines focus on big brands and global trade politics. But the deeper story? It’s about how custom fashion brands may be uniquely positioned to adapt — and even thrive — in this environment.
Tariffs are rippling through every segment of the fashion industry, from athleisure to bridalwear. Major U.S. brands like Nike, Tapestry, and PVH have already seen their stock values dip in response. As shown in the graph above, nearly 80% of apparel imports into the United States in 2024 originated from Southeast Asia—one of the regions most affected by the recent tariff hikes.
Even brands manufacturing in the U.S. aren’t exempt. While the garments may be stitched locally, the majority of fabrics and trims are still sourced globally. Aside from a few niche or specialty textiles, the supply chain remains deeply international—and vulnerable.
The latest tariff changes are shaking up everything — from sourcing to pricing to how brands plan their next season. This isn’t just a blip. It’s a signal.
Fashion brands — big and small — are treating this as a wake-up call. The smartest ones aren’t just reacting. They’re using this moment to rewire their operations to be leaner, faster, and more resilient.
Here’s what we’re seeing brands actually do right now:
Instead of raising prices across the board, brands are looking closely at where they have pricing power. For example, if your tailored wool blazer is a bestseller, you might have room to increase the price — especially if you’re transparent about rising material costs. But for basics like T-shirts or accessories, many are holding prices steady to stay competitive and attract new customers.
Brands are trimming the fat. If a product line has five colorways and only three move, the rest are getting cut. Streamlining assortments helps protect margins while still delivering on design and fit — and avoids bloated SKUs that drain cash and shelf space.
Rather than scrambling to relocate production, brands are investing in resilience. That means identifying backup vendors now, testing materials from new mills, and building relationships that give them flexibility. This proactive work ensures that if tariffs hit hard again — or delays emerge — they already have options.
Cost-cutting is happening — but strategically. Brands are steering clear of slashing design or marketing budgets. Instead, they’re targeting waste, inefficiencies, and development costs. One smart move: adopting digital sampling tools like Scanatic Studio to reduce physical sample rounds, save time, and cut fabric waste.
Custom and on-demand fashion brands are built for moments like this. When prices spike, materials shift, and mass brands scramble, you’re built to move fast and stay lean.
Because you don’t carry excess inventory, you’re not burdened by high storage costs or leftover goods made with newly expensive materials. Your leaner production timelines also mean you can quickly adapt to what’s trending — from social media-fueled styles to last-minute fabric changes.
With the growing price gap between custom and mass-market narrowing due to tariffs, this is a great time to offer affordable entry points into your brand. Consider introducing loss-leader with slim-margin products — like a customizable shirt or accessory — that are priced competitively with off-the-rack alternatives. This creates a low-barrier first experience with custom fashion, helping you attract a new cohort of customers. Once they experience the difference in fit, personalization, and brand connection, you’ve laid the foundation to nurture them into lifelong custom fashion buyers.
As mass-market brands pause or cancel production, excess materials will flood the market. Think: canceled orders, surplus rolls, and unused trims. As a smaller or made-to-order brand, you can scoop up these discounted materials — cutting costs without compromising creativity. Your flexibility becomes your biggest advantage.
When you sell directly to your customers, you own the relationship — and the story. That’s a powerful position when you need to make tough decisions like adjusting pricing. If you’re transparent about rising material costs and clear about your commitment to quality, many customers will understand and even support the shift.
This is especially true if your audience already sees your brand as honest, values-driven, and human. Mass-market brands that sell through retailers or marketplaces don’t have that luxury — they can’t easily explain price changes or maintain that personal connection. You can, and that makes all the difference.
Custom and made-to-order brands have the chance to lead the industry toward a smarter, more sustainable model — one that’s built for agility, not excess.
Drop us a message. We’re always interested in how custom fashion brands like yours are navigating change. Let’s keep the conversation going..
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