Tariffs in Fashion: How Custom Brands Can Compete with Ready-to-Wear

As outlined in the recent Business of Fashion article, small ready-to-wear brands are being pushed to the edge by trade uncertainty and escalating U.S. tariffs. Their response? smart, creative strategies to stay competitive. For custom fashion retailers, these same pressures are either already at your doorstep or soon will be.

How Ready-To-Wear Brands Are Adapting to Tariffs

In the BoF feature, several independent brands demonstrated how they’re thinking beyond short-term survival:

  • Incorporating in the U.S. to reduce tariffs by importing goods directly at cost price, rather than at marked-up European retail rates (Lisa Yang).
  • Expanding U.S.-based warehousing to manage customs more efficiently and avoid unexpected duties (Miista).
  • Stockpiling inventory ahead of tariff enforcement (Freja NYC).
  • Cutting non-essential costs, such as international travel or large-scale shoots, to maintain margins (3sixteen).
  • Avoiding price hikes by adding value (like better packaging) and communicating clearly when increases become necessary.
  • Shifting focus to alternative markets, such as Canada, Australia, the Middle East, and Southeast Asia.
  • Protecting supplier relationships, even if they come with tariff exposure — long-term quality wins over short-term savings.
 

These strategies underscore a powerful truth: smart, nimble adjustments now protect long-term market position.

What Custom Fashion Retailers Can Do to Stay Competitive

Custom fashion is a different beast from ready to wear, but the pressures are the same. You may not be running large inventories, but you’re importing fabrics, accessories, packaging, and more. Often from markets now facing increased U.S. scrutiny.

Here’s how custom brands can adapt the RTW playbook:

1. Reevaluate Your Import Strategy

If you’re already importing under your own U.S. business entity — as most custom fashion retailers likely are — the next step is to review your shipping pathways and declared values. Double-check whether you’re declaring based on resale value or actual cost of goods and assess whether shifting to direct sourcing from the origin country (instead of routing through third countries) could reduce unnecessary markups in duties. Small documentation tweaks could lead to significant savings in today’s tariff environment.

2. Establish U.S. Warehousing Early

Even if you’re made-to-order, it’s wise to use the current 90-day tariff truce window between the U.S. and China to stock your top 3–5 core fabrics stateside. That way, if tariffs snap back into effect later this year, you’re not caught off-guard. A small U.S. fabric inventory can help you maintain turnaround time and pricing stability without compromising your sourcing relationships abroad.

3. Model Pricing Scenarios — And Communicate Early

Rather than springing price increases on your customers, test tiered pricing and link it to added value. Think upgraded fit consultations, packaging, or styling guidance.

4. Diversify Market Risk

Are you overly dependent on U.S. customers? Start building visibility in other markets — especially regions less prone to policy swings, like Canada, Australia, or the Middle East.

5. Stay Lean and Cut Sampling Costs with Tech Tools

Sampling, photography, and physical prototyping can quickly eat into your margins — especially in volatile trade environments. RTW brands are already moving toward virtual alternatives to lower costs. Custom fashion retailers can do the same.

Tariff Solution Example of 3D Web Configurator

By adopting 3D visualization and AI-powered presentation tools, you can eliminate unnecessary sampling rounds and reduce seasonal photoshoot costs. Platforms like our own Scanatic™ Studio allow you to render garments digitally, showcase design variations, and test customer feedback before committing to production. It’s not just cost-efficient — it’s faster, more flexible, and aligned with sustainability values that resonate with today’s consumers.

In Summary

What unites both ready-to-wear and custom fashion brands is the urgent need to plan, protect, and pivot. The tariff environment may feel unstable, but for those who move decisively — like the brands profiled in BoF — it’s a chance to tighten strategy and future-proof your operations.

If you’ve been sitting on operational upgrades or pricing questions, now’s the time to act — not react.

Leave a message below and let us know if you’d like help running a tariff impact scenario or optimizing your U.S. import strategy.

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