Fashion Brands Navigate a New US Trade Landscape

The United States has long been the prize market for fashion brands and retailers seeking international growth. Its scale, consumer appetite and trendsetting culture make it integral to global strategies; the recent policy changes, however, have reshaped and complicated the rules of entry.

For fashion brands trading from the UK and beyond, the policy shift means rethinking routes to market, reconsidering supply chains and testing new business models. The coming seasons will be less about fast expansion and more about resilient strategies that balance cost pressures with consumer demand.

The removal of the “de minimis” rule on August 29^th means that all imported shipments, regardless of value, now face duties and customs checks. This erased a key advantage that many overseas direct-to-consumer fashion retailers had relied on – the ability to sell smaller orders into the US without extra fees or delays.

In parallel, tariffs remain volatile and vary significantly by sourcing country. While general import duties on clothing start at 10% from the UK, some nations face far higher rates, with certain categories of goods taxed at up to 50%. Importers who rely on those sourcing markets now face soaring costs and disrupted supply chains at short notice.

Strategic Shifts: Rethinking Market Entry

Retailers and brands have taken divergent approaches to these changes. Some, concerned that rising costs will erode competitiveness, are delaying physical expansion plans or scaling back existing operations, instead of concentrating on online trade or wholesale partnerships. This approach allows them to maintain brand visibility in the US while minimising upfront investment in stores, warehousing and staff.

Others, confident in long-term consumer demand, are pressing ahead with store openings in key American cities. This physical presence not only strengthens branding but also enables retailers to manage fulfilment more efficiently, using local stores as small-scale hubs to bypass international shipping headaches.

Passing higher costs onto consumers is unavoidable, but careful price calibration is essential. Many businesses are introducing increases of 20–30% on US retail prices, assuming that higher disposable incomes, particularly among female shoppers buying occasion-wear and premium fashion, will sustain appetite despite the uplift.

Transparency is central to maintaining consumer trust. Rather than presenting unexpected duty surcharges at checkout, some retailers are building all costs into a single upfront price. This “all-inclusive” approach reassures shoppers and helps preserve brand reputation in a competitive market.

Supply Chains Under Pressure

Sourcing strategy is now a critical area of risk management. Those heavily invested in suppliers from tariff-hit countries have seen expansion efforts stall, as higher landed costs undermine value-for-money propositions. To remain viable, many retailers are accelerating their diversification of sourcing regions, even if this means absorbing short-term disruptions in quality, speed or scale.

At the same time, the industry faces additional bureaucracy in customs documentation and higher base shipping fees, regardless of origin country. For businesses already managing tight margins, this combination of sourcing turbulence and added cost layers threatens profitability.

For now, American shoppers may not have felt the full force of these changes, as retailers balance absorbing costs against increasing prices. However, as autumn/winter collections land, consumers are set to face the reality of higher tags, most notably in womenswear. 

The central question remains how far US buyers will accept price rises before seeking alternatives – and whether brand loyalty and product desirability can outweigh new financial considerations.

A Market Worth the Challenge

The US still represents one of the most attractive markets for fashion expansion, with size and spending power that offers opportunities difficult to replicate elsewhere. The true challenge lies in navigating volatility while ensuring that long-term positioning is neither compromised by hurried pricing decisions nor delayed market entry.

The “golden quarter” will act as a litmus test and the strategies tested now will define which brands secure a foothold in the US fashion market for the decade ahead.

Noatum Logistics combines local expertise in key American markets with decades of global experience in fashion supply chains, offering tailored, agile solutions for brands and retailers.

Our award-winning technology and fashion logistics capabilities provide end-to-end supply chain visibility, dedicated fulfilment centres, and specialist teams who understand your products’ specific requirements.

Track deliveries, optimise costs, and manage your supply chain seamlessly—from supplier to final fulfilment. With responsive support and hands-on experience across the US, Noatum Logistics empowers brands to stay agile, reduce risk, and build competitive advantage in a fast-changing market.