When US President Donald Trump launched sweeping new tariffs on Chinese language imports, the purpose was to carry manufacturing again to American soil and shield native jobs. Nonetheless, this strategy of ‘re-shoring’ is complicated and requires years of funding and planning — far too sluggish for the world of ultra-fast vogue, the place manufacturers are used to reacting in weeks, not years.
Many clothes corporations began to maneuver manufacturing out of China throughout Trump’s first time period. They relocated to international locations similar to Vietnam and Cambodia, when the preliminary China-specific tariffs hit.
This development accelerated with the newer “reciprocal” tariffs. As a substitute of re-shoring manufacturing, many vogue manufacturers are merely sourcing from whichever nation affords the bottom complete price after tariffs. The outcome? The ultra-fast vogue machine tailored rapidly and have become much more exploitative.
From Guangzhou to your wardrobe in days
Platforms similar to Shein and Temu constructed their success by providing trend-driven clothes at shockingly low costs. A $5 costume or $3 prime would possibly look like a discount, however these costs conceal loads.
How Trump’s commerce struggle is supercharging the quick vogue trade
A lot of Shein’s manufacturing takes place within the so-called “Shein village” in Guangzhou, China, the place employees usually sew for 12-14 hours a day beneath poor situations to maintain tempo with the demand for brand spanking new objects.
When the US cracked down on Chinese language imports, the intention was to make American-made items extra aggressive. This included elevating the tariff on Chinese language items as excessive as 145 p.c (since paused), and shutting the “de minimis” loophole, which had allowed imports beneath US$800 to enter tariff-free.
However these tariffs didn’t halt ultra-fast vogue. They only rerouted manufacturing to international locations with decrease tariffs and even decrease labour prices. The Philippines, with a relatively low tariff fee of 17 p.c, emerged as a stunning various. Nonetheless, the nation can’t present the economic scale and infrastructure to match what China can provide.
So why does Australia matter?
A lot of a budget vogue beforehand certain for the US is now flooding different markets, together with Australia. Australia nonetheless permits most low-value imports to enter tax-free, and platforms similar to Shein and Temu have taken full benefit. Australian customers are among the many most frequent Shein and Temu patrons per capita globally.
Simply three p.c of clothes is made in Australia and most labels depend on offshore manufacturing. This makes Australia a super goal marketplace for ultra-fast vogue imports. We have now excessive buying energy, lenient import guidelines and powerful demand for low-cost model, particularly because of the cost-of-living disaster.
The hidden prices of low-cost garments
The environmental affect of quick vogue is well-known. Nonetheless, amid the chaos of Trump’s tariff bulletins, far much less consideration has been paid to how these insurance policies — along with the retreat from local weather commitments — worsen environmental harms, together with these linked to quick vogue.
The irony is that the tariffs meant to guard American employees have, in some circumstances, worsened situations for employees elsewhere. In the meantime, customers in Australia now profit from sooner supply of even cheaper items as Temu, Shein and others have improved their delivery capabilities to Australia.
Australian customers ship greater than 200,000 tonnes of clothes to landfill annually. However the deeper downside is structural. Your entire enterprise mannequin is constructed on exploitation and environmental harm.
Manufacturing unit employees bear the brunt of cost-cutting. Within the race to remain aggressive, many producers cut back wages and overlook hazardous working situations.
Will moral vogue ever compete?
Fixing these issues would require a world rethink of how vogue operates. Governments have a job in regulating disclosures about provide chains and implementing labour requirements.
Manufacturers must take duty for the situations of their factories, whether or not straight owned or outsourced. Transparency is important.
Alternate options to quick vogue are gaining traction. Clothes leases are rising as a promising enterprise mannequin that helps construct a extra round vogue financial system. Charity-run op outlets have lengthy been a sustainable supply of second-hand clothes.
Australia’s new Seamless scheme seeks to make vogue manufacturers liable for the complete lifetime of the garments they promote. The goal is to assist folks purchase, put on and recycle garments in a extra sustainable approach.
Shoppers additionally matter. If we proceed to count on garments to price lower than a cup of espresso, change will likely be sluggish. Recognising {that a} $5 t-shirt has hidden prices, borne by folks on the manufacturing facility ground and the surroundings, is a primary step.
Some moral manufacturers are already displaying a greater approach and provide garments made beneath fairer situations and with sustainable supplies. These garments will not be as low-cost or quick, however they characterize a extra aware various, particularly for customers involved about artificial fibres, poisonous chemical substances and environmental hurt.
Trump reshuffled the deck, however didn’t change the sport
Trump’s commerce guidelines goal to re-balance international commerce in favour of American trade, but have price corporations greater than US$34 billion in misplaced gross sales and better prices. This price will ultimately fall on US customers. In ultra-fast vogue, it principally uncovered how fragile and exploitative the system already was.
At this time, manufacturers similar to Shein and Temu are thriving in Australia. However except we deal with the systemic inequalities in vogue manufacturing and rethink the incentives that drive this market, the true price of low-cost clothes will proceed to be paid by these least capable of afford it.
The author is a Postdoctoral Analysis Fellow on the College of Expertise Sydney, Australia
Republished from The Dialog
Printed in Daybreak, ICON, June twenty second, 2025
