Fashion Law Journal
As of April 13, 2025, the global fashion industry is deep in the ripple effects of an escalating U.S.–China trade war—this time with legal, financial, and supply chain implications that are impossible to ignore.
On one side: the Trump administration, which has officially imposed a 145% tariff on Chinese imports[1]. On the other: Beijing, which just retaliated with a 125% tariff on U.S. goods[2]. But the shockwave that truly hit fashion brands? The elimination of the de minimis rule, a foundational element in the e-commerce model of ultra-fast fashion retailers like Shein and Temu.
Let’s break down what this means—legally and strategically—for the fashion world.
De Minimis No More: Cross-Border E-Commerce Gets a Legal Shake-Up
Since May 2, the U.S. no longer allows duty-free entry of foreign goods under $800. Instead, a $25 minimum tariff per item now applies, and this will increase to $50 per item in June[3]. These numbers matter: platforms like Shein relied on the de minimis exemption to ship thousands of low-cost packages directly from Chinese warehouses to U.S. customers—skipping tariffs entirely.
Now, not only will these items be taxed, but companies must also restructure their import processes, declare full item values, and comply with U.S. customs law—creating a flood of new compliance obligations. Failing to adapt quickly opens the door to customs disputes, regulatory fines, and loss of market share.
Intellectual Property Exposure in the New Supply Chain Rush
Facing higher duties and uncertainty in China, many brands are accelerating shifts to Vietnam, India, and Bangladesh. But these fast moves come with legal blind spots. Trademarks and designs must be re-registered in new jurisdictions, IP enforcement levels vary wildly, and local partners may not meet global standards for confidentiality and exclusivity.
The fast fashion sector, already criticized for IP infringement risks, is particularly vulnerable in this transition. Legal teams need to lead—not follow—by mapping out territorial IP protection strategies and preemptively securing rights in emerging manufacturing hubs.
Shein’s IPO: A Case Study in Regulatory Strategy
Shein—a central player in this trade saga—has received approval from the UK Financial Conduct Authority to launch its £50 billion IPO in London. But it still awaits clearance from Chinese regulators. And now, under investor pressure, it may slash its valuation to around $30 billion[4].
This isn’t just corporate news—it’s a fashion law case study. From data governance to supply chain transparency, the legal due diligence for this IPO reflects the shifting expectations placed on fashion giants operating across borders. ESG concerns, tariff exposure, and cross-jurisdictional compliance are now IPO-level issues.
Tariffs Reach the Aisle: Industry-Specific Impacts
The effects of these tariffs are already being felt in real time. One unexpected sector hit hard? The bridal industry. According to U.S. retailers, the price of imported wedding gowns—many of which are manufactured in China—could double[5]. Boutique owners face tough decisions: absorb the cost, raise prices, or exit certain brands. Contract renegotiations and exclusivity clauses may need to be revisited.
This underscores the broader legal point: tariff volatility has direct implications for product pricing, contract enforcement, and consumer protection law.
Conclusion: Trade Law Is Now Fashion Law
This isn’t just a political feud—it’s a legal restructuring of how fashion operates globally. For lawyers, the challenge is not only understanding these shifts but anticipating their domino effect across sourcing, branding, compliance, and consumer protection.
As the fashion industry weathers this new economic climate, legal foresight isn’t optional—it’s a competitive advantage. Whether guiding IPOs, safeguarding IP, or reviewing import contracts, the role of legal counsel has never been more central—or more urgent.
Fashion law is no longer niche. It’s the framework holding the industry together.
References:
[1] New York Post, “Trump tariffs on China will actually be 145%, White House clarifies,” April 10, 2025.
https://nypost.com/2025/04/10/us-news/trump-tariffs-on-china-will-actually-be-145
[2] Reuters, “China raises tariffs on U.S. goods to 125% in retaliation,” April 11, 2025.
[3] The Guardian, “Trump targets Shein and Temu in crackdown on cheap Chinese imports,” April 13, 2025.
https://www.theguardian.com/us-news/2025/apr/13/trump-tariffs-fast-fashion-prices
[4] Shares Magazine UK, “Shein gains UK IPO green light, awaits China nod,” April 11, 2025.
[5] Business Insider, “Wedding dress prices could double due to Trump’s new tariffs,” April 13, 2025.
https://www.businessinsider.com/tariffs-trump-china-wedding-dresses-2025-4
