Battle-weary Australian fashion labels bruised

The question is now determining where exactly those new costs land. “Someone has to pay them,” said Cainceance-James.

“Or the price must go to the consumer in the shop or the wholesale partner, such as [department store] Saks must reduce the margin or the brand must reduce the margin. So suddenly, all these affairs will be renegotiated and someone will have to pay. “

Fashion is a significant, and sometimes neglected segment of the total exports of Australia, contributing with $ 28 billion to the Australian economy every year and $ 7.2 billion of exports, more than double that of Australian wine (which has reached almost $ 2.6 billion in 2024).

THE We is of course an attractive market For ambitious Australian stylists, where the only population of California – 39.4 million – exceeds that of Australia (26.7 million).

“This tariff thing will not brake that enthusiasm,” said Renuka Kimber, co-founder of Luxury Kimber. “But it could force us to adapt the way we do it.”

Australian brands are looking further and could lean stronger on other markets. Christian Kimber grew strongly in Asian markets such as Korea, Japan, Singapore, Malaysia and Indonesia, as well as Kuwait and Dubai in the Middle East.

Kimber also sees potential advantages for some brands. Christian Kimber is made in Italy and Portugal and the rates on the European Union (20 percent) are lower than that of low -cost production hubs such as Cambodia (49 percent).

The American fashion retailers were one of the first to be affected by the Trump rates: Nike, Lululemon, Abercrombie & Fitch and Gap, who acquire almost half of their goods in Vietnam or Cambodia, were among those who suffered a significant actions price after Thursday’s commercial session.

“In a sense, our production approach could play our advantage,” said Kimber.

“The brands that have maintained types of ethical production standards and have avoided going to low-cost production hubs that could have good processes, but on a scale there is an inconsistent quality in this regard- [those hubs] They will probably be struck much harder. “

“It is an interesting nuance for this luxury conversation that many people will miss.”

In the meantime, the brand will consider what it can do for prices, goods and shipments. “It is still a big piece of our margin and we don’t want us customers to suffer, but at the same time we are a commercial enterprise and we cannot lose money,” said Kimber.

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Trump’s “Liberation Day” announcement also included the removal of the commercial exemption of “de minimis”, which allows inferior shipments to $ US800 ($ 1280) to enter the country exempt from duty. The move makes it more expensive for Ultra-Cheap Shein and Temu Chinese retailers to send low-cost goods in the United States, which are now subject to a rate of 30 % of the value of the items or $ US25 an article, a rate that increases to $ US50 after 1 June.

As the highest costs are rippled between the international supply chains and destabilize the global economy, those who will end up paying higher prices are Trump citizens.

“Everyone is clear: everything indicates the increase in inflation in the United States and the need to invest in other markets,” said Quiinny-James.

“The tentacles of the American economy are so rooted … [Trump] It does not seem to understand that people who hurt the most are us consumers. “

Close to home, local brands and retailers are trying to increase prices for Australian customers. Philpott is reluctant to make hasty decisions to raise prices and wants to continue decades relationships with suppliers in China.

“We are not panicking,” he said. “We will let the dust also settle down a bit. The worst thing we can do is be reactionary.

“We will not go away from [factory partnerships] O. we will understand how to overcome it together. “

What can Australian consumers do? The answer is the one we have already heard before.

“Buy Australian,” said the characteristic FCC-James. She and Philpott both urged the Albanian government to look more seriously in strengthening local production, which Philpot said she had fought with the invalocated in high -tech equipment, leading to a decrease in the workforce.

“It’s such a simple message, but I don’t think we do it well in fashion,” said Quantlance-James.

“We are good enough to be aware of where our food comes, but we have to do a better job in telling the stories about the supply chain in our Australian fashion activities, which are actually some incredible brands. We must not go abroad.”