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Tariffs Drive Apparel Prices Up 93%, Affecting Major Brands

6/7/2025

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Summary

Story summary

AlixPartners reports that tariffs could raise apparel and footwear costs, with men's sweaters increasing by 93% under a 145% tariff.
Brands like Nike and Under Armour have raised prices, resulting in a 13% year-over-year increase in footwear costs.
Apple is considering raising iPhone prices due to tariffs, potentially reducing U.S. sales.
Retailers are implementing strategies to manage tariff costs, but uncertainty persists in the market.

History

Historical Context

Current tariff increases on apparel and electronics echo the 1930 Smoot-Hawley Tariff, which raised duties on imports, triggering retaliatory tariffs and a trade war. This led to soaring prices and economic downturn. Today's brands face similar challenges, balancing costs and consumer demand amidst uncertain trade policies.

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Story summary

AlixPartners reports that tariffs could raise apparel and footwear costs, with men's sweaters increasing by 93% under a 145% tariff.
Brands like Nike and Under Armour have raised prices, resulting in a 13% year-over-year increase in footwear costs.
Apple is considering raising iPhone prices due to tariffs, potentially reducing U.S. sales.
Retailers are implementing strategies to manage tariff costs, but uncertainty persists in the market.

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