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By Jonah Grinkewitz

The Trump administration the de minimis tariff exemption which previously allowed for goods from China valued at less than $800 to enter the country tariff-free. Now, those shipments will incur a 54% tariff or a flat $100 fee per item.

This change to trade policy will affect companies like Shein and Temu, which had been able to sell cheap clothing items directly to U.S. customers. In response, Temu they will use a “local fulfillment” model to circumvent the tariffs.

To make sense of these changes, �鶹����AV News talked with Joy Kelly, an adjunct faculty member who teaches a course on fashion sustainability. 

Do you think that by reducing the availability of cheap clothing items, this policy change could have a positive effect on limiting fast fashion?

Joy Kelly: Time will tell. I hope so! The shift away from fast fashion is in the hands of the consumer. As long as they demand more low-priced, trendy garments, manufacturers and vendors will be willing to meet their demands.

The purpose of clothing is twofold: Functional and symbolic. At the most fundamental level, clothing protects us from elements and complies with rules and regulations. Social expectations and customs influence clothing choices. Through artistic expression and calculated choices, our apparel, accessories and footwear compositions communicate who we are and what we believe in. What we wear shapes the perceptions of others.

Fashion is more than what we wear; it is ever-changing styles that reflect social, economic, political and cultural shifts. This continuous change, fueled by technological advances, the internet and social media, provides unlimited options, low prices and accessibility. Overconsumption!

Social media influencers and affordability prompt fashion consumers to seek out dupes (duplicates). Fast fashion retailers capitalize on the desire to remain on trend at an affordable price. They offer more affordable pricing that appeals to value-conscious consumers. Out of the desire for more upscale designs at a low retail price, fast fashion continues despite the harmful environmental impacts. Quantity over quality! Knock-off designs, poorly manufactured and rapidly distributed to customers, flood closets and landfills. 

Temu recently on their plans to increase prices due to tariffs by employing a "local fulfillment model." Does this essentially mean they can avoid the de minimis tariff through a technicality?

It seems that they are saying the products are domestic. The Made in America labeling requirements are based on a percentage of the dollar value of the garment made in America.  So, partially completed garments imported can be finished here and meet that distinction. Companies like Shein and Temu have the financial resources to employ "creative compliance” with these regulations.

Companies like Shein and Temu often shift their production to capitalize on fashion trends. How can consumers stay trendy without partaking in fast fashion purchases?

Joy Kelly: Here are some options for staying on trend:

• Purchase new, timeless, high-quality items and plan to mend and alter over time. 
• Purchase items from online second-hand retailers like Thread Up, The Real Real or from independent business owners selling merchandise on Facebook Marketplace, Poshmark and Instagram
• Purchase garments from nonprofit thrift stores such as CHKD and Hope House.
• Purchase from a for-profit second-hand retailer, Goodwill.
• Shop estate sales in high-income neighborhoods.
• Swap clothing, such as party dresses, with friends.

The clothing manufacturing industry employs a lot of people in China and many US consumers have become accustomed to the availability of low-cost clothing. Could new tariff policies lead to a shift in this dynamic?

Joy Kelly: The Fashion Value Chain, also called the supply chain, demonstrates the functions and processes from conception to consumer. The specialization of labor and global interdependence led to outsourcing elements of the construction and distribution processes to countries like China.  

At this time, I do not think the U.S. has the skilled talent to manufacture clothing to meet the current demand. At some point, we shifted away from manufacturing and focused on the design and retail of clothing. The processes that go into producing textiles and manufacturing clothing are cheaper elsewhere. China produces 40% of global textiles and apparel, Bangladesh 16%, Vietnam 6.4% and India 4% (). Revoking the de minimis exemption for imports from China and Hong Kong may shift our demand to imports from Bangladesh, Vietnam, India and Turkey, which also have the infrastructure and human resources to manufacture textiles and clothing.

So, will consumers decrease their consumption of clothing? 

In a field study, we spoke with a local design group about the pending tariffs, and they said that they might explore other manufacturing options. Still, they will conduct business with the Chinese manufacturers with whom they have built a relationship over the years. The speaker said he has sewing machines in his warehouse, but no one can operate them. 

Why should we care about reducing fast fashion, and what are some affordable alternatives?

Joy Kelly: There are many reasons to be concerned about fast fashion. My top three are:  

1. Clothing is seen as disposable, creating a cycle of buying, wearing and disposing. Options for disposal are donation and the landfill. Low-quality materials are used in manufacturing the garments, so the garment's life span is short. The garments don't stand up to multiple washings. Holes, ripped seams and hems lead to the landfill.
2. Imagine the people working to produce the clothing. Brands and foundations seek to partner with transparent manufacturers that meet human rights standards. In developing countries, people must provide for their families and may willingly work in poor conditions because of limited options.
3. Ethical sourcing of materials with consideration for the health of our earth. The fashion industry contributes significantly to greenhouse gas emissions and waterway pollution.

Side note: Have you noticed the incredible rate at which storage units are being erected? To me, this is indicative of an overconsumption mindset. We want more because it is our right, and it's better! On the other hand, I favor the free enterprise system and see that competition and variety lead to better products and choices.

Do you think this policy change will level the playing field for U.S. fashion retailers?

Joy Kelly: Controlling the cost of goods is paramount for retail. This is a difficult question. How can retailers quickly obtain environmentally friendly, sustainably sourced and ethically produced garments and sell them at a low price? Consumers dictate the success of a business through purchasing decisions.

I hate to be cynical, but there are always loopholes and ways to circumvent duties and tariffs. A guest speaker once explained to my class that some countries' exporters have been known to ship cargo to a warehouse they own in another country, only to put it on another vessel to ship to the U.S. Additionally, it has been rumored that the Chinese Communist Party has provided financial support for Chinese exports.

Anecdotally, it seems like the younger generation (Gen Z and below) are more open to thrifting and fashion sustainability. Do you see this with your students?

Joy Kelly: A from Mintel showed that Gen Z and Millennials are more likely to care about sustainability. Additionally, they are more accepting of second-hand garments, footwear and accessories. 

I have seen a growing number of students who are excited about shopping “mom's closet” and upcycling thrifted finds. Unfortunately, this takes dedication and time. These options are not feasible when pressed for time or faced with a lack of clothing construction knowledge and equipment.

Many students frequent the Monarch Clothing Closet (in room 1007 of the Visual Arts Building and is open to students with a current �鶹����AV ID) and on-campus pop-up events. I believe they are not opposed to previously loved clothing and enjoy the individuality they get from upcycling or restyling a garment. One of our recent fashion graduates has a business that sells designer garments online through various platforms and participates in the Richmond and Raleigh Flea markets. She makes a living by thrifting locally and abroad and reselling through the internet and pop-up shops.