Under a Donald Trump presidency, a proposed 25% tariff on Mexican imports could lead to significant price increases on popular clothing brands. Companies such as Levi’s, Nike (NKE), and Patagonia, which source a portion of their products from Mexico, may have no choice but to pass those costs onto consumers.
While some U.S. manufacturers stand to gain from such tariffs, the overall impact could be detrimental to consumers. The proposed tariffs could reduce American spending power by an estimated $46 billion to $78 billion annually, according to the National Retail Federation (NRF). For example, the price of athletic shoes could increase from $50 to as much as $64.
The retail sector is already grappling with supply chain disruptions and rising operational costs, and additional tariffs could further squeeze consumers’ wallets.
During his presidency, Trump imposed tariffs on various imports, particularly from China, but did not enact a blanket tariff specifically targeting Mexican imports. Instead, his administration focused on renegotiating trade agreements, such as the United States-Mexico-Canada Agreement (USMCA), to alter trade dynamics with Mexico.
If tariffs were to return, it could potentially lead to decreased consumer spending as shoppers navigate rising costs. Ahead of the presidential election, we’ve compiled a list of seven major clothing brands that could see price increases if a tariff were imposed on Mexican imports with an example of an item that could possibly be hiked.
