Latest news with #ShengLu
New York Times
09-04-2025
- Business
- New York Times
Wirecutter's Expert Advice on How to Navigate the New Tariffs
Don't expect prices to spike immediately. Many companies have been preparing for tariffs by steadily increasing prices over the last few months and have existing stock to sell through. But experts say many companies will almost certainly have to raise prices eventually, even if their products are not produced abroad. Global supply patterns mean that almost any product will use parts or materials from one of the countries subject to high tariffs, even if they're made elsewhere. Nearly anything you buy will likely be affected by tariffs in some way. About a third of consumer electronics are made in China. And 75% of America's clothing imports come from Asia. Some furniture companies, like Restoration Hardware, import as much as 76% of their products from Asia. Apple still makes most of its iPhones in China, which is now tariffed at 104%. Analysts have said that if Apple passed on tariffs to its customers, the iPhone 16 could increase from $799 to more than $1,100 (and that estimate when the proposed tariff rate was 54%, not 104%). But it's unlikely that buyers will bear the full brunt of that higher tax. Apple is reportedly looking to shift some iPhone production to India to soften the impact of tariffs while it seeks an exemption from the Trump administration (as it did in Trump's first term). Still, the uncertainty has spurred anxious shoppers to panic-buy iPhones in the days leading up to the day the tariffs took effect. For the record: We do not recommend panic-buying anything. When it comes to clothing and footwear, much of which is imported from southeast Asia, we can expect to see higher prices on newly launched seasonal apparel rather than dramatic increases on current items. Shoppers will also likely see the cost of basics like underwear and T-shirts go up, because demand for those items is consistent, Sheng Lu, a professor of apparel studies at the University of Delaware, told me. And shoe prices will likely increase, because most shoe factories are located in countries that have been hit by the highest tariffs, like China and Vietnam. Even businesses that make their products in America will be affected by tariffs. North Carolina-based furniture company Sabai, maker of one of Wirecutter's top sofa picks, said in an email to customers on April 6 that while the company is 'fortunate to be somewhat insulated from the impact of tariffs, as least compared to most furniture companies,' the company still expects its costs to increase 5-10% due to tariffs by summer, which it will 'likely' have to pass on to buyers. 'It is essentially impossible to source all the materials necessary to create our products domestically, while being able to offer them to you at anywhere near the price we currently do,' the company said in its email. 'The US manufacturing industry doesn't have the ability and infrastructure to make some of our components, requiring us to source from overseas. For context, some of these components cost between 3-5 times more to produce in the US, if they are available at all.' Meanwhile, some companies may stop selling specific products in the U.S. altogether. Laptop maker Framework said earlier this week that it will pause US sales of certain configurations of the Framework Laptop 13, our repairable Windows laptop pick, due to the 10% baseline tariff that went into effect April 5. Framework said that the tariff increase on Taiwan meant the company would lose money on sales of its base-model laptop. And while Nintendo hasn't raised the $450 price of its just-announced Switch 2, which goes on sale June 5, preorders for the much-anticipated gaming console have been delayed due to tariff uncertainty. Preorders were originally slated to begin April 9, but Nintendo said it would update timing 'at a later date' to 'assess the potential impact of tariffs and evolving market conditions.'
Yahoo
07-04-2025
- Business
- Yahoo
US officials make big decision that could transform the fashion industry: 'Unleash American energy'
The Environmental Protection Agency has launched a series of actions deregulating United States industries and their environmental impact. These actions affect the fashion industry and could halt its progress toward becoming more sustainable, Vogue reported, hurting both the planet and people. The push includes 31 initiatives to "unleash American energy," according to the EPA. Reconsidering regulations on power plants, regulations on the oil and gas industry, the Mercury and Air Toxics Standards, and the Greenhouse Gas Reporting Program are part of the plan. Eliminating the Greenhouse Gas Reporting Program, which requires about 8,000 facilities to report their emissions annually, would weaken regulation on textile mills' and apparel factories' pollution, Vogue warned. Vogue also cautioned that ending the Mercury and Air Toxics Standards will further deregulate pollution from these factories. Other deregulations could harm air quality near fashion-production facilities, while water quality deregulations could be detrimental to the areas around these facilities, too, Vogue reported. Fashion production often relies on "water-intensive dyeing and finishing processes," and without regulation, these processes could impact water resources. Deregulation in the fashion industry has consequences for the future of both the environment and the industry. The fashion industry accounts for 10% of global carbon emissions, and textile dyeing is the world's second-largest water polluter, according to Business Insider. Pollution could increase without regulation, and Vogue stated that companies must determine whether to save money in the short term or embrace sustainability in the long term. "EPA deregulations could not only lead to increased pollution and harm ecosystems but also discourage companies from innovating new technologies for more sustainable production," University of Delaware Fashion and Apparel Studies director Dr. Sheng Lu told Vogue. Becoming more sustainable costs more now but could pay off later and improve the reputation of the fashion industry, Vogue argued. Should the government be able to control how we heat our homes? Definitely Only if it saves money I'm not sure No way Click your choice to see results and speak your mind. Despite EPA deregulations, some companies are choosing to prioritize the environment. Danish company Rodinia Generation manufactures "low-carbon clothing" using technological solutions to reduce textile waste and pollution. Kenyan brand Maisha by Nisria upcycles discarded textiles into high-fashion pieces. The Higg Index can also hold the fashion industry environmentally accountable. The tool allows companies to assess their social and environmental impact, helping them "identify risks, reduce waste and implement more sustainable practices," Vogue wrote. "The real challenge isn't just whether we regulate more or less, but how we create a business environment where circularity, waste reduction and smarter material use drive profitability," Dr. Sheng Lu said to Vogue. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Japan Times
02-04-2025
- Business
- Japan Times
U.S. tariffs on Vietnam would be a blow to Nike and other sportswear brands
Nike could soon face another blow in its effort to revive its brand and reverse a long decline in sales: U.S. tariffs on imports from Vietnam. On Wednesday, U.S. President Donald Trump is expected to announce which countries and products he will target with a new round of tariffs aimed at encouraging domestic production and coaxing other nations to buy more U.S. goods. Vietnam, which runs a $123.5 billion trade surplus with the United States, is a prime target. Nike is one of several sportswear brands heavily reliant on Vietnam as a production site and higher tariffs would force the company to absorb higher costs or hike its prices at a time when it is already discounting some items to clear inventory. Nike produced 50% of its footwear and 28% of its apparel in Vietnam in its 2024 financial year, according to its annual report. Rival Adidas is slightly less exposed, relying on Vietnam for 39% of its footwear and 18% of its apparel. The average U.S. tariff rate on footwear from Vietnam is 13.6%, while the rate on apparel is 18.8%, according to calculations based on January trade data made by Sheng Lu, a professor of fashion and apparel studies at the University of Delaware. "If tariffs are extended there, then Nike's got a problem," said Morningstar analyst David Swartz. Nike and Adidas are hardly alone. Vietnam has become a hub for high-tech running shoes, sportswear and outdoor apparel as brands have sought to reduce exposure to China. Lululemon, Columbia Sportswear and Amer Sports, which owns Salomon and Arc'Teryx, count Vietnam as their top manufacturing country. But the potential tariffs come at a critical moment for Nike, which has lost market share of late to competitors viewed as fresher and more innovative, like On and Hoka. In a quarterly earnings call last month, Chief Financial Officer Matt Friend said Nike's revenue was expected to continue to fall next quarter. That outlook factored in current tariffs, said Mari Shor, senior equities analyst with Columbia Threadneedle Investments, which holds Nike shares. "But what if it gets worse?" Some smaller, younger sportswear brands are even more exposed to Vietnam. Fast-growing running brand On in 2024 sourced 90% of its shoes and 60% of its apparel and accessories from the country. On shoes are already expensive, selling for $130 to $330 a pair, and Samuel Wenger, the brand's chief operating officer, said tariffs were among the factors On considers when deciding on price. "Our premium brand gives us the ability to adapt our pricing thoughtfully," he said. Average U.S. prices of sneakers have already risen by 25% since 2019, partly because of rising production costs, said Beth Goldstein, footwear industry analyst at market research firm Circana. While U.S. sales of running shoes have risen 16% to $7.4 billion since 2021, according to Circana's Consumer Tracking Service, U.S. consumer confidence recently hit a four-year low, suggesting more price increases could prove hard to swallow. Moving production out of Vietnam is no simple matter. Other Southeast Asian countries, such as Cambodia and Indonesia, could face tariffs too, and production costs are already rising there. Factories in Cambodia are charging 5% to 10% more as they get more orders from retailers looking to shift production from China or Vietnam, said Michael Yee, CEO at apparel and accessories sourcing company MGF Sourcing in Hong Kong. Nike, Adidas and Amer Sports declined to comment on questions about Vietnam tariffs. Lululemon and Columbia Sportswear did not reply to requests for comment. The good news, say experts, is that tariffs on imports from Vietnam — particularly for apparel — are unlikely to be as steep as those in China. Leaders in Hanoi have taken several steps to stay in Trump's good graces, promising more imports from the U.S., lower duties, and allowing Starlink — the satellite company owned by the U.S. president's adviser, Elon Musk — to offer its internet services in the country. The Trump Organization, meanwhile, is partnering with Vietnam on potential investments in hotel, real estate and golf course projects possibly worth billions of dollars. "Vietnam has proven its ability to play the geopolitical game very skillfully," said T. Rowe Price portfolio manager Johannes Loefstrand, who runs a Frontier Markets Equity strategy weighted toward Vietnam stocks. Wilbur Ross, who served as commerce secretary in Trump's first administration, said the president had generally good ties with Vietnam and had no reason to hit it hard with tariffs that would be felt on main street. "People notice the cost of apparel because they buy it fairly frequently," Ross said.
NBC News
09-02-2025
- Business
- NBC News
New clothes feel cheap? They really don't make them like they used to
You're not imagining it: Well-made clothing is harder to come by. The U.S. fashion industry is having a hard time maintaining quality standards amid stiff competition from overseas rivals and supply-chain shakeups. Twenty-seven percent of textile and apparel professionals reported that ensuring consistent quality was 'difficult' or 'very difficult' over the past year, up from 23% in 2024, according to a recent survey the product auditing firm QIMA provided to NBC News. 'There has been a significant reduction in the quality of the fabric for a number of the major brands and retailers,' said Margaret Bishop, a textile development and marketing professor at the Fashion Institute of Technology in New York. She said the decline intensified during the recovery from the pandemic, when apparel makers scrambled to untangle disrupted supply chains and contended with weak sales during global lockdowns. The corner-cutting is partly a tradeoff on price — a bet that the fashion industry has placed on inflation-weary shoppers' willingness to accept lower-quality garments that don't break the bank. Since 2019, consumer prices overall have risen 26%, food is up 30% and cars are up 25%, but apparel prices have inched just 6% higher. There has been a significant reduction in the quality of the fabric for a number of the major brands and retailers. Margaret Bishop, Fashion Institute of Technology Clothing retailers 'know if they raise the price, they lose consumers,' said Sheng Lu, a professor of fashion and apparel studies at the University of Delaware. While a basic wardrobe of clothing and shoes is essential, households typically approach such purchases as discretionary — nice-to-haves, at least relative to keeping their cars filled with gas and their fridges stocked with milk and eggs. And over the past year, consumers have repeatedly proved to be laser-focused on value, chasing deals and discounts wherever they can find them. When it comes to garments and footwear, Americans often find the best prices among sellers overseas, including the China-linked e-commerce giants Shein and Temu. The ultracheap foreign retailers have given domestic rivals such a run for their money that they drew a crackdown from the Biden administration, and the Trump administration's new China tariffs could crimp them further. China is already the largest exporter of apparel to the United States, and QIMA's factory inspections found the failure rate, or share of textile and apparel products with too many defects for market, rose to 13.7% last year from 12.7% in 2023. As many apparel brands move more production out of China to reduce their labor costs and exposure to tariffs, they're gravitating toward countries with even higher failure rates: India's is 21.2%, Cambodia's is 16.6%, and Indonesia's is 14.2%. 'Someone who's running this factory maybe doesn't have three decades of experience' in many of the emerging garment production markets, said Joseph Ng, CEO of Shift Fashion Group, a consultancy that works with manufacturers. 'It takes a long time to get a large enough workforce to the point where they know what to do exactly.' Those issues are compounded when workers are pushed to generate quantity over quality, he added. The silver lining is that overall global quality levels have remained relatively flat in recent years, QIMA said, and failure rates in several key manufacturing countries improved noticeably last year. Nevertheless, the environment spurred 'a race to the bottom,' Bishop said, at a time when labor and raw materials costs were rising rapidly. Demand for both domestic and foreign fast-fashion brands' low-cost apparel has surged. From 2020 to 2024, the top three global fast-fashion retailers — Shein (based in China), Zara (Spain) and H&M (Sweden) — nearly tripled their U.S. market share, according to data from Euromonitor. Many other domestic fashion brands have struggled to compete, resorting to promotions to prop up sales and cost-cutting to offset the impact on their profit margins. Fabric accounts for 60% of a garment's total production cost, Lu estimated, with labor typically clocking in around 30% and trim — zippers, buttons or decorative details — making up the rest. So when retailers look to save money, fabric is one of the first components to get downgraded. Quality can vary widely even within a single brand's clothing line, depending on where each of its items is made, Ng said. Large retailers 'use buying houses that will actually produce in different regions, producing different products,' he said. That's one reason a brand might simultaneously produce high-quality, well-fitting T-shirts and shoddy jeans with haphazard stitching. The biggest misconception when it comes to fashion is that luxury goods and high-end goods mean quality. Joseph Ng, CEO of Shift Fashion Group Julia Hughes, president of the U.S. Fashion Industry Association, acknowledged anecdotal reports of quality concerns in a statement but said that 'for our members — well-known brands and retailers — they maintain the same or better quality requirements today.' For shoppers looking for the best bang for their buck, it can make for a frustrating experience. To identify well-made clothing, Bishop recommends taking the time to examine each garment closely in person. Stitching and fabric are two key indicators of overall quality, she said, adding that heavier fabrics tend to be more durable than lightweight ones. Bishop also suggests holding garments up to the light to check for small holes or uneven yarn tension. Stitches should be tight, with ideally eight stitches per inch. Avoid garments with loosely sewn buttons and fabrics that lose their shape after they're stretched, she advised. 'There's a myth that if something's made from synthetic, it's bad, it's cheap,' Bishop said. Nylon is very durable, for example, and polyester is great at wicking sweat. Ng said: 'It's really about the right application. When it comes to athletic wear, you don't want cotton leggings.' He also cautioned that steep prices don't necessarily signify better craftsmanship. 'The biggest misconception when it comes to fashion is that luxury goods and high-end goods mean quality,' Ng said. He added that 'there is a movement starting to happen where consumers want higher-quality clothing.' Consumers are increasingly valuing repairability, durability and quality, Euromonitor's market research has found, a trend that coincides with growing interest in secondhand clothing. The more shoppers are turned off by poorly made, low-cost garments, the more brands have an opportunity to differentiate themselves on 'quality and service,' said Marguerite LeRolland, an apparel and footwear industry manager at Euromonitor. That, in turn, can help 'justify higher prices and fewer promotions,' she said.
