As global trade policies shift, the fashion and beauty industries find themselves navigating an increasingly complex landscape. With rising tariffs, evolving legislation, and shifting consumer demands, brands must rethink their strategies to remain competitive.
Kiko Gaspar, an strategy expert in communications with international experience in fashion, lifestyle, and design, offers insight into these transformations and their impact on global brands.
The Trifecta of Challenges Facing Fashion and Beauty
The fashion and beauty industries are contending with a trio of pressing challenges. First, increasing tariffs on Chinese imports imposed by the U.S. and EU are raising costs for companies that rely on overseas manufacturing. Brands which dominate fast fashion, are particularly affected. As production costs rise, the price of goods is expected to follow, pushing consumers toward more affordable alternatives.
Second, the growing popularity of secondhand fashion is reshaping consumer behavior. Younger, environmentally conscious shoppers are prioritizing sustainability, leading to a boom in resale platforms. Legislative measures, such as the Americas Act, are further fueling this trend by offering incentives for recycling and reuse, aligning with the global push toward sustainability.
“The evolving landscape of tariffs and legislation is transforming the fashion industry,” says Kiko Gaspar. “Fast fashion is under increasing pressure, while secondhand fashion is emerging as a viable alternative. This is a pivotal moment for brands to embrace resale and rethink their approach.”
Tariffs and Sustainability: A New Market Dynamic
The impact of rising tariffs on fast fashion is undeniable. Stricter regulations on Chinese imports are forcing fast fashion retailers to reassess their pricing models or absorb narrower profit margins. Higher costs for budget-friendly fashion could significantly affect millions of consumers who rely on these products.
“With tariffs creating financial pressure, we’ll likely see a shift in consumer behavior,” Gaspar notes. “Brands must innovate and explore new strategies to stay relevant in an increasingly price-sensitive market. Those heavily reliant on Chinese manufacturing face both a challenge and an opportunity to diversify their supply chains.”
Governments are also actively supporting sustainability initiatives. The proposed Americas Act introduces tax incentives for businesses in the secondhand fashion sector, encouraging long-term growth for resale platforms and eco-conscious brands.
At the same time, fashion companies are under greater scrutiny due to stricter environmental regulations. In March 2025, the EU implemented supply chain transparency requirements, mandating that brands disclose their entire production process, from raw materials to finished goods. While this initiative enhances consumer trust, it also imposes additional financial strain on companies already contending with higher costs.
The Rise of Secondhand Fashion and AI-Driven Resale
As fast fashion grapples with these obstacles, the resale market is poised to flourish. Platforms like ThredUp, Poshmark, and Vestiaire Collective are capitalizing on the rising demand for affordable, sustainable fashion.
“The growth of secondhand fashion isn’t just a passing trend—it’s the future,” Gaspar asserts. “Consumers are increasingly aware of their environmental impact, and brands must adapt. As tariffs disrupt fast fashion, resale platforms are uniquely positioned to meet the needs of modern shoppers while promoting sustainability.”
Additionally, AI-driven resale platforms are transforming the shopping experience. Advanced technologies improve product selection, quality control, and personalization, enhancing customer satisfaction and attracting new buyers. AI-powered trend forecasting tools also help brands anticipate demand shifts, reducing unsold inventory and waste.
The Future: Innovation and Circular Design
Fashion and beauty brands are also under mounting pressure to integrate circular design principles. Companies are investing in recyclable materials, take-back programs, and other sustainable initiatives to encourage responsible consumption.
As digital tools become essential for streamlining operations and adapting to new market dynamics, the future of fashion lies at the intersection of sustainability and innovation.
With extensive experience working with global icons like Vivienne Westwood and supporting emerging Ukrainian creatives on the world stage, Kiko Gaspar understands the industry’s evolving landscape firsthand.
“These changes mark a new era for fashion—one that demands agility, consciousness, and forward-thinking strategies,” Gaspar concludes. “Now is the time for brands to pivot, innovate, and embrace the opportunities created by today’s challenges.”
As global trade policies continue to evolve, the fashion and beauty industries must remain adaptable. By embracing sustainability, transparency, and innovation, companies have the chance to build a profitable future that is socially and environmentally responsible.
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