Proposed tariffs on imported goods from trade partners, such as China and Mexico, presents a challenge for retail brands with extra costs to import anything brands need including raw material and finished goods.
Brands like Steve Madden and ELF Beauty are already talking about plans to shift production to other countries or focus efforts on international sales to offset the impact of proposed tariffs. Brands have had to continuously navigate shifting supply chains due to the pandemic and the tariffs makes it difficult for young brands to find alternatives for supply chains. Remaining flexible and being prepared is key as policies and plans for tariffs change.