What lies ahead for the industry?
Fashion in 2025 navigates a delicate balance between political influence and economic turmoil. But what are the challenges and shifts shaping the industry? What lies ahead for the future of fashion?
Recent political events and ongoing wars (including the much-awaited but uncertain ceasefire in Gaza) have generated significant economic challenges, while Trump’s re-election in the US signals an unstable and tumultuous year ahead. Sustainability, once a key focus, has largely disappeared from the agenda, and consumer trust continues to erode.
Struggles shaping the fashion in 2025
If 2024 was a difficult year, 2025 offers little reprieve. According to a report by McKinsey & Company, 80% of fashion executives foresee no improvement in the global fashion industry this year. Furthermore, Trump’s re-election has sparked deep concerns across multiple fronts, with profound implications for the fashion world.
Trump’s proposed tariff hikes threaten to reshape trade flows. As The Times aptly headlines: “The Fashion World Fears High Tariffs”
President-elect Donald J. Trump has proposed a tax of at least 60% on goods from China—a move that could devastate small American brands. Counter-sourcing will likely become one of the biggest struggles for these businesses.
According to the National Retail Federation, Trump’s tariff proposals could increase apparel prices by 12.5% and footwear prices by 18.1%. If Chinese-made goods are hit with higher tariffs, the cost of everything from mobile phone cases to Barbies could skyrocket. In this scenario, pricier trousers may be the least of consumers’ concerns.
Most critically, “The idea that a substantial American apparel manufacturing industry could be revived overnight is a myth,” as designers point out. There are neither enough skilled workers to support such a transition, nor the infrastructure to sustain it. (source)
Yet, Trump’s politics won’t stop at America’s borders—European markets will also feel the strain.
2025: Market trends
The negative environment predicted a year ago has now taken hold. Consumers, having experienced a period of high inflation, are increasingly price-sensitive. Meanwhile, the acceleration of climate change and a marked shift away from sustainability further compound the challenges.
Economic uncertainty, geographic disparities, and shifting consumer behaviours dominate the fashion landscape. To remain relevant, brands must adapt—not by chasing fleeting trends but by proving their lasting value. Consumers demand more than just products; they seek alignment with their personal values and a genuine commitment to purpose.
The way forward
Fashion in 2025 resides at the intersection of political influence and economic turmoil. In a climate of instability, the question isn’t merely about survival but about meaningful evolution. Brands that centre their strategies on value and integrity will stand out. This means doubling down on quality, fostering transparent communication, and investing in long-term relationships with both customers and suppliers.
As we navigate 2025, let’s shift the narrative. Let’s champion resilience, creativity, and authenticity. In the face of adversity, fashion has the unique power to inspire and connect. Let’s make that the legacy of this challenging year.
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