Global fashion markets rebounded sharply on Wednesday after U.S. President Donald Trump announced a 90-day suspension on newly imposed country-specific tariffs — with one key exception: China.
In a post on his social platform Truth Social, Trump revealed that instead of the severe tariffs announced last week, the U.S. would apply a temporary, universal 10% tariff on imports from all countries except China. Tariffs on Chinese imports, however, will soar to a staggering 125%, escalating tensions between the two economic giants.
The announcement sent fashion stocks soaring. Shares of Capri Holdings, owner of Michael Kors, jumped over 30%, while VF Corp (parent to Vans and Timberland) rose 28%. Levi’s surged 20%, Ralph Lauren climbed 14%, and Nike gained 11% — all reversing sharp declines from the previous week.
The White House framed the policy shift as part of a broader strategy to bring trade partners to the negotiating table. While countries like Vietnam, India, and Indonesia have shown openness to talks, the long-term future of the tariffs remains uncertain. Trump’s advisor Peter Navarro reinforced that tariffs may ultimately become permanent to boost U.S. manufacturing.
The fashion industry, heavily reliant on global sourcing, had been reeling from the April 2 announcement that included high tariffs on key apparel-producing nations. The sector scrambled to find alternatives and many compared the sudden disruption to the early days of the Covid-19 pandemic.
While the reprieve offers temporary relief, the dramatic increase in tariffs on Chinese goods — the largest source of U.S. clothing imports — remains a serious concern. Still, the pause offers fashion companies a chance to regroup and possibly negotiate more favorable trade terms in the months ahead.
