As the U.S. moves to end de minimis exemptions for goods from China and Hong Kong, fashion brands and logistics providers are bracing for major disruption. In a recent Fashion Dive deep dive, Alison Layfield, Director of Product Development at ePost Global, commented on how the fast-approaching policy change is already impacting supply chains.
“In the e-commerce logistics space, companies are already hearing that the wheels are in motion for fast fashion firms to begin shifting production,” Layfield said, adding that while moving production outside of China may help mitigate short-term costs, “shifting production requires coordinating with new suppliers, setting up production and navigating a host of logistical complexities.”
For retailers relying on de minimis to import low-cost, fast-moving inventory, the new policy could mean rising costs and slower delivery. “Even inexpensive items will be subject to tariffs, leading to increased costs,” Layfield explained. “In order to absorb these new costs, these retailers may raise prices for their customers.”
