Americans and people from outside the US alike are watching President Donald Trump's second term closely. Some are optimistic that his agenda and policies will lead to significant gains for the country, while others remain cautious and fear that it may set the nation back — especially as the Republican president continues to push his “America First” protectionist approach.

Following his earlier tariffs on goods from China, Mexico, and Canada, Trump, now 78, announced the "Liberation Day" tariff on Wednesday, 2 April. This sweeping policy affects more than 180 countries and includes new levies targeting some of the fashion industry’s biggest manufacturing hubs. Under the new rules, a baseline tariff of 10 percent will be imposed on all imported goods.

A clear example of the impact is how these tariffs threaten global production. China, a dominant force in the fast-fashion industry due to its efficient and profitable manufacturing ecosystem, now faces a 54 percent import duty.

According to a report from The Guardian, China’s innovation hubs are a key resource for outsourced production. However, Shein, one of China’s leading ultra-fast fashion companies, has stated that it will not withdraw from the U.S. market despite the new levies.

In an interview with Agence France-Presse, Shein Executive Chairman Donald Tang said the company will not focus on customs policy but “will find a way to deliver the goods,” noting that Shein’s flexible business model allowed it to navigate past global disruptions, such as the COVID-19 pandemic.

Vietnam, which produced more than half of Nike’s footwear in 2024, was slapped with a 46 percent tariff — making it the hardest-hit among the 11 ASEAN member states. The Philippines faces a 17 percent duty, while Singapore and Timor-Leste have the lowest at 10 percent.

Similarly, Bangladesh, where garment manufacturing accounts for 80 percent of the country’s total exports, now faces a 37 percent tax. The European Union, which represents at least 70 percent of the global luxury goods market, will be subject to a 20 percent tariff.

The U.S. fashion industry has voiced strong opposition to the move.

“We are deeply disappointed by the Trump administration’s decision to impose new tariffs on all imports,” the United States Fashion Industry Association said in a statement, warning that the policy would especially harm American fashion brands and retailers.

The tariffs officially took effect at midnight following the announcement.

Fashion stocks decline

The following day, CNN Style reported significant market impact: shares of Lululemon fell more than 10 percent, while Nike and Ralph Lauren shares declined by 7 percent. These losses exceeded a nearly 4 percent dip in S&P 500 futures.

Despite the backlash, Trump defended the policy in a speech, arguing that the tariffs are designed to “pry open foreign markets and break down foreign trade barriers.” He asserted that the move would boost local production, increase competitiveness, and ultimately lower prices for American consumers.

“This will be, indeed, the golden age of America — it’s coming back. We’re going to come back very strongly,” he said.