How a Harris vs Trump administration would impact fashion

The Biden administration has moved to close the de minimis loophole that enables low-value shipments (under $800) to enter the US duty free — a loophole ultra-fast fashion brands like Shein and Temu have been able to capitalise on.

Trump campaign

Trump has said he will impose a 10 to 20 per cent tariff on imports — and 60 per cent on Chinese imports. This would (theoretically) make fashion and textiles imports from overseas less competitive against American-made goods. But it could also increase the cost of the imported materials US manufacturers need to produce products, further driving up the cost of the Made in America label, as flagged by The New York Times.

Taxes

Harris campaign

Under the Harris-Walz administration, over 100 million working and middle-class Americans will receive a tax cut, per the campaign, which could help maximise spending power. In addition to extending tax credits to families, the administration plans for this to reach manufacturers, too. Harris has also set a goal of hitting 25 million new business applications by the end of her first term, with the view of uplifting small businesses and entrepreneurs. In essence, Harris plans to raise wages and create jobs.

The Harris administration also proposes a rise in corporate tax from 21 to 28 per cent, which would include fashion and apparel companies. Harris is an advocate for the Inflation Reduction Act introduced by Biden.

Harris has said she will follow Biden’s commitment not to raise taxes for anyone making under $400,000 a year. She also plans to raise the long-term capital gains tax rate from 20 to 28 per cent for those who earn $1 million-plus.

Trump campaign

During its first term, the Trump administration reduced corporate tax to 21 per cent. If elected, Trump plans to implement more corporate tax cuts. He’s said he will permanently extend the $1.7 trillion in tax cuts for corporations and individuals. Trump also plans to lower the corporate tax rate to 15 per cent for certain companies; it is unclear which will be eligible, or whether this will extend to the fashion industry.

Photo: Acielle/Style Du Monde

AI & technology

Harris campaign

Harris has said her administration would stick to the plans implemented by the Biden administration in his AI executive order, which was published in October 2023, and offers guidance — but not, as of yet, strict rules — for AI use, and calls for regulation. Brands have started to develop their own standards that align with the standards proposed in the order; under Harris, they would likely be able to continue on this path.