Trump's revocation of low-cost duty-free policies severely impacts fast fashion and Boeing, worsening the challenges faced by American manufacturing, while benefiting slow fashion and resale platforms.

Starting on May 2, 2025, President Trump of the United States will sign an executive order to remove the "low-value duty-free" tariff exemption on goods from China and Hong Kong, affecting imports valued under $800. This policy severely affects fast fashion brands like Shein and Temu, which rely on Chinese supply chains, forcing them to increase prices and reduce advertising spending. Boeing is facing a crisis as the U.S.-China trade war escalates, reflecting structural problems in American manufacturing. In contrast, slow fashion and second-hand resale platforms like ThredUp and The RealReal are benefiting from localized supply chains and sustainable practices.

Fast Fashion Model Hit Hard by Tariffs

In early April, the Trump administration issued an executive order announcing the cancellation of the "de minimis" tariff exemption for goods from China and Hong Kong, effective May 2. This policy ended the long-standing system that allowed Chinese fast fashion brands like Shein and Temu to ship millions of low-cost items to U.S. consumers duty-free. According to the U.S. Congressional Research Service, the number of low-value duty-free packages from China surged by 1,145% between 2018 and 2023, indicating the significance of this system for fast fashion e-commerce.

Under the new policy, all goods from China and Hong Kong valued under $800 will face import tariffs as high as 145%. Shein and Temu have announced price increases starting April 25 and have reduced their digital advertising spending in the U.S. According to The Guardian, these two companies were among the largest advertisers on U.S. social media platforms, but their advertising budgets have now been significantly reduced, affecting platforms such as Meta and YouTube.

Additionally, the stock prices of Temu and Shein's parent companies have been affected. According to InsightTrendsWorld, these companies' business models have long depended on tax avoidance and low shipping costs, and they now face structural challenges, requiring adjustments to their supply chains and pricing strategies.

Boeing Crisis Reveals U.S. Manufacturing Woes

Unlike the direct cost pressures faced by fast fashion brands, Boeing has emerged as a symbolic casualty in the U.S.-China trade war. As the largest U.S. exporter, Boeing was already struggling with quality issues and labor disputes. In January 2024, a 737 MAX had a door fall off during high-altitude flight, and an investigation revealed missing screws during assembly. This incident severely damaged Boeing's reputation and revealed long-standing quality control problems.

After the Trump administration imposed a 145% tariff on Chinese goods, Beijing retaliated with a 125% tariff on U.S. aircraft and components and ordered Chinese airlines to suspend Boeing aircraft deliveries. According to Bloomberg, as of the end of March 2025, Boeing still has 130 aircraft orders from Chinese customers, but the actual number may be higher. Chinese airlines like Juneyao Airlines have delayed receiving Boeing wide-body aircraft, further impacting Boeing's delivery plans.

The Los Angeles Times noted that Boeing has accumulated losses of $35.7 billion since 2018, with 80% of its capacity dependent on exports. Boeing's troubles are not solely a direct result of the trade war but also reflect long-standing structural issues in U.S. manufacturing. Since the 1980s, U.S. manufacturing has gradually outsourced and reduced technical manpower, leading to a skills gap and declining quality. To cut costs, Boeing outsourced key component manufacturing to Spirit AeroSystems as early as 2004, ultimately leading to quality control failures.

Slow Fashion and Resale Platforms as Potential Winners

As fast fashion faces severe setbacks, slow fashion and second-hand resale platforms are unexpectedly benefiting. Platforms like ThredUp, The RealReal, and GoodwillFinds, which focus on sustainability, environmental friendliness, and local supply chains, have long been overshadowed by fast fashion. Now, with rising costs and disrupted supply chains for fast fashion goods, consumers are turning to reasonably priced and ethically conscious alternatives.

ThredUp's strategy chief Alon Rotem noted that all clothing sold on the platform comes from U.S. wardrobes, rendering it nearly unaffected by international tariffs. ThredUp CEO James Reinhart further stated that the cancellation of the de minimis system is a "long-overdue market equalization measure" that aids in reducing the environmental harm caused by fast fashion.

According to Yahoo Finance, the circular economy and resale model are rapidly growing, particularly popular among Gen Z consumers. These platforms, through digital operations, offer rental, recycling, and resale services and collaborate with brands to promote sustainable supply chains. Government sustainability policies in states like California and New York further drive the development of such platforms.

Trump's revocation of low-cost duty-free policies severely impacts fast fashion and Boeing, worsening the challenges faced by American manufacturing, while benefiting slow fashion and resale platforms.

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