On May 10, 2019, the Trump Administration officially increased the 10 percent Section 301 punitive tariff on $200 billion imports from China to 25 percent. Earlier in the week, through his tweet, President Trump further threatened to impose the punitive tariff on all imports from China, including apparel and other consumer products. The escalating U.S.-China tariff war has attracted new attention to the outlook of China as a sourcing destination for apparel. It is also of particular concern that the punitive tariffs will lead to a price hike in the U.S. market, hurting both fashion retailers and consumers. 

By using EDITED, a big-data tool for the fashion industry, this article intends to explore how U.S. apparel retailers are adjusting their sourcing strategy for “Made in China” in response to the tariff war. Particularly, based on a detailed analysis of the real-time pricing, inventory and product assortment information of more than 90,000 fashion retailers and their 300,000,000 apparel items at the stock-keeping-unit (SKU) level, this article offers more insights into what is happening in the U.S. retail market beyond what macro-level trade statistics typically can tell us.

Three findings are of note: Read More