What to Know About Trump’s Tariff Plan on Fast Fashion and E-commerce 

By Yifan Wang, Stevenson High School Senior, Former GLMV intern

In an era where same-day delivery and viral TikTok trends dominate how we shop, few of us stop to consider the true cost of our convenience. But behind every $5 T-shirt and budget tech gadget lies a secret price — one that lands on our environment, labor practices, and now, our wallets. Now, with President Donald Trump proposing a sweeping new policy of tariffs to raise import charges by 10% across the board — and as much as 60% on Chinese goods — the economies of drop-shipping and fast fashion might be disrupted more than ever. The tariffs not only raised prices across many e-commerce platforms like Shein, Temu, Ali-express and Amazon storefronts, it is also forcing both businesses and consumers to rethink our purchasing decisions.
The Real Price of Cheap Clothes
Fast fashion– the rapid production of low-cost, trendy clothing designed for short-term uses–thrives on speed and scale, creating a culture of excess. Brands churn out cheap, fashionable clothes by the week, produced in countries where laborers are paid below minimum wages and pollution regulations are more of an afterthought. One of the largest importers of clothing, the United States, imports billions of dollars' worth of clothing annually, much of it being produced in China, Vietnam, and Bangladesh. Although this flow spurs American consumer culture, it does so at the cost of labor exploitation onto foreign ecosystems and workers.
A report in Nature Reviews Earth & Environment reveals the extent of the damage: the fashion industry consumes 79 trillion liters of water and creates 92 million metric tons of waste every year, even more pollution than airline and shipping industries combined. Meanwhile, the United Nations Environment Programme (UNEP) suggests that the industry is accountable for nearly 2-8% of global carbon emissions, with recent studies suggesting that it is on the higher end.
Most of the clothing produced under the fast fashion model ends up in landfills or dumped into communities already burdened by industrial waste. Another problem that the U.S. is currently facing is the massive underutilization of clothing where customers miss out on USD 460 billion of value each year by throwing away clothes that they could continue to wear, and some garments are estimated to be discarded after just seven to ten wears. And despite "recycling" efforts, less than 1% of discarded clothing is recycled into new garments, according to the Ellen MacArthur Foundation.
While these cheap imports benefit shoppers and retailers, Trump's tariff increases can upset this model in its tracks. For fast-fashion retailers, a uniform 10% tariff — higher on Chinese products — could mean higher prices, supply chain dislocation, and domestic or alternate-market migration. And the real question here for us consumers and businesses is whether American production is prepared to fill this gap.
Drop-Shipping: Convenience at a Hidden Cost
Drop-shipping, a feature of modern e-commerce, allows entrepreneurs to sell products without stock — often buying directly from Chinese manufacturers. The ability of drop-shipping makes it easy to scale and enables thousands of small firms to compete in the online marketplace.
But this convenience comes at an undischarged cost: increased carbon emissions from long-distance shipping, packaging material wastage, and additional reliance on foreign production. Trump's tariffs would place this model in its rightful place by driving up the cost of imported goods — particularly Chinese goods, where most drop-shipping suppliers are based. And companies such as Temu and Shein would not only need to change their logistics but in sustaining the affordable brand image they’ve marketed to the public in the past years.
While proponents argue tariffs would lead American businesses to purchase domestically, critics warn higher costs might be passed on to consumers or push small shops out of business. A recent CNN Business report highlighted how tariffs would likely squeeze the margins of some small shops that use drop-shipping as one of their key strategies, potentially forcing them to shift production to other low-cost countries with lower tariffs like Vietnam or Bangladesh — a move that could potentially keep prices low.
Tariffs: A Quick Fix or a Long-Term Gamble?
Supporters of tariffs argue they will strengthen domestic manufacturing and reduce America's dependence on Chinese supply chains. “We’re bringing jobs back,” Trump said during a 2024 campaign rally, emphasizing economic nationalism as a key plank of his policy agenda.
Yet environmentalists and economists do not think there will be lasting impact. MarketWatch in an analysis found that while the tariffs may push the price up of imported products, they won't slow the rate of fashion's green desecration. Companies have very little incentive to change their model; instead, they can carry on producing somewhere else and maintaining the over-production-waste trend.
Critically, although tariffs raise costs, it's consumers and small businesses — not big corporations — that will be most likely to pay. Implementing the current tariffs is expected to drive up average household cost by approximately $1700 annually, the Peterson Institute for International Economics found.
Changing Consumer Habits: The Real Solution
The threatened tariff hikes are more than a political movement— they are a sign to rethink America's place in the global economy. Trump believes that higher tariffs will promote domestic manufacturing, reduce dependency on foreign labor, and create jobs. But in sectors like fashion and e-commerce, the path to sustainability is less straightforward.
If manufacturers shift production to the next nation with even lower wages to avoid tariffs, not much will alter in terms of workers' rights or the environmental degradation caused to the planet.
Or, if companies begin investing in domestic production and low-carbon technologies, there is hope for possibilities such as reduced emissions, tighter regulations, and even new jobs in green manufacturing.
But integrating a low-carbon transition into business models can involve up-front cost expenditures and a shift in operations. While this may reduce a company's short-term profits, it may build long-term resilience and consumer trust — especially as sustainability becomes more central to younger consumers. As for the latest, experts suggest that a shift toward mindful consumption for consumers holds more power than any policy, such as buying fewer, higher quality goods, supporting ethical brands and recycling correctly.
Why It Matters
For us Illinois residents, the impact of these changes in the world might appear distant. But as the demand grows and online sellers adjust, the repercussions will reach home. E-commerce stores might fold or raise prices while clothing stores might cut corners on quality to remain profitable. Consumers might begin rethinking the value of cheap goods in a high-tech, globalized world.
Consumerism has been the driving force of America's economy for decades. But if Trump's policies indicate a move away from globalization and towards reshoring, then we are confronted with a difficult question: Are we ready to pay extra for ethical, sustainable, and locally produced goods?
In this new economy, we cannot afford to disregard the cost of convenience. Whether driven by environmental urgency or political agendas, the choices we make everyday now will determine whether that reckoning takes the form of collapse or reinvention.
Sources:
- Nature Reviews Earth & Environment "Environmental Impact of the Fashion Industry."
- United Nations Environment Programme (UNEP), “Sustainable Fashion: Communication Strategy 2021-2024”
- MarketWatch (April 2025), "Could tariffs slow down fast fashion and help the environment? Don’t count on it”
- CNN Business (April 2025), "Shein and Temu just started raising prices ahead of new tariffs”
- Peterson Institute for International Economics (2024). "Why Trump's tariff proposals would harm working Americans”