Marketplace Say goodbye to affordable clothing
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Apr 23, 2025 
Kristen Schwab, a Marketplace reporter specializing in the apparel industry, discusses the looming impacts of Trump's tariffs on clothing prices. With 98% of clothing in the U.S. imported, especially from China, fast fashion could soon become less affordable. She highlights how tariffs are complicating the supply chain and affecting consumer behavior. The conversation also touches on the wider implications for the services sector, housing market dynamics, and the challenges businesses face amid economic uncertainties.
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High Tariffs Create Economic Uncertainty
- Tariffs on most Chinese imports to the U.S. could be set between 50 and 60 percent, still very high.
- These tariffs inject significant uncertainty and risk into the economy, affecting various sectors.
Tariffs Indirectly Hurt Services Sector
- The U.S. services sector, though not directly targeted by tariffs, will be indirectly hurt.
- Retaliatory tariffs on goods affect services because goods producers rely heavily on services like banking and accounting.
Restaurants Cut Back on Services
- Restauranteurs affected by tariffs are cutting back on accounting services and scaling back expansion plans.
- This contraction signals economic strain spreading to service providers like accounting firms.