Chinese designers were already facing unique challenges when it came to international sales, thanks to the country’s isolationist policy post-pandemic, slowed economic growth and slipping consumer sentiment. Then came the US’s tariffs.
The addition of prohibitive and unexpected tariffs has upended these brands’ one advantage: proximity to supply chains. A new tariff rate of 145 per cent on Chinese imported goods to the US is impacting Chinese brands at multiple levels, according to Louis Houdart, managing partner at consulting firm Mad, who works with leading global luxury groups. He says that not only has the local market been tough, but that many brands that had plans to expand overseas are now in “wait and see” mode. What can they do from here?
