WHEN YOUR $5 T-SHIRT COSTS DOUBLE: WHAT FAST FASHION’S DECLINE MEANS FOR SUSTAINABLE STYLE IN AMERICA

By Refilwe Queen, May 30th, 2025

Late-night shopping sprees of cheap clothing, fueled by endless scrolling and Incredibly low prices, might soon become a fond memory. A trade loophole, the “de minimis” rule, which allowed inexpensive goods to flood American shores duty-free, is facing closure. New tariffs on the small packages used by fast fashion giants will likely reshape the clothing landscape in the U.S., impacting not only consumers’ wallets but also sustainable style.

For years, the “de minimis” rule – a policy that permits goods valued under $800 to enter the U.S. without tariffs – enabled fast fashion to grow as large as it has. Brands like Shein and Temu leveraged this loophole to ship ultra-cheap packages directly to consumers. The savings on each individual shipment, multiplied by millions of purchases, kept prices low enough to enable the rapid consumption of disposable clothing. Now, as these tariffs go into effect, the 

economics that allowed this system to thrive are undergoing rapid change.

So, what happens when that once-irresistible $5 t-shirt jumps to $10 or $15? The sticker shock might initially turn people away, but it could also foster a more sustainable future. As rock-bottom prices disappear, consumers may turn their attention to alternatives that have been struggling to compete: secondhand stores, clothing rental services, and the growing number of American brands prioritizing ethical and environmentally conscious production. This pivot could inject enough momentum into the U.S. sustainable fashion industry for it to finally gain necessary traction.

However, this transition comes with pitfalls. Higher prices might cause some consumers to simply reduce their clothing purchases. Others could seek out alternative sources of cheap fashion from regions with even weaker environmental and labor standards. And if sustainable U.S. brands aren’t able to scale their operations or maintain reasonable prices, the gap between affordable and sustainable clothes could widen, disproportionately affecting low-income shoppers and slowing the adoption of sustainable practices.

Fast fashion has an undeniably problematic track record regarding labor and environmental ethics. Its model of rapid production and disposal is responsible for an estimated 10% of global carbon emissions and a staggering amount of water waste. Slowing the sale of disposable garments is a step in the right direction. But if production only shifts to other low-cost nations with lax environmental regulations, or if U.S. brands increase manufacturing without sustainable efforts, the environmental benefits might be minimal.

Conversely, this disruption could cause innovation within the fashion industry. Brands might invest more heavily in circular fashion models by exploring recycled and upcycled materials and on-demand production to minimize waste. The changes could also incentivize the reshoring of manufacturing jobs and lead to greater transparency and ethical oversight of supply chains.

However, trade policy shifts rarely result in straightforward outcomes. While tariffs are intended to reduce cheap imports, businesses might seek unethical and even illegal ways to circumvent increasing costs, which might result in the growth of counterfeit markets and other illicit trade. Some fast fashion brands might simply pass the higher expenses onto consumers without making any meaningful improvements in their sustainability.

The decline of cheap Chinese fast fashion would cause more than just a change in clothing prices; it could also cause a turning point in how America engages with clothing. Consumers might re-evaluate their relationship with trends and challenge brands to innovate rather than only offering the lowest prices.

For the American sustainable fashion industry, this presents both a challenge and an opportunity. Success depends on the ability of businesses to balance affordability with ethical production, scale operations without compromising quality, and educate consumers about the often hidden costs of clothing choices.

Soon, your wardrobe might evolve beyond mere style. It could reflect a conscious engagement with values and contribute to the future of sustainable fashion. As that $5 t-shirt increases to $10 or more, the question becomes: what will you choose to wear?

@refilwequeen