If you’re a college student, you might’ve become a master at balling on a budget. There are date functions, themed parties, concerts, and so much more to attend. But they all require that one top in a color you don’t have or those cute shoes to match your new top.
That’s where fast fashion brands like SHEIN, Cider, or even Temu come in. These China-based companies boast unbeatably low prices for stylish products. To get free shipping, most buyers purchase multiple items to hit that required price minimum. College students take advantage of this as a result, with fast fashion becoming the one-stop shop for trendy outfits on a budget.
However, President Donald Trump has been fulfilling his campaign promise of imposing tariffs, which has the potential to drive up prices on products from foreign companies like SHEIN and even businesses at home.
Tariffs Are Everywhere in the News, But What Are They?
A tariff is an additional charge or tax on goods shipped from other countries. It’s usually calculated based on a percentage. So, if there’s a 20 percent tariff on bananas from Honduras priced at $2.00, the price will now be $2.40 due to the additional 40 cents applied.
Tariffs are meant to protect domestic industries from international competition. This is because goods made and shipped from other countries become more expensive and less accessible than those produced in the U.S. as a result.
Even though Congress has the power to “regulate commerce,” the president can impose tariffs to combat “unfair trading practices” of foreign countries or block imports threatening the health of the U.S. economy.
The Trump Administration clarified in a fact sheet that its newly established tariffs on imports from China, Mexico, and Canada were meant to maintain accountability for their promises. Ideally, the tax would incentivize these countries to halt illegal immigration and stop the flow of chemicals used to produce opioids and other drugs from entering the border.
How Do Recent Tariffs Make Things More Expensive?
Earlier this month, Trump signed an executive order enforcing a 10 percent tariff on all Chinese goods. With bipartisan support, he also eliminated a customs exemption that enables foreign items to avoid paying import duties or taxes.
Before, products under $800 could be brought into the U.S. without a tax or duty. Businesses such as SHEIN and Temu exploited this loophole since orders often fell under the $800 maximum because of their extremely cheap product prices. Repealing the customs exemption, therefore, ensured fast fashion companies would pay the import tax regardless of a product’s price.
However, on Feb. 5, the Trump Administration paused placing this import tax policy on China. Over a million packages piled up at the JFK International Airport due to orders being backlogged in customs as a result.
In addition, Trump announced he would place a 25 percent tariff on imported aluminum and steel, boosting the cost of canned foods and packaged groceries. He also intends to implement a tariff of the same percentage on automobiles, pharmaceuticals, and semiconductor chips. As a result, shipping delays and tariffs on other internationally-sourced goods will likely drive up prices.
Companies importing their products will cover some of the added costs. Yet, the U.S. Federal Reserve warned that Americans are also expected to help compensate for the recent tariffs by facing higher prices and potential inflation.
How Are Other Countries Responding?
Several countries have retaliated with tariffs on the U.S. due to Trump’s economic policies.
China announced a 15 percent tariff on U.S. coal and natural gas, plus a 10 percent tariff on crude oil, farming machinery, and cars. In addition, Canada threatened a 25 percent tariff on all goods from the U.S. However, this plan was paused.
Tariffs may not always be the talk of the town, as you can’t see their effects directly or instantly. They’re also not exciting — no one wants to talk about economic policy except for political science nerds like me; but every college student needs to buy items like groceries, gas, and clothes. All of these essentials will be impacted by tariffs.
Want to see more HCFSU? Be sure to like us on Facebook and follow us on Instagram, Twitter, TikTok, and Pinterest!