With new tariffs taking effect, fashion brands face fresh supply chain challenges. Beyond the immediate cost impact, companies must rethink sourcing, strengthen vendor relationships, and embrace digital tools to stay competitive. We spoke with Paul Magel, President of the Supply Chain Technology for the Fashion Industry at Computer Generated Solutions, about practical strategies to help brands navigate these changes and build more resilient operations.
Supply Chain 24/7: What are the biggest challenges fashion and apparel brands face as the new tariffs rollout?
Paul Magel: Tariffs are just another disruption in a long list of supply chain challenges from the past few years: a global pandemic, port strikes, geopolitical instability, and inflation.
The biggest challenge for fashion and apparel brands isn’t just the immediate cost impact from tariffs but rather how they structure their supply chain to remain agile in the face of uncertainty. Many brands still use antiquated supply chain solutions, which limits their ability to pivot quickly when costs rise. Those who haven’t yet invested in digital transformation or diversified sourcing strategies will feel the pinch the most as they struggle to balance margins while maintaining product availability and customer expectations.
SC247: What practical steps can brands take right now to mitigate tariff-related cost increases?
PM: It’s important for fashion and apparel brands not to overreact, especially given the near-daily changes we’re seeing in global trade policies.
Instead, they should take a structured approach to risk mitigation. This starts with gaining end-to-end visibility into their supply chain through digital tools that allow for real-time scenario planning. Additionally, beyond simply renegotiating vendor agreements, brands should take a more strategic approach by rethinking their relationships with suppliers. A more symbiotic model – one built on shared risk and shared reward – can, in turn, lead to improved access to data that can help brands remain agile and create greater overall alignment.
Finally, strategic sourcing—whether through nearshoring, supplier diversification, or leveraging free trade agreements—can also help insulate against potential tariffs.
The key is to build resilience into supply chains so brands can navigate any disruption beyond tariffs.
SC247: Are there specific innovations in supply chain management that are proving particularly useful for fashion brands dealing with tariffs?
PM: Absolutely. Brands that have adopted AI-driven inventory management and digital supply chain networks are better equipped to respond to future disruptions, including tariffs. AI-powered demand forecasting, for example, helps brands make smarter purchasing decisions, reducing exposure to tariff-driven cost hikes.
Scenario modeling also enables companies to simulate the impact of different tariff scenarios and adjust sourcing strategies accordingly.
The bottom line is this: technology enables brands to be proactive, positioning them to navigate any unforeseen challenges.
SC247: What’s one piece of advice you’d give to fashion executives who are still determining their next move in response to these tariffs?
PM: Don’t succumb to what I refer to as TDS—“tariff derangement syndrome.” Maintaining a healthy perspective is important, as tariffs are one of many potential disruptions.
Fashion and apparel brands should focus on strengthening their supply chain’s resilience through strategic planning, digital solutions, and flexible vendor agreements. This approach will better prepare brands to navigate any future challenges.
SC247: What’s one trend you are keeping a close eye on that could impact how brands react to future trade policy changes?
PM: I’m closely monitoring the shift towards nearshoring and regional manufacturing. Brands in the fashion and apparel space are increasingly exploring production closer to their primary markets to reduce dependency on distant suppliers and mitigate risks associated with tariffs and other future disruptions. This trend could lead to more agile supply chains and reevaluating traditional sourcing strategies.