In the quiet hum of a small design studio, where fabric bolts line the walls, where sketches hang like dreams on pinboards, and where every hem is sewn with purpose, something heavier than bolts of cotton hangs in the air, uncertainty.
For many small clothing brands like Stella Carakasi, recent tariff hikes on imported goods have struck like a harsh downpour. These aren’t just numbers on a spreadsheet, they’re lifelines being squeezed. Margins that were already thin have now frayed to the point of breaking. For small brands this economic shift could spell the end of their journey.
Small fashion labels often rely on overseas manufacturing for one simple reason, affordability. Producing a garment abroad costs less what it would domestically. But here’s the part that’s often misunderstood, for sustainability-minded brands like Stella Carakasi that use high-quality, eco-conscious materials and partner only with ethically certified factories, the savings are not as drastic as people might think.
When a brand chooses organic cotton over conventional, low-impact dyes over toxic chemicals, Tencel® over synthetics, and WRAP or Fair-Trade certified factories over low-cost, questionable alternatives, their production costs are already significantly higher. These brands are not cutting corners. They are, in fact, going the extra mile to ensure every step of the supply chain aligns with their values. And those choices add up, regardless of geography.
So, when tariff hikes hit, it’s not like there’s a huge cushion. Even overseas production isn’t “cheap” for brands like Stella Carakasi doing things the right way. It’s simply been the only semi-feasible path to balance sustainability and survival.
With the new tariffs, costs have spiked virtually overnight. Fabric imports. Zippers. Buttons. Finished garments. All taxed at higher rates. The result? A once affordable blouse may now cost twice as much to produce, before it ever reaches the rack.
For large retailers, this is a hurdle. For small brands, it’s a cliff!
Some are considering reshoring, bringing manufacturing back to the U.S., a dream that aligns with localism and sustainability, but one that’s far more complicated than it sounds. Because let’s be honest. Made in America comes with a price tag most people aren’t willing to pay.
People love the idea of American-made goods, until they see the price. But behind that “Made in USA” label are real costs, fair wages, overtime pay, workers’ compensation, health insurance, safety compliance, factory upkeep, and rising costs of raw materials. All of it adds up quickly. For a small brand trying to do things right, it’s like trying to swim upstream with weights strapped to your ankles.
The reality is, customers often balk at a $200 garment made ethically in the U.S. while spending the same amount across several fast fashion brands that won’t last the season. The perception of value is skewed, and small brands are stuck in the middle, wanting to do better, but struggling to afford it.
And building that U.S.-based infrastructure? It takes time, time these brands don’t have as tariffs eat away at already razor-thin margins. Domestic production means re-establishing relationships, finding skilled labor, ordering in higher volumes to meet factory minimums, and rethinking entire workflows. It’s not just a switch to flip. It’s a whole new game.
In the meantime, they’re faced with impossible choices. Raise prices and risk losing loyal customers. Absorb the costs and risk financial collapse. Cut corners and compromise values. Lay off team members. Pause growth. Or worse, shut down completely.
Behind every small brand is a story, a designer who left their 9-to-5 to follow a dream, a mother who built a company from her kitchen table, a recent grad who stitched together a line from scraps and hope. They are the heart and soul of a more thoughtful, more responsible fashion industry. But that heart is under pressure now.
And yet, in all this struggle, there’s resilience.
We’ve seen communities rally. Customers paying full price, even when discount codes are offered. Crowdfunding campaigns launched not for expansion, but for survival. It’s a reminder that this industry is not just built on fabric, but on heart.
If you believe in small businesses, now is the time to show up. Buy less, but better. Support small brands. Ask your favorite brand how they’re doing and really listen! The price tags may be higher, but the value behind them has never been more real.
This moment in fashion history could define what comes next. Will we double down on disposable? Or will we hold tight to the brands trying to do it right, stitch by stitch, against the current?
Let’s not let them fade, because they are hanging on by a thread! Your support during these uncertain times means more than ever. Thank you!
