Just when fashion was getting used to the Trump administration’s tariffs, global politics intervened.
A little under a week ago, president Donald Trump threatened to more than double tariffs on European countries that had expressed opposition to his desire to take control of Greenland from Denmark. A few days later, he abruptly reversed course, taking new tariffs off the table, claiming he had reached a “framework of a future deal” over the territory’s future.
The whole episode technically left no marks on the fashion industry – tariffs were never actually raised and trade deals weren’t torn up. But it served as a useful reminder that uncertainty is now a permanent feature of fashion’s operating environment.
The globalised nature of the industry makes it highly vulnerable to sudden policy shifts and macroeconomic disruptions, from pandemics and mercurial world leaders to inflation, currency swings and a cultural referendum on DEI. Ongoing volatility from Iran and Venezuela compounds the pressure.
Until this week, it was possible – though in retrospect unwise – to think that last year’s turbulence was the result of Trump scrapping the old order and replacing it with his preferred way of doing business and conducting geopolitics. This week’s events revealed how quickly the “new normal” can unravel.
For the most nimble players, the Greenland situation illustrates both the challenge and a potential strength: brands that anticipate perennial disruption can convert volatility into a competitive advantage. Threatened tariffs last year forced companies to test contingency plans, and diversify sourcing — measures that are becoming standard across the industry. Many companies dusted off those playbooks this week, and will probably have to do so again.
For fashion stakeholders, The Business of Fashion offers a range of resources on preparing for volatility, triage, diversification, and risk management. Greenland is a reminder that the “new normal” is never permanent, and success depends on being ready for the next shock before it arrives.
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