The fashion industry is experiencing seismic shifts, and the U.S.’s new tariff laws are at the heart of it. What might look like a political trade move is, in reality, reshaping the entire retail ecosystem—from global e-commerce giants to the small independent designers they once championed.
The U.S. Tariff Effect
Under the updated tariff framework, brands importing goods into the U.S. face higher duties, which directly increase the landed cost of garments. This burden is ultimately passed on to the consumer, making international products significantly more expensive in the American market. While the goal is to incentivise domestic production, the ripple effects are far more complex. Brands shifting production to avoid tariffs must grapple with questions of quality, ethical labour practices, and sustainability; factors that extend far beyond the immediate cost of goods.
Ssense: A Case Study in Fragility
Ssense’s story illustrates these pressures clearly. Founded in 2003 by Rami Atallah and his brothers, the Canadian e-tailer built its reputation on championing emerging and independent designers. Yet in June 2025, the company filed for protection under Canada’s Companies’ Creditors Arrangement Act (CCAA), triggered by its primary lender initiating a sales process.
The retailer faced mounting challenges: three rounds of layoffs since 2023, including 100 employees earlier this year, and the financial shock of Canada’s 35 per cent tariff on goods shipped to the U.S. For consumers, the strain was visible through surprise duty charges and rising costs, eroding trust in the platform.
Ssense’s decline also highlights the delicate balance between accessibility and brand identity in luxury retail. The platform’s reliance on constant markdowns initially attracted younger, aspirational shoppers, but over time, it eroded both designer trust and consumer perception. For independent designers carried by Ssense, the stakes were even higher. Many relied on the retailer as one of their first major wholesale partners and now face unpaid invoices and delayed payments. What was once a launchpad for niche talent has, under financial strain, become another risk factor in an already precarious market.
A Global Pattern
Ssense is not alone. Other luxury retailers have faltered under similar pressures: LuisaViaRoma filed for court protection, Farfetch was sold to Choupang, and Yoox Net-a-Porter consolidated into Mytheresa earlier this year. The post-pandemic surge in “revenge spending” has cooled, leaving many luxury players overextended. High tariffs, rising costs, and thinning consumer demand are proving an unforgiving combination.
Looking Ahead
The collapse of Ssense signals a broader reality: global fashion retail is entering a period of restructuring. While tariffs aim to protect domestic businesses, they also highlight the vulnerabilities of international trade and the precarious position of small brands. For the industry, adaptability – through transparent communication, flexible sourcing, and diversified wholesale strategies – will be critical to ensuring that designers, particularly independents, can continue to thrive.
For brands and agencies observing the market, the lesson is subtle but clear: curated, niche positioning and thoughtful brand storytelling offer resilience that discounts alone cannot provide.
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