What: Republican nominee Donald Trump was elected to be the next US president this week, defeating Democrat Kamala Harris in a chaotic election season that has shifted American politics further towards the far right.

Why it is important: Trump’s stance on tariffs, the economy and climate change will directly impact the fashion and retail sectors.

Trump has proposed tariffs on imports into the US of between 10-20% for all goods, and between 60-100% on goods from China, on top of existing tariffs. According to a study published this month by the NRF, Trump’s tariff proposals in the apparel, footwear, furniture, home appliances, travel goods and toy categories could reduce US consumer spending by $46 billion to $78 billion annually as long as the tariffs are in effect. For apparel and footwear, the NRF predicts price hikes of 12.5 to 20.6% and 18.1 to 28.8%, respectively. Luxury is already in a downturn, and election anxiety and inflation have softened the spending power of US consumers. Trump’s proposed tariffs also bode badly for the supply chain. This is combined with the possibility of renewed tax cuts. Some investors believe the economy will be boosted by his presidency which could also lead to a stronger world economy and have positive effects on the fashion and luxury sectors.

Fashion braces for another Trump term