Global Fashion Buys Surge Outside US As Retailers Adapt to Tariffs

US tariffs have been a dominant narrative in business news throughout the year, but recent data suggests that global markets, with the exception of the United States, are beginning to acclimate to their impact. A new report from online wholesale specialist JOOR indicates a notable resurgence in fashion buying activity outside the US during the third quarter, following an initial period of price adjustments triggered by the new tariff regimes.

JOOR's transaction data, comparing like-for-like retailers year over year, initially revealed a global downturn in purchases by 5% in the second quarter. This decline was largely attributed to the introduction of significant US tariffs in April, which precipitated a broader pullback in global buying. However, the data for Q3 paints a different picture for international markets, showing a robust rebound with non-US retailers experiencing an impressive 18% uplift in purchases compared to the previous year.

Several international markets demonstrated particularly strong growth in Q3 orders. Italy led the charge with a 40% increase, followed closely by Germany and South Korea, both registering a 29% rise. The United Kingdom also showed significant positive momentum, with a 22% increase in orders. This widespread recovery underscores a growing confidence among international buyers, who appear to be adjusting to the new pricing landscape.

In stark contrast, the same level of buyer confidence was conspicuously absent within the United States market. JOOR's data revealed a continued downward trend in Q3 retailer purchases in the US, with declines reaching as much as 10%. This divergence highlights the differing impacts and adaptive capacities across various geographic regions in response to the tariff environment.

The introduction of tariffs had a pronounced effect on wholesale prices. Globally, prices rose by approximately 5% from Q1 to Q2 this year, a significant jump when compared to the typical quarter-on-quarter price increase of around 0.6%. While the most dramatic upward shift occurred in the second quarter, price increases continued into Q3, showing an additional rise of 0.5%. Although seemingly smaller, this continued upward trajectory is notable, particularly when viewed against the preceding three years, where prices between Q2 and Q3 generally remained flat or even decreased.

Anticipating these shifts, JOOR conducted a global survey in April which found that a substantial 85% of brands intended to pass on some or all of the tariff-related costs through price increases. Retailers also confirmed these expectations, with 96% of US-based retailers and 82% of non-US retailers indicating that they foresaw increasing their prices as a direct consequence of the tariff costs.

Amanda McCormick Bacal, SVP of Marketing at JOOR, commented on the findings, stating: “This year has marked a particularly tumultuous period for the worldwide fashion industry, causing retailers to make notable shifts in their buying strategy. While global purchases declined in Q2 amidst significant price increases, our latest data shows a confident return to buying by retailers outside the US in Q3 — a welcome development for the fashion sector.” This statement encapsulates the resilience and adaptability shown by a significant portion of the global fashion market in navigating the challenges posed by recent trade policies.