Tariffs as a Catalyst to Circular Fashion

By Shamini Dhana

In recent months, the fashion industry has once again found itself at the intersection of geopolitics and global supply chains. The imposition of new tariffs on apparel and textile imports—especially from Asia—has sent a shockwave through an already vulnerable system. But rather than a setback, this disruption may be exactly what the industry needs. Tariffs, paradoxically, could become the unexpected accelerant for circular fashion.

The Cracks Are Showing

For decades, fashion has relied on a linear, offshore production model: design in one country, manufacture in another, and sell across many. It was efficient, predictable, and profitable—until it wasn’t. COVID-19 exposed the fragility of global supply chains. Climate crises and consumer consciousness challenged fashion’s wasteful practices. And now, rising tariffs are making offshore production cost-prohibitive.

According to the U.S. Department of Commerce, apparel tariffs on certain categories are rising by as much as 25%. For brands that rely on traditional sourcing, this could mean millions in added costs annually. These increases aren’t temporary—they’re part of a broader trend toward reshoring and rebalancing trade. Fashion’s traditional model is being disrupted from every angle.

Circular Fashion: From Ideal to Imperative

Circular fashion—where materials are reused, garments are reimagined, and waste is minimized—has long been seen as a sustainability ideal. But today, it’s becoming a business necessity. In a tariff-heavy world, second-life materials, on-demand production, and local supply chains are not just environmentally sound—they’re economically strategic.

At D/Sphere, we see this as a moment of transformation. Our platform enables brands and consumers to co-create fashion using second-life materials, produced on demand and, increasingly, nearshore. This isn’t just about reducing waste; it’s about reducing exposure—to tariffs, to overproduction, and to outdated systems that no longer serve people or planet.

Why Tariffs Could Accelerate Circular Adoption

Tariffs may feel like a punitive measure on the surface, but they are also a nudge—a push for brands to build more resilient, transparent, and localized systems. Here’s how circular fashion creates an edge:

Cost Resilience: Circular systems can offset the rising cost of imports by sourcing materials from existing supply. Reuse becomes not just ethical, but economical.
Speed-to-Market: Nearshoring and on-demand production enable faster response to demand, reducing excess inventory and markdowns.
Consumer Loyalty: Circular fashion invites consumers into the story—co-creating designs, preserving heritage, and aligning with values that matter.

Fashion’s future isn’t about mass replication—it’s about meaningful creation.

A Turning Point for Policy and Innovation

Governments across North America and Europe are now recognizing circularity not just as an environmental goal, but as a strategic economic shift. From tax incentives to grant funding, the infrastructure for localized, regenerative manufacturing is growing. These policies are creating tailwinds for brands willing to adopt new systems—especially those that center reuse and resilience.

The global trade and policy landscape may be uncertain, but one thing is clear: the brands that move early toward circularity will be the ones best positioned in the years ahead.

The Human Thread: Fashion That Preserves Stories

Circularity isn’t just a systems upgrade—it’s a return to meaning. Imagine a garment co-created using fabrics handed down through generations. A jacket that incorporates textiles from three continents, telling the story of a multicultural identity. A piece that blends technology with legacy. This is what D/Sphere enables: a platform where humanity, creativity, and sustainability converge.

Fashion can be a powerful vehicle for personal and cultural storytelling. Circular fashion makes that possible—beautifully and intentionally.

The Call to Action

At D/Sphere, we’re inviting brands, designers, and visionaries to join us in shaping the next chapter of fashion—one that is circular, tariff-resilient, and deeply personal.

If you’re a brand: Partner with us in the Fall 2025 Pilot Program to co-create the first tariff-resilient circular capsule.
If you’re a designer or innovator: Bring your creativity to life with second-life materials and AI-powered customization.
If you’re a consumer: Join the movement. What you wear can reflect who you are and help rewrite the fashion system.

The time to act is now. Just as Peloton thrived amid disruption, D/Sphere is poised to lead in this new era. Tariffs have cracked the door open. Circular fashion is how we walk through it—and design a system that works for everyone.