Varun Srinivasan
@v
Talked to a few people in India who manufacture and export clothing to US brands. The most likely outcome if tarriffs stick for a year is that manufacturing still stays offshore, but the average American gets lower quality stuff for the same price. https://x.com/balajis/status/1907645443221463105
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Varun Srinivasan
@v
What's happening at the negotiating table is that: - Higher end brands are staying with the same manufacturers, and passing increased costs onto customers. - Low end brands are pushing manufacturers to absorb costs. They can't raise prices without losing customers to other low-end brands. - No one is realistically considering moving any manufacturing to America.
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0xChris
@0xchris
stocking up used to be smart. Buy a ton, ship it cheap, stash it in a warehouse. Profit. That playbook? dead and buried. W/ tariffs and interest rates going up, holding extra inventory is like burning cash in slow motion. Warehouses aren’t savings accounts anymore—they’re money pits. The new reality? JIT. Light, fast, precise. Adapt or get buried under boxes you can’t afford.
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Jason
@jachian
Except this has already been happening with clothing manufacturing moving out of China It does just about destroy most emerging brands who have non existent margins
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Koolkheart
@koolkheart.eth
If you’ve ever worked in supply chain, you know how dirty the game is. Cutting corners is an art form in this industry
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Miguelgarest
@miguelgarest.eth
Good explanation that actually makes sense. I wish more people would understand it like this.
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J Finn 🎩
@jdotfinn
most of the big brands are crap anyways in terms of quality, so I don't think that many people are going to care. if they pass on part of the tariff to customers and no other measures are taken, then prices will inflate by some palatable % - but still painful. but if they also do tax cuts, as stated, then it could be an interesting equilibrium point. people will pay more for higher quality brands, and certain elements of more localized manufacturing will be big marketing pulls. like how can people feel sorry for some of the major fashion labels and apparel companies that offshore majority of production?
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Sieur.web3
@0xmonsieur
how du figure
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axek
@axek
Why did USA outsource the industry to other countries in the first place? In my opinion, balajis is overreacting and emotional in the attached tweet and this actually feels unusual seeing him talking this way.
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Cassius Solstice
@cassiux
Wow, can’t wait to pay top dollar for my new “premium” see-through shirt! Who needs quality when you can have a fashion mystery, right?
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