On April 2, 2025, President Trump announced tariffs that will significantly impact the knitwear industry. These tariffs will increase costs for consumers purchasing cashmere, merino wool, and other knitwear products in the U.S.

90% of the world's raw cashmere is processed in countries China, Inner Mongolia (China SAR), and Mongolia, which is then exported to countries such as Italy, China, and Madagascar, where it is spun into yarn and then knitted into sweaters. 

Here's how these changes will affect prices and why now might be the best time to stock up on knitwear and even thinking ahead for holiday gifting:

Tariff Impact on Other Knitwear Prices

The tariffs impose higher rates on knitwear imports from countries, and most of cashmere and high-end knitwear is from Italy (20%), Madagascar (47%), China (54%), and Inner Mongolia (54%). For example:

• Loro Piana Cashmere Sweater: Currently priced at $1,900, this could increase by 20% to $2,280.
• Arket Merino Wool Polo: Currently priced at $75, this could increase by 54% to $115.
• Paloma Wool Cotton Knit: Currently priced at $242, this could increase by 20% to around $290.

Tariff Impact on Ply-Knits Prices

• Ply-Knits Imogene Cotton Cashmere Knit: Currently priced at $198, this could increase by 54% to $304.
• Ply-Knits Hathaway Merino Cardigan: Currently priced at $288, this could increase by 54% to $443.
• Ply-Knits Iris Cashmere Silk Cardigan: Currently priced at $335, this could increase by 54% to $515.

Consumer Implications

These tariffs will lead to higher prices across the knitwear market. Consumers should consider purchasing now to avoid future price hikes. The tariffs will not only increase costs but also potentially reduce demand as consumers seek more affordable alternatives. Reshoring knitwear, especially cashmere and merino to the USA will be slow and unlikely in the next few years, due to large scale infrastructural and labor challenges. Knitwear production is complex and requires 29 steps, for instance, compared to 2 steps for T-shirts. Brands that currently do manufacture cashmere within the USA such as The Elder Statesmen and The Row have a starting price tag of $1,500.

Prices Through Multibrand Retailers

For consumers shopping through multibrand retailers like Net-a-Porter, the impact of tariffs will be directly passed on to consumers. These retailers typically do not absorb increased costs but instead adjust their pricing to reflect the higher import costs. Therefore, consumers can expect to see higher prices for luxury knitwear items on these platforms as well.

Conclusion

In light of these upcoming tariffs, consumers interested in luxury knitwear should stock up now to avoid future price increases. The tariffs will significantly impact the knitwear supply chain, leading to higher costs and potentially altering consumer behavior. Shopping during travels to Europe or Asia, perhaps, can offer reprieve from tariffs. 

Key Takeaways for Consumers:

• Higher Prices: Expect increased prices for all cashmere and merino wool products due to tariffs.
• Supply Chain Disruptions: International sourcing will become more expensive, affecting product availability.
• Stock Up Now: Purchasing knitwear before the tariffs take full effect could save consumers money in the long run.