Dupes are having a moment for a simple reason: they promise consumers a close approximation of the real thing, for less. For a few days this week, President Donald Trump removed the “less” part from the equation.
The new administration has imposed a 10 percent duty on items imported from China, which will make products made there more expensive for American consumers.
Those duties apply to fashion and beauty products of all sorts – China is the biggest apparel exporter to the US. But it was the executive order closing the so-called de minimis loophole, which allows companies to ship goods valued at under $800 to US customers duty free, that rattled an entire ecosystem of retailers that specialise in making familiar-seeming products at a fraction of the name brand price. In other words, dupes.
On Friday, Trump issued a new order pausing the closure of the exemption. It’s impossible to say whether this represents a stay of execution, or a full pardon. Trump has the power to return to his original plans at any time. And even before the election, lawmakers on both sides of the aisle had advocated for its removal.
What happens next will have big consequences for whole swaths of the fashion and beauty industries.
It was the de minimis loophole that cleared the way for the overnight rise of ultra-fast-fashion giants Shein and Temu, which sell thousands of trendy silhouettes at rock bottom prices — think $15 for a floor-length floral dress. Even conventional fast fashion giants like H&M found it hard to compete.
Direct-to-consumer start-ups Italic and Quince also built businesses around mimicking luxury products, often made in the same factories as the name brand version. (While Quince’s price points are higher than Shein or Temu, the company uses duty free shipments for some of its goods). In 2024, Quince was on pace to reach $1 billion in annual sales, up from $300 million the year prior.
Without the de minimis loophole, all of these companies would need to raise prices. Shein and Temu are in a particularly bad spot; while Italic and Quince charge lower prices than Armani or Tiffany, their merchandise isn’t always cheap, and online reviews indicate it tends to be well made. Shein and Temu shoppers, by contrast, know they’re getting what they pay for when they buy a $4 t-shirt.
“The uncertainty [of Trump’s trade policy] is more threatening than the severity,” said Simeon Siegel, managing director and senior analyst at BMO Capital Markets.. “If you’re a retailer, you don’t even know what problem to fix.”
The de minimus loophole’s uncertain future is good news for the brands that have chafed at being ripped off and undercut in the marketplace. Many have complained about dupe culture – Charlotte Tilbury recently told The Business of Fashion “when you dupe, you dupe the customer.”
Another beneficiary of a de minimis crackdown would be companies that have been making their goods on US soil all along. Basics makers American Giant, for instance, may look more appealing to consumers who once scoffed at the $110 henley t-shirts they believed they could snag for one-twentieth of the price on Shein.
Though there was a silver lining to dupe culture. It forced brands to be more innovative in order to stay ahead of the imitators. And it jolted luxury labels that had been coasting on their reputation while allowing quality to slip. With cheap lookalikes just a click away, they are rethinking how to communicate the value of their goods.
However, it’s not just dupe brands and e-commerce giants that are affected by the Trump administration’s rapidly changing trade policies. There are small international brands with considerable US businesses that rely on the de minimis exemption. Toronto-based jewellery brand Cambio & Co., which generates 80 percent of its annual sales from the US, ships all its packages through the US Postal Service, with an average order value of $120. Co-founder Jérôme Gagnon-Voyer says he is worried how customers will react if low-value Canadian imports are no longer waved through the border.
“It’s less of a seamless experience,” Gagnon-Voyer said. “We’re not just worried about the cost, but we’re worried about the fact that [customers] have to deal with this paperwork or these fees that they have to pay now. So, it’s a less interesting experience for a customer.”
Editor’s Note: This story was updated on 7 February 2025 to reflect the Trump administration’s reversal of the de minimis exemption closure.
THE NEWS IN BRIEF
FASHION, BUSINESS AND THE ECONOMY
Ralph Lauren’s dresses and polo shirts drive sales forecast raise. The label’s wholesale business in North America recorded 6 percent growth in third-quarter revenue. The company now expects 2025 revenue to increase between 6 percent and 7 percent, compared with its prior forecast for a 3 percent to 4 percent rise.
Versace parent Capri says turnaround to take a year. The company expects fiscal 2025 revenue of $4.4 billion, below the $4.5 billion average analyst estimate. Adjusted earnings per share in the quarter ended Dec. 28 also missed expectations.
Tapestry boosts annual outlook on Coach strength. The handbag company now sees revenue of more than $6.85 billion in the current fiscal year, the company said in a statement. That would be a 3 percent increase from the prior year. The company had already raised its sales guidance in November.
De Beers CEO says US diamond demand shows signs of recovery. At its final sale of last year, De Beers cut diamond prices by more than 10 percent across the board as the world’s biggest producer abandoned attempts to put a floor under the slumping market. In November and December, demand in the US for diamond jewellery rose about 8 percent year on year.
Canada Goose trims annual profit forecast on dipping China demand. Toronto, Ontario-based Canada Goose saw revenues in Greater China drop by 4.7 percent, compared to the previous quarter’s 5.7 percent jump. The company’s third-quarter revenue fell to C$607.9 million ($423.59 million), from C$609.9 million a year earlier.
Shein to face EU consumer law probe under e-commerce crackdown. The bloc’s executive branch, the European Commission, will lead national consumer protection regulators in a coordinated action against the fast-fashion marketplace. The probe is into Shein’s compliance with consumer laws over the sale of illegal products.
China targets PVH Corp. in retaliation against US tariffs. The country placed the Calvin Klein owner on a so-called blacklist of entities. The Ministry of Commerce said PVH infringed the principles of market transactions and undertook damaging actions against Chinese companies, without elaborating.
US Postal Service reverses decision to halt China shipments. The resumption of normal service capped 12 hours of confusion after the postal service said it would temporarily freeze the package shipments from China and Hong Kong. The saga comes after President Donald Trump revoked a “de minimis” rule for China.
Shein makes a low-key return to India with Ambani after a 2020 ban. Shein’s mobile app and India website, Sheinindia.in, were launched without any fanfare last week by NextGen Fast Fashion Ltd. — a wholly-owned subsidiary of Reliance Retail Ventures Ltd. The retailer will be shipping countrywide “soon.”
Quiksilver and Billabong retailer Liberated Brands files bankruptcy. Liberated sought court protection in Delaware, saying it intends to close its stores as part of a wind-down of its North American operations. The company will also seek to sell its international businesses and has closed its corporate offices and laid off nearly 1,400 employees.
Forever 21 considers bankruptcy filing if asset-sale plans fail. The company is focused on finding buyers for profitable leases. If that fails, it would turn to Chapter 11, though discussions are ongoing and no final decision has been made. Forever 21 is working with BRG for restructuring assistance.
Mexico, Canada and China hit back against Trump’s trade tariffs. The Trump administration announced Saturday that Canadian and Mexican exports to the US will face a 25 percent tariff and goods from China will see an additional 10 percent tariff. The US has since agreed to pause tariffs on Canada and Mexico after the countries threatened to retaliate.
Trump tariffs target loophole used by Chinese online retailers. The gaping de minimis loophole has given China-linked e-commerce companies huge advantages over brick and mortar retailers and online retailers such as Amazon.com Inc. The tariffs on Chinese goods took effect on Tuesday.
Canadian pantyhose maker 40 percent of staff on trade war woes. The threat of new US tariffs has forced Montreal-based clothing maker SRTX to place over a third of its workforce on leave. The company cited rising duties which jeopardise its Canadian manufacturing investments as reasons.
EU to make e-commerce platforms liable for unsafe goods. Customs reforms would oblige online platforms to provide data before goods arrive in the EU, allowing officials to better control and inspect packages. The reforms would classify the platforms as importers, instead of the consumers who purchase the goods.
California introduces bill to regulate fashion’s environmental impact. The bill, known as the Fashion Act, would require brands to cut emissions in their supply chains and tighten chemical management. The proposed regulation would apply to brands with over $100 million of global revenue.
Jewellery-shipper Ferrari Group’s IPO seeks up to €205 million. The jewellery-courier’s controlling Deiana family is offering about 22.8 million shares, the equivalent of a 25 percent stake, for €8 to €9 apiece. A sale at this range would give the company an implied market value of as much as €822 million.
Branded resale service provider Archive raises $30 million. The capital will go toward developing product innovations such as its resale intelligence software, recruiting new talent and scaling the platform. The round was led by Energize Capital, with participation from Woodline Partners, Frontline Growth, Lightspeed Venture Partners and Bain Capital Ventures.
THE BUSINESS OF BEAUTY
L’Oréal invests in Jacquemus. French cosmetics giant L’Oréal has taken a minority stake in the buzzy French brand, underpinning a long-term beauty partnership. The Jacquemus beauty line will be housed under L’Oréal’s Luxe division, alongside products under license from the likes of YSL, Prada and Valentino brands.
L’Oréal sales miss estimates as China demand remains weak. Sales overall rose 2.5 percent on a comparable basis in the period. Analysts had expected a 3.8 percent gain. Revenue in North America only grew 1.4 percent.
Estée Lauder Companies will cut 7,000 jobs as sales drop 6 percent. The company said that the expanded plan is to help Estée Lauder return to sales growth and restore a solid double-digit adjusted operating margin. The company’s sales fell 6 percent to $4 billion in the quarter.
L’Oréal sells €3 billion of Sanofi stock back to the drugmaker. The beauty conglomerate is selling 29.6 million shares at €101.50 ($105) each, the companies said. After the sale, L’Oréal will own 7.2 percent of Sanofi’s share capital, down from about 9.4 percent, and 13.1 percent of its voting rights.
E.l.f. Beauty shares crater as weakening cosmetics demand dents annual forecasts. The company’s shares fell 20 percent after cutting its annual sales and profit forecast. The company now expects annual net sales of $1.30 billion to $1.31 billion, down from a prior target of $1.315 billion to $1.335 billion.
PEOPLE
Sabato De Sarno exits Gucci. The creative director is leaving after two years at the brand, whose pivot to more universal styling and an emphasis on iconic wardrobe pieces has struggled to gain traction in a tough market for luxury. A successor has yet to be named.
Ferragamo parts ways with CEO Marco Gobbetti. Gobbetti would leave next month after little over three years in charge, during which time he failed to stem a slide in sales. The company has started looking for a new chief executive, and chairman Leonardo Ferragamo will take on executive powers until a successor is named.
Former Fendi chief to lead Jil Sander. Serge Brunschwig has been named CEO of the label as well as chief strategy officer of the label’s owner OTB Group. Brunschwig, an LVMH veteran, will “further elevate” Jil Sander’s positioning, the company said.
Naomi Campbell taking legal action in attempt to overturn charity trustee ban.The supermodel was disqualified from being a charity trustee for five years after a Charity Commission inquiry found widespread evidence of financial misconduct at Fashion for Relief. Campbell claims her lawyers have uncovered evidence that documents submitted gave a “false impression” of her role in running the charity.
Area co-founder Piotrek Panszczyk departs after a decade. Alongside Beckett Fogg, the designer turned the New York-based brand into a celebrity favourite known for its eye-catching clothes and accessories. The label has appointed Balenciaga Couture alum Nicholas Aburn as creative director.
Billionaire Bettencourt Meyers to retire from L’Oréal’s board. Francoise Bettencourt Meyers, heir to the L’Oréal fortune, will retire from the company’s board later this year, passing her vice-chairman role to her son, Jean-Victor Meyers. The changes are set to take effect after a shareholder vote at L’Oréal’s annual general meeting in April.
Amy Powney departs Mother of Pearl to launch a new brand. The move ends a 10-year stint at the creative helm, time Powney used to embed her vision of sustainable luxury into the brand’s operating model. Powney’s new label Akyn will debut in May.
Gosha Rubchinskiy and Yeezy part ways. The designer, who oversaw menswear for West’s Yeezy brand, is moving ahead with plans to relaunch his namesake label later this year. The Gosha Rubchinskiy brand inked a deal with a new financial backer in 2023.
MEDIA AND TECHNOLOGY
Grace Wales Bonner, Dapper Dan and Edward Enninful among members of the Met Gala’s host committee. The committee, made up of designers, artists, athletes and musicians, will join the co-chairs in presiding over the evening’s festivities. Also unveiled was the dress code for the Met Gala, ‘Tailored for You.’
Compiled by Yola Mzizi.
