🌍 Global Trade Shifts Are Reshaping Market Dynamics

Recently, global trade dynamics have once again been shaken—The U.S. government has announced a new wave of high tariffs on over 20 countries, including the EU, Vietnam, and Indonesia.

While Taiwan has not yet been officially added to the penalty list, bilateral negotiations with the U.S. remain entangled in disputes over meat imports and semiconductor exports. At the same time, progress in the talks suggests a possible direction toward a “shared prosperity” partnership between the U.S. and Taiwan.

Here are key trade developments announced before August 1:

• China: Pending announcement. In recent months, China has been aggressively seeking alternative markets by dumping low-priced goods into Europe. Chinese companies are suspected of engaging in illicit transshipment through Southeast Asia to evade U.S. tariffs.
• Japan & South Korea: While Japan has agreed to open its markets in exchange for a reduction of tariffs to 15%, South Korea continues to face the threat of 25% tariffs as pressure to also open its markets.
• Vietnam: Reached a 20% tariff agreement—down significantly from the previously threatened 46%. A 40% tariff on transshipped goods was imposed to prevent Chinese products from entering the U.S. through Vietnam.
• India: In talks to reduce tariffs on selected goods to below 20%, aiming to restructure bilateral trade more favorably.
• EU: Facing a 30% U.S. tariff threat, the EU is considering concessions on auto tariffs to avoid punitive measures starting August 1.
• Russia: Trump has threatened a secondary tariff of up to 100% to pressure Russia over the war in Ukraine.

From U.S. tariff hikes to stricter EU sustainability regulations, and fast fashion brands facing heavy penalties for misleading marketing—global supply chains and trade environments are undergoing major disruption. Ultimately, these shifts affect product pricing and market competitiveness, forcing consumers to reassess their choices between cost, quality, and value.

💬 Consumer Behavior Has Shifted — Brands Must Go Deeper

According to GO SURVEY ( 9-21 Apr. 2025, 12,131 respondents): More than 80% of consumers believe that global trade and economic policies influence their purchasing decisions (see chart).

This highlights a key insight: brands must go beyond price competition to create deeper emotional connections in order to stand out in today's "personal economy."

On the other hand, research also indicates that consumers are increasingly drawn to the value and meaning behind their purchases. They are willing to pay for products and services that offer emotional fulfillment.

So how can brands tap into the diverse and layered drivers behind purchasing decisions—to find opportunities for growth amid a climate of uncertainty?

Only by actively responding to consumers’ emotions and needs, delivering consistent product and service quality, and creating experiences that surprise and resonate, can brands earn lasting trust. And that, in itself, will be one of the most demanding challenges in the competitive landscape ahead.

⚠ Brand Penalties Are Not Just About Money—They Reflect Lost Trust

Fast fashion giant SHEIN was recently fined €40 million by France for greenwashing and misleading discount claims. This isn’t just about monetary penalties—it’s a clear warning that brand integrity and sustainability are under serious scrutiny.

Key takeaways for all apparel brands:

⚠ Sustainability must be rooted in real action—from supply chains to material choices—not just marketing language.

⚠ Misleading communications quickly erode brand trust.

⚠ Long-term reliance on low prices is unsustainable, especially in the face of regulatory and ESG pressure.

Under the combined weight of EU regulations and U.S. trade barriers, only brands that return to core values—honesty, quality, and resilience—will survive and thrive.

🤝 In Uncertainty, Consumers Seek Meaning and Connection

Today’s consumers aren’t just looking to "buy things"—they are seeking alignment, trust, and emotional resonance. When trade advantages fade and price alone can't compete, brands must win on value, integrity, and storytelling. In every conversation, we aim to share the stories and strategic thinking behind each product—So that every piece of fabric becomes not just a purchasing decision, but a bridge between you, your partners, and your customers.

Three Core Forces Behind Consumer Spending