How U.S. Tariffs Are Challenging Made in Italy Fashion E-Commerce

A Studio Mirari Case Study in Strategic Resilience

Anticipating Uncertainty and Managing the Tariff Impact While Preserving Premium Brand Positioning

If you’re an Italian fashion brand selling in the U.S., chances are you’ve found yourself wondering:
How should we respond to rising tariffs? Should we increase prices? Cut margins? Leave the market altogether?

In spring 2025, these questions became pressing when the U.S. announced potential new duties on Made in Italy apparel. For brands with significant exposure to the American market, the implications went far beyond pricing, they threatened long-term brand perception and customer loyalty.

In this article, we’ll walk you through a real case: a premium Italian fashion brand (with 100% production in Italy) facing this exact challenge. The approach we took, a multi-tiered plan that combined communication strategy, pricing intelligence, logistics and market diversification, offers a model you might find helpful too.

The Challenge: How to Stay Premium Without Losing Customers

Tariffs create a domino effect: production costs rise, prices may need to increase, and customers, especially in the premium and affordable luxury segments, can be quick to walk away.

While some brands chose to pass the cost onto the customer through price hikes, that strategy is risky: it can erode trust and dilute the brand’s value proposition, especially if not handled with care.

Recent Deloitte forecasts show that rising tariffs could significantly dampen U.S. consumer spending in the coming years, highlighting the long-term risks of relying solely on price increases. ¹

¹  Tariffs will impact the economy … and so will uncertainty – Deloitte.com

The goal here was to stay premium, preserve customer trust, and avoid panic, all while building resilience.

Objectives

• Preserve relationships with U.S. customers
  
• Limit the potential financial impact of tariffs
  
• Strengthen the “Made in Italy” brand positioning
  
• Activate alternative strategies to offset potential market losses
  

A Multi-Level Response

1.Direct, Calibrated Communication with End Customers

Rather than staying silent or going full alarmist, the brand added a subtle banner to its U.S. site:

“Shop before it’s too late: your favorite Made in Italy brand may be subject to increased duties.”

It was just enough to prompt action, without creating anxiety. Messaging in email and social channels reinforced this with a sense of exclusivity and timing, rather than fear.

2. Reinforced the Brand Story

Email campaigns targeted at U.S. customers were redesigned to spotlight:

• the craftsmanship behind Made in Italy,
  
• the uniqueness of their production model,
  
• and the opportunity to buy before macroeconomic changes took effect.
  

By weaving these elements into a compelling and authentic narrative, we not only reinforced the brand’s positioning but also encouraged immediate engagement. Remember: consistent storytelling remains one of the most powerful tools for building long-term brand equity.

3.New Market Scouting and Strategic Budget Reallocation

Recognizing the need for geographic diversification, the brand launched test campaigns in receptive markets such as Canada, Australia, and the Middle East. This was made possible by a new digital strategy that included:

• shifting focus away from top-of-funnel activity in the U.S.
  
• reallocating budget toward acquisition campaigns in target markets,
  
• using these campaigns to test resonance, price elasticity, and messaging effectiveness to support future distribution opportunities.

By exploring new geographies with agility and strategic intent, the brand positioned itself to mitigate risk and build resilience over the medium term.

4. Strategic Pricing Adjustments and Smarter Shipping 

We didn’t just raise prices across the board. Instead, we:

• adjusted pricing on selected SKUs, avoiding distortions compared to other markets,
  
• optimized shipping and returns costs to preserve customer trust and perceived value on the product
  
• and bundled offers where it made sense ensuring overall business sustainability
  

The goal was to absorb part of the tariff impact while keeping the customer experience seamless.

5. Improved Logistics with a U.S.-Friendly Model

To avoid delays and keep costs down, the brand considered:

• warehousing inventory at wholesale value in the U.S.,
  
• experimenting with on-demand shipments: grouping orders in Italy, shipping in batches to the U.S., and fulfilling locally.
  

This allowed to maintain a seamless and unchanged shopping experience for customers, while improving delivery speed and lowering duties.

The Results

This strategy helped the brand achieve several medium- to long-term goals, including:

• Maintaining a stable performance in the U.S. despite the tariff pressure,
  
• Strengthening brand trust among customers through transparent and timely communication,
  
• Increasing net U.S. revenue by +22.2% YoY, with a +32.3% peak in May 2025,
  

Laying the foundation for sustainable growth in new markets.

Monthly growth in U.S. direct-to-consumer sales throughout 2025

Key Takeaways for Fashion Brands Facing Tariff Pressure

1. Start communicating early but keep it calm, clear, and customer-first.
   
2. Reinforce your brand story, because price adjustments alone won’t win.
   
3. Don’t panic-price, adjust carefully, strategically, and only where needed.
   
4. Use testing to prepare new markets for scalable growth.
   
5. Optimize logistics creatively to cut costs without killing your D2C model.
   
6. Turn the challenge into a brand moment: transparency and agility build long-term trust.
   

If you’re facing similar questions in your organization, we hope this case gives you some good inspiration. Tariffs may be outside your control, but how you respond can shape your brand’s future.

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