Many fashion brands have spent the last month recalculating their global strategies due to the sudden, sweeping escalation in U.S. tariffs on Chinese goods. On Wednesday night, Donald Trump announced via social platform Truth Social that tariffs on China would rise to 125% “effective immediately,” citing what he called a “lack of respect” from China toward global markets. That came on top of a previously imposed 20% fentanyl-related tariff, bringing the effective rate on some Chinese imports to 145%.
Markets reacted instantly: The S&P 500 fell nearly 5%, and the Nasdaq dropped 5.7%. Meanwhile, retailers began revisiting buy plans, and fashion brands, particularly those reliant on centralized manufacturing in China, found themselves in a scramble.
But not everyone hit the panic button.
“Our licensing model is naturally resilient,” said Jack Cheika, CEO of New Jersey-based WSG Brands, which owns the global licensing rights to Von Dutch. “Each of our fashion license partners operates independently, within their own region. They’re already navigating local market shifts and making smart sourcing decisions without waiting for top-down orders.”
It’s been just under a year since WSG acquired Von Dutch in July 2024, and in that time, the brand has been rebuilt with one goal: to scale globally without being vulnerable to global shocks. WSG’s 25 regional licensees are given autonomy not only to design and distribute within their markets but also to source locally and pivot production quickly, which is already proving invaluable. The company licenses out categories including apparel, hats and accessories to partners across the U.S., Europe, Asia and South America. Licensees include Tycoon Enterprises in Latin America and Dream Theatre in India.
“When the tariff news broke, we were already in motion,” said Marc Benitez, president and COO of WSG. “We didn’t need to rewrite contracts or renegotiate timelines. The flexibility is built into our licensing agreements.”
Von Dutch’s model is part of a broader trend across fashion, where legacy and heritage brands increasingly rely on licensing to stay lean, agile and protected. For brands like Calvin Klein and Tommy Hilfiger, both owned by PVH Corp, licensing remains core to their structure. Calvin Klein’s fragrance line was licensed to Coty in November 2010, a move that paved the way for Coty to relaunch the brand’s beauty line by 2012. Tommy Hilfiger followed a similar path with fragrance, which was licensed to Estée Lauder before current licensee Give Back Beauty. G-III Apparel, meanwhile, handles Calvin Klein’s underwear and accessories categories, reinforcing PVH’s modular approach. This strategy allows brands to scale categories without in-house production, though creative and product control often sits with the licensee. Despite a revenue dip in 2024, PVH outperformed expectations, with Calvin Klein North America up 3%.
But where WSG stands apart is in its preemptive execution. Cheika and Benitez structured licensing deals with clauses accounting for volatility. Specifications for sourcing flexibility, cost realignment and supply chain autonomy were all written in.
“Our partners are strategic players. They know their markets. They know how to move,” said Benitez. “We share wins across the group, so when one licensee finds a new opportunity, whether it’s faster shipping from El Salvador or lower costs in Bangladesh, that intel gets circulated.”
As some fashion brands weigh domestic production as a long-term solution, WSG is keeping options open. Manufacturing in the U.S. isn’t off the table for its products that are not licensed out. But the next step is nearshoring, with a focus on Mexico, El Salvador and parts of Africa.
“In many cases, we’re able to shift sourcing out of China without disrupting flow,” Benitez said. “Most of what’s being affected by tariffs hasn’t even hit production yet. We’ve got the time to recalibrate.”
He added, “Retailers are asking for more [of our products].” He owed that to customers’ interest in nostalgic brands from the 1990s. “Sell-throughs have been strong. We’re not ordering more volume overall, but we’re going deeper into key categories that are working, like hats, which are a standout.”
The ability to narrow assortments and double down where there’s momentum is a luxury for licensing-focused companies. While companies like Guess and Kenneth Cole operate hybrid models that blend owned and licensed operations, those with a clear licensing playbook, like Authentic Brands Group and WSG, can move faster and absorb shocks more smoothly.
Von Dutch is also making space for brand building. A slate of collaborations is set to roll out over the next 12 months, starting in a few weeks. Most collaborations are driven by licensees, but WSG oversees approvals, aligns on brand strategy and helps shape the narrative.
“There’s a level of global excitement around the brand we didn’t fully anticipate,” Benitez said. “The social engagement is there. The consumer base is evolving. Licensing has given us the space to focus on those growth areas without being weighed down by operational complexity.”
