Mango’s Plan to Handle US Tariffs Without Raising Prices

Despite new tariffs, Mango isn’t hiking prices—but it might come at a cost. Here’s how the fashion brand is adapting.

Mango does not plan to raise prices to offset the impact of tariffs, even though that could dent its margins, CEO Toni Ruiz said. (Shutterstock)

Tariffs are making life harder for global brands, but Mango has decided to take a different approach. Instead of passing the extra costs onto shoppers, the Spanish fashion retailer is choosing to absorb them—even if it means making less profit.

In a recent interview, Mango CEO Toni Ruiz confirmed that the company won’t be increasing prices to offset US tariffs. While that’s great news for customers, it does mean the brand’s profit margins could take a hit.

Why Is Mango Taking This Approach?

Mango is playing the long game. Instead of scaring off customers with price hikes, the brand is focused on keeping its clothing affordable. With the US being a key market, staying competitive is crucial—especially when fast fashion giants like Zara, H&M, and Shein are all fighting for attention.

What’s the Impact on Mango?

Not raising prices might keep shoppers happy, but it does put pressure on Mango’s bottom line. If the cost of doing business goes up due to tariffs, but prices stay the same, the company makes less money on each item sold. That means they’ll have to find other ways to stay profitable—whether that’s cutting costs elsewhere, optimizing logistics, or negotiating better deals with suppliers.

What’s Next for Mango?

For now, Mango seems committed to its strategy, betting that customer loyalty and steady sales will outweigh the short-term financial hit. However, if tariffs continue to rise or economic conditions change, the brand might have to rethink its stance.

Final Thoughts

Mango’s decision to absorb tariff costs instead of raising prices is a bold move in today’s retail landscape. It shows the brand is prioritizing customer affordability, but it also raises questions about how long they can sustain this approach.

What do you think? Should Mango stick to its plan, or will it eventually have to raise prices like other brands? Let’s talk in the comments!