Good morning! Diddy’s sex-trafficking trial has begun, White House Chief of Staff Susie Wiles faces conflict of interest concerns, and tariffs continue to roil the fashion world.
– Style at risk. The clothing brand Lafayette 148 is 29 years old, worn by Melania Trump, and makes 95% of its inventory at a compound it built in China. Cofounder and CEO Deirdre Quinn says U.S. tariffs on China are costing her $600,000 a week and she “won’t make it ’til Christmas” if President Donald Trump’s China trade war continues.
For Lafayette 148, that transition would be even more complicated. About 15 years ago, the label invested in a 240,000 square-foot compound in Shantou, China, that can manufacture leather goods, knitwear, blouses, and more. Quinn says the factory allowed her to keep working after she almost quit out of exhaustion criss-crossing the globe looking for separate factories for each of her products. Becoming a vertically-integrated business was an advantage—until it wasn’t.
Emma Hinchliffe
emma.hinchliffe@fortune.com
