For years, Argentines have expressed dissatisfaction regarding the elevated prices of clothing. Recently, however, their expressions of concern have been met with a query presenting an alternative solution. References to the online Chinese retailer have proliferated for a specific rationale. Since President Javier Milei removed restrictions on online shopping platforms, the Argentine market has seen an influx of ultra-affordable clothing from companies such as Shein and Temu, readily available with just a few clicks and shipped free across the country. Consumers now have the option to purchase trekking shoes for AR$25,000 or a denim jacket for AR$40,000 — significantly lower than the prices found in Argentine shopping malls, where these items would typically cost three times as much. While this has rendered foreign goods more accessible, it has concurrently exacerbated the challenges facing Argentina’s textile industry, which was already compromised by a significant decline in domestic consumption. A report, which represents textile companies across the country, indicates that 381 textile firms ceased operations and 11,500 jobs were lost from December 2023 to June 2024, positioning textiles as the most adversely affected industrial sector.
The predominant impact of closures has been on small and medium-sized enterprises, although larger firms are not exempt from these challenges. Iconic brands such as sweater manufacturer Mauro Federico, located in Mar del Plata, reduced their workforce by 150 employees in July alone. The data presented does not account for informal workers or those who are currently suspended from employment. The Argentine Chamber of Garment Manufacturers projects that the textile sector is losing approximately 1,500 jobs weekly. It also reports that purchases through international e-commerce platforms increased by 390% from July 2024 to the same month this year. In the first eight months of 2025, Argentine tourists allocated approximately US$2.2 billion towards clothing purchases abroad, marking a significant 111% increase compared to the prior year. This expenditure represents the highest level since 2017, a period characterized by a similarly advantageous exchange rate. The increase in online shopping is influenced by factors beyond mere pricing considerations. Camila Molteni, recently purchased a tracksuit and waterproof jacket for AR$51,000 on Shein. “Here, you’d be fortunate to acquire a satisfactory T-shirt for that,” she remarked. However, Molteni emphasized the wider advantages, including the extensive variety of sizes accessible online that local brands frequently do not provide. While Molteni generally advocates for domestic manufacturing, she acknowledges that purchasing from Shein creates a sense of internal conflict. “This Chinese giant is undermining the local industry; however, the industry has also priced itself out,” she stated. “Who possesses the financial means to purchase a shirt priced at AR$200,000 (US$136)?”
Some are more direct. “The textile industry’s criticism of Shein is unfounded. Their profit margins are insane,” remarked a sociologist affiliated with Argentina’s CONICET research council. “It is a fraudulent scheme.” They aim to market sneakers at AR$400,000 and jeans at AR$300,000 — it constitutes a significant overcharge. Luciano Galfione holds a contrary view. He contended that clothing is not uniquely costly in Argentina; rather, all goods are similarly priced. “When I travel abroad, I compare clothing prices because, you know what? “I can’t fit an Audi in my suitcase,” he quipped. Galfione attributes the notorious “Argentine cost” — encompassing taxes, rental expenses, and banking charges — as the primary factor behind elevated retail prices. Pro Tejer indicates that taxes constitute 50% of a garment’s price, with rent comprising 13% and banking fees adding another 12%. Fewer than 10% of the ultimate price corresponds to the genuine cost of production. Galfione asserts that this is the point at which Shein secures a competitive edge: it incurs no import taxes on orders below US$400, provides free shipping, and sidesteps the expenses associated with local storefronts. The circumstances have deteriorated following the Milei administration’s decision to reduce import tariffs on textiles and apparel in March. Duties on clothing and footwear decreased from 35% to 20%, while those on fabrics declined from 26% to 18%, and duties on yarns increased from 12% to 16%. The interplay of these changes, alongside a relatively stable exchange rate and escalating domestic inflation, continues to diminish the competitive edge of local producers. “When we cut tariffs, we’re providing tax advantages to Chinese producers 20,000 kilometers away,” Galfione cautioned. Jorge Sorabilla remarked, “Instead of reducing taxes for local businesses, we’re opening the floodgates.” It poses a significant risk during a period when global trends are shifting in the contrary direction.
Sorabilla highlighted recent developments in various nations, notably the United States during President Donald Trump’s administration, which saw average import tariffs increase from 2.5% to 27%. In June, France enacted legislation aimed at fast fashion, mandating that companies such as Shein and Temu assess their environmental impact while imposing restrictions on their advertising practices. These products have a lifespan of only three uses. “By the third wash, they’re trash, and it’s far more expensive to manage textile waste than it is to import the item,” Galfione stated. Some may even have detrimental effects on your skin. Regulating them should be an obvious decision. Given Argentina’s constrained foreign currency reserves, the importation of such goods is merely an exercise in wastefulness. Imported goods continue to hold a significant share in the retail sector. From January to August 2025, Argentina experienced a significant increase in clothing imports, with weight-based measurements showing a more than twofold rise compared to the corresponding period in 2024, reflecting a 109% increase. The figures presented exclude the realm of e-commerce entirely. Pro Tejer estimates that 70% of the clothing sold in Argentine stores this year was imported, an increase from 57% the previous year. However, prices in shopping malls have not experienced a notable decline. Pro Tejer contends that this demonstrates the issue lies not in local production costs, but rather in the overarching tax burden and the markups imposed by the retail chain. “A branded pair of jeans can be acquired for US$20 in a Miami mall. Given that the majority of jeans available are imported, have prices declined to US$20? “No,” Galfione stated.
Argentina’s national statistics agency reported a modest monthly decline of 0.3% in clothing prices for August. However, Pro Tejer attributes that decline not to imports but to a significant drop in consumer demand. Marco Meloni, a small business owner, observes that the escalation of utility bills, loan rates, and rent is leading consumers to defer clothing purchases. “Acquiring a pair of pants or a shirt simply does not rank high on the list of priorities,” he stated. As consumers gravitate towards Chinese platforms and capitalize on the advantageous exchange rate, Galfione emphasized the necessity of safeguarding the domestic industry. “This isn’t about ideology — it’s about pragmatism,” he stated. “No developed country with a population exceeding 35 million exists that does not function as an industrial powerhouse.”