Argentines have been complaining about the high cost of clothing for years. Recently, however, their laments have been met with a question offering an alternative solution. 

“Have you checked out Shein?” 

References to the online Chinese retailer have become ubiquitous for a very particular reason. Ever since President Javier Milei lifted restrictions on online shopping platforms, companies like Shein and Temu have flooded the Argentine market with ultra-cheap clothing, easily accessible with a few clicks and shipped free nationwide.

Consumers can now buy trekking shoes for AR$25,000 (US$17 at the official rate) or a denim jacket for AR$40,000 (US$27) — a third of what they would cost in an Argentine shopping mall. While this has made foreign goods more affordable, it’s also deepened the crisis of Argentina’s textile industry, which was already weakened by plummeting domestic consumption.

According to a report from Fundación Pro Tejer, an organization representing textile companies nationwide, 381 textile firms shut down and 11,500 registered jobs were lost between December 2023 and June 2024, making textiles the hardest-hit industrial sector. 

The majority of closures affected small and medium-sized enterprises (SMEs), but larger firms aren’t immune. Iconic brands like sweater manufacturer Mauro Federico, based in Mar del Plata, laid off 150 workers in July alone. These figures exclude informal workers or suspended employees.

The Argentine Chamber of Garment Manufacturers (CIAI) estimates that the textile industry is shedding 1,500 jobs a week. It also reports that purchases through international e-commerce platforms jumped 390% between July 2024 and the same month this year. 

Meanwhile, Argentine tourists spent an estimated US$2.2 billion on clothing abroad in the first eight months of 2025, a 111% increase from the previous year and the highest since 2017, when the exchange rate was similarly favorable.

Cheap imports

The surge in online shopping is driven by more than just price. Camila Molteni, a 31-year-old UX specialist from Buenos Aires, recently bought a tracksuit and waterproof jacket for AR$51,000 (US$35 at the official rate) on Shein. “Here, you’d be lucky to get a decent T-shirt for that,” she told the Herald. But Molteni also highlighted broader benefits — such as the wide range of sizes available online that local brands often fail to offer.

Though Molteni typically supports national production, she admits buying from Shein brings internal conflict. “This Chinese giant is wrecking the local industry, but at the same time, the industry priced itself out,” she said. “Who can afford an AR$200,000 (US$136) shirt?”

Others are more blunt. “The textile industry’s criticism of Shein is absurd. Their profit margins are insane,” said a sociologist with Argentina’s CONICET research council, who asked to speak anonymously. “It’s a scam. They want to sell sneakers at AR$400,000 (US$273) and jeans at AR$300,000 (US$204) — it’s a rip-off.”

The industry defends itself

Luciano Galfione, head of textile firm Unifibers and president of Pro Tejer, disagrees. At a recent press briefing in Buenos Aires the Herald was present at, he argued that clothing isn’t uniquely expensive in Argentina — everything is. 

“When I travel abroad, I compare clothing prices because, you know what? I can’t fit an Audi in my suitcase,” he joked.

Galfione blames the infamous “Argentine cost” — a mix of taxes, rent costs, and banking fees — for high retail prices. According to Pro Tejer, taxes make up 50% of a garment’s price; rent accounts for 13%, and banking fees another 12%. Less than 10% of the final price reflects the actual manufacturing cost.

Galfione says that this is where Shein gains an unfair advantage: it pays no import taxes on orders under US$400, offers free shipping, and avoids the costs of local storefronts.

The situation has gotten worse since the Milei administration slashed import tariffs on textiles and apparel in March. Duties on clothing and footwear fell from 35% to 20%, from 26% to 18% for fabrics, and from 12% to 16% for yarns. These changes, combined with a relatively fixed exchange rate and soaring domestic inflation, further erode the competitiveness of local producers.

“When we cut tariffs, we’re giving tax breaks to Chinese producers 20,000 kilometers away,” Galfione warned. Jorge Sorabilla, institutional director at textile firm TN PLATEX, added, “Instead of reducing taxes for local businesses, we’re opening the floodgates. It’s dangerous at a time the world is moving in the opposite direction.”

Sorabilla pointed to recent moves in other countries, including the U.S. under President Donald Trump, which raised average import tariffs from 2.5% to 27%. France also passed a law in June targeting fast fashion, requiring companies like Shein and Temu to account for their environmental impact and restricting their advertising.

“These products barely last three wears. 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 said. “Some may even harm your skin. Regulating them should be a no-brainer. And with Argentina’s limited foreign currency reserves, importing this stuff is just wasteful.”

Imported goods also dominate retail

Between January and August 2025, clothing imports to Argentina measured by weight more than doubled compared to the same period in 2024, increasing by 109%. These numbers don’t even include e-commerce. Pro Tejer estimates that 70% of the clothing sold in Argentine stores this year was imported, up from 57% the previous year.

Yet prices in shopping malls haven’t dropped significantly. Pro Tejer argues that this proves the problem isn’t local production costs but the broader tax burden and retail chain markups. “You can get a branded pair of jeans for US$20 in a Miami mall. Now that most jeans here are imported, have prices dropped to US$20? No,” Galfione said.

According to Argentina’s national statistics agency, clothing prices dropped a modest 0.3% monthly in August. But Pro Tejer attributes that dip not to imports but to collapsing consumer demand. Small business owner Marco Meloni notes that with rising utility bills, loan rates, and rent, clothing purchases are increasingly postponed.

“Buying a pair of pants or a shirt just isn’t a priority,” he said.

As customers flock to Chinese platforms and take advantage of the favorable exchange rate, Galfione stressed the importance of defending the local industry. “This isn’t about ideology — it’s about pragmatism,” he said. “There’s no developed country with over 35 million people that isn’t an industrial powerhouse.”