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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

Issue Summary

Bangladesh is one of the largest suppliers of apparel to the United States, Canada, and the European Union, and its apparel industry is one of the most important in the country. However, there are many challenges for Bangladesh’s manufacturing sector and the country’s competitive advantage, and these challenges have become some of the most critical issues for our industry today.

As we’ve seen in recent months, fire and building safety is one of the most critical challenges that needs to be addressed in Bangladesh. The fire at Tazreen Fashions in November 2012 and the collapse of Rana Plaza in April 2013 have led to the global industry prioritizing this issue.

Additionally, there have been ongoing labor problems in Bangladesh. In April 2012, a prominent Bangladeshi labor activist and former textile worker, Aminul Islam, was found murdered outside Dhaka, and it was believed that his murder was part of a deliberate campaign to suppress labor efforts in the nation.

USFIA Position

The United States Fashion Industry Association (USFIA), formerly the United States Association of Importers of Textiles & Apparel (USA-ITA), supports the ready-made garments sector in Bangladesh, and many member companies source there or would like to source there because of the quality, cost-competitive garments available there.

However, USFIA strongly urges the Bangladesh industry and government will support good labor practices, including building inspections, fire safety training, and support of labor groups in the country. It is critical that all stakeholders work together on this issue.

In addition, USFIA encourages companies to take action, too. Some of our member companies were among the first companies to sign the Accord on Fire & Building Safety led by IndustriALL Global Union, while others were founding members of the Alliance for Bangladesh Worker Safety, consisting of North American brands and retailers. All USFIA member companies sourcing in Bangladesh have programs and standards in place to ensure worker safety, and continue to update those programs. We support any and all efforts by our members to improve worker safety in Bangladesh, whether signing the Accord, joining the Alliance, working internally, or perhaps some combination. Our full statement, posted on May 20, 2013, is available here.

 

Advocacy

USFIA has long been active on labor issues in Bangladesh. On April 18, 2012, USA-ITA (now USFIA) joined a number of global apparel and retail associations in sending a letter to Bangladesh’s Prime Minister Sheikh Hasina Wazed of Bangladesh requesting an investigation into the death of Aminul Islam. The signers note that they are “deeply concerned about this incident because the apparent circumstances leading up to and surrounding Mr. Islam’s death could be perceived to be part of a deliberate campaign to repress efforts to raise and address issues related to unsatisfactory working conditions in the RMG sector.” The letter signers include U.S., Canadian and European apparel, retail, licensing, and footwear industries, and Bangladesh is one of the largest suppliers of apparel to the U.S., Canada, and EU.

On June 5, 2012, USA-ITA (now USFIA) and Worldwide Responsible Accredited Production (WRAP), an Associate Member, hosted a webinar titled, “View from the Ground: Challenges & Solutions for Sourcing & Compliance in Bangladesh.” This webinar provided important information for over 100 U.S. brands and retailers and Bangladeshi manufacturers on how to be compliant and support good labor practices.

In 2013, following the Tazreen and Rana Plaza tragedies, USA-ITA (now USFIA) joined with North American brands, retailers, and trade associations to develop a sustainable plan for addressing the ongoing challenges, particularly with fire and building safety, in Bangladesh. This led to the launch on July 10, 2013, of the Alliance for Bangladesh Worker Safety and corresponding Bangladesh Worker Safety Initiative, a binding, five-year initiative that sets aggressive timelines and accountability for inspections, training, and worker empowerment. More information can be found at the Alliance website, www.bangladeshworkersafety.org

About

The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade.

USFIA represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. Founded in 1989, USFIA works to eliminate tariff and non-tariff barriers that impede the fashion industry’s ability to trade freely and create jobs in the United States.

Headquartered in Washington, DC, USFIA is the voice of the fashion industry in front of the U.S. government as well as international governments and stakeholders.  With constant, two-way communication, USFIA staff and counsel serve as the eyes and ears of our members in Washington and around the world, enabling them to stay ahead of the regulatory challenges of today and tomorrow. Through our publications, educational events, and networking opportunities, USFIA also connects with key stakeholders across the value chain including U.S. and international service providers, suppliers, and industry groups.

 

News

The State of Tariffs

President Trump has made sweeping changes to U.S. tariffs since he began his second term in January 2025. From the Liberation Day tariffs to the various Section 122 and 301 investigations and tariffs, U.S. trade has shifted more in the past year than almost anytime in history. USFIA is pleased to provide the following resources to those wanting to learn more about the state of tariffs in 2026.

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Current baseline tariff on all trading partners

Imposed under Section 122, these temporary tariffs are set to expire on July 24, 2026.

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Countries threatened with Section 301 forced labor tariffs

A new 10% or 12.5% tariff on 60 U.S. trading partners under USTR's Section 301 forced labor investigation.

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in potential and certified refunds accepted in CAPE

CBP has accepted over a hundred billion in potentials and certified refunds since opening CAPE as of July 10, 2026.

Events

Reports

2026 USFIA Fashion Industry Benchmarking Study

The 2026 USFIA Fashion Industry Benchmarking study is now available to the public! Key findings from the report include:

  • The top business challenges facing U.S. fashion companies continue to center on the Trump Administration’s tariff policies, though concerns over inflation and increasing costs have also risen since 2025. 
  • 92% of respondents rated “Protectionist U.S. trade policies and related policy uncertainty, including the impact of the Trump tariffs” as one of their top two business challenges in 2026.
  • Among business concerns, managing forced-labor risks emerged as a significantly higher priority, rising from tenth place in 2025 to sixth place in 2026 and illustrating the industry's commitment to eradicating forced labor from their supply chains.
  • The job market is a bright spot. About 87% of companies plan to increase hiring over the next five years, up from last year and tying the highest level since the pandemic. Demand is expected to be strongest for data scientists, trade compliance specialists, and environmental sustainability specialists
  • AI is becoming increasingly integrated into apparel sourcing and business operations. 56% utilize AI for "demand forecasting and inventory planning," while 50% use it for "sustainability tracking," "risk management" and “sourcing strategy and cost optimization.”

Download the 2026 study here.

If you're interested in sharing your company's perspective for our 2027 study, fill out the interest form.

 Benchmarking 2026 top business challenges


Higher tariffs continue to trigger ripple effects across supply chains.

Figure 1-3 U.S. fashion companies reported deepened economic impacts of tariff hikes and policy uncertainties on their sourcing and business operations

Figure 1-4 U.S. fashion companies explored various methods to mitigate the evolving impacts of tariff hikes and policy uncertainties

 


Trends to watch: 

AI use could become increasingly prevalent in apparel sourcing as companies seek new technologies to improve operational efficiency and navigate a more complex, uncertain sourcing environment.Figure 2-24 AI is increasingly integrated into apparel sourcing and business operations


 

2026 Sourcing Trends & Outlook

USFIA's 2026 Sourcing Trends & Outlook is out with data from the full year of 2025. Members can log-in to the website to download it here

This is the thirteenth USFIA Sourcing Trends & Outlook Report, our annual look at the sourcing landscape for the fashion industry. 2025 will be remembered as the year of the Trump tariffs. U.S. imports fell as brands and retailers had to navigate a new level of uncertainty for sourcing and for costs. The reciprocal tariffs affected all countries, except for USMCA-qualifying production from Canada and Mexico.

As we look ahead to 2026, there still is a lot of uncertainty. The reciprocal tariffs were struck down by the Supreme Court, but the Trump Administration still is committed to impose tariffs above the MFN rates. The global tariffs imposed under Section 122 expire on July 24th and Administration officials say they will use other trade laws such as Section 301 and Section 232 to authorize more tariffs.

Even with the tariff disruptions, some of the major sourcing trends remain the same as in recent years. Asian suppliers continue to dominate apparel sourcing. The top seven apparel suppliers are China, Vietnam, Bangladesh, Cambodia, India, Indonesia, and Pakistan, and they ship 78% of apparel imports.

The top 5 sourcing trends in the report are:

  1. Asian apparel suppliers continue to dominate sourcing.
  2. China maintains its role as the top apparel supplier by quantity, and Vietnam is the top supplier by value.
  3. Average unit values for textiles and apparel imports had only modest increases.
  4. Some of the fastest growth in 2025 comes from major apparel suppliers.
  5. Despite tariff disruptions, FTAs and preference programs remain underutilized. CAFTA remains the major duty-free supplier.

 

While U.S. apparel imports decreased from many suppliers, there still are some clear winners from the tariff disruptions. Five of the top ten suppliers had double digit increases. Some of the fastest-growing suppliers are Asian-based apparel industries that took market share from China.

sourcing2026 fastest growing apparel suppliers

 

sourcing2026 applied tariff rates

Chart courtesy of Dr. Sheng Lu, Professor in the Department of Fashion and Apparel Studies, University of Delaware.

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