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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

AGOA

  • USFIA Joins Letter to USTR on AGOA

    On March 25th, the United States Fashion Industry Association (USFIA) joined other industry associations in sending a letter to Florie Liser, Assistant U.S. Trade Representative for Africa, following up on our recent industry roundtable on the African Growth & Opportunity Act (AGOA). The letter provides the results of the member industry survey about additional elements or benefits the U.S. could provide to incentivize additional investment in AGOA countries, and the impact if AGOA is not renewed in a timely manner and for a long term. The letter is available here.

  • USFIA Joins U.S. & African Companies in Call for Immediate Renewal of AGOA

    On August 13th, the United States Fashion Industry Association (USFIA) joined 6 other fashion and retail associations in the United States and Africa in releasing a statement calling for immediate renewal of the African Growth & Opportunity Act (AGOA). In the statement, the groups also call for long-term renewal of at least 15 years, as well as long-term renewal of the third-country fabric provision and application of the provision to all AGOA beneficiaries. The statement will be posted on all organizations' websites and distributed to the media, as well. Following the recent U.S.-Africa Leaders Summit in Washington, D.C., AGOA continues to be a top priority for USFIA and many of our members and we will remain engaged on the issue. The full statement is available here and our press release is available here.

  • USFIA Publishes Op-Ed on AGOA in Apparel Magazine

    On July 29, 2014, USFIA President Julia K. Hughes published an op-ed in Apparel Magazine on the need to renew the African Growth & Opportunity Act (AGOA) immediately and for the long term. An excerpt:

    At a time when Congress seemingly can't agree on anything, AGOA is a non-controversial program with nearly universal support as one that's good for business in the U.S. and good for economic growth in sub-Saharan Africa. Unfortunately the clock has been ticking for the program, which is scheduled to expire on Sept. 30, 2015, but Rep. Nunes' statement and the scheduling of the long-awaited hearings are signs it finally could be renewed.

    But while there's still one year left, time has all but run out before the fashion industry will slow down orders in advance of the scheduled expiration, so let's hope it's renewed quickly.

    "The only way we can continue to source in sub-Saharan Africa is if the duty-free status is maintained," explains the head of international trade and customs at one of the United States Fashion Industry Association's (USFIA) member companies, a small importer and manufacturer of niche women's and children's apparel, who shared the company's story of sourcing in AGOA and the problems that will arise if the act is not renewed soon.

    Currently, 40 sub-Saharan African countries are eligible for the program, which has the purpose of facilitating the region's economic growth and integration through two-way, duty-free trade with the U.S.

    The program includes a provision called the third-country fabric benefit, which allows apparel producers in most beneficiaries to use third-country fabric (or, fabric from any other country in the world) and still get duty-free treatment in the United States. According to the U.S. International Trade Commission (USITC), in 2013, 98.48 percent of apparel imported into the U.S.from AGOA-eligible countries was duty free. This is a significant savings for companies sourcing in a region that would otherwise be cost-prohibitive, while also providing jobs and economic opportunities in the region.

    But many companies have already taken action to either reevaluate their sourcing plans, or even pull out from the region because they simply can't afford to do business there without the duty savings, which are still uncertain, at best.

    The entire op-ed is availabe on the Apparel Magazine website.

  • USFIA Urges House to Quickly Approve AGOA Renewal

    On May 18th, the United States Fashion Industry Association (USFIA) joined a coalition statementurging quick, long-term renewal of the African Growth & Opportunity Act (AGOA). The signatories included U.S. fashion and retail advocacy groups as well as the African Cotton & Textile Industries Federation (ACTIF). As you know, the Senate passed AGOA renewal, and the House is expected to consider it, soon. The statement is available here, and was sent to press, too.

  • WWD: Industry Supports House-Passed Bill to Enhance AGOA Program

    By Kristi Ellis

    “A large part of the bill focuses on increased capacity building opportunities and I think that is really important,” said Julia Hughes, president at the U.S. Fashion Industry Association. “We think it’s also really important to enhance policies to encourage more technical assistance, especially for more training for businesses in eligible countries on how to do business with American companies.”

    Hughes said one reason the AGOA trade program and benefits appear to be underutilized is because many standards and requirements are in place that can be difficult to navigate.

    Click here to read the entire article on the WWD website.

  • WWD: Obama Reinstates Madagascar Under African Growth & Opportunity Act

    By Kristi Ellis

    “Madagascar had become a relatively big supplier, but it was obviously hurt by not having duty-free benefits,” said Julia Hughes, president of the U.S. Fashion Industry Association. “We are [pleased] by today’s action and look forward to speedy implementation of the third-country fabric benefits as well as information from Madagascar that verifies they have the appropriate enforcement mechanism in place.”

    Click here to read the entire article on the WWD website.

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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.

Learn More About USFIA
Learn About the Fashion Industry
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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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10
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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60
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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121.7
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.

Read our latest stories on tariffs

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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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