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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

Labor

  • Modaes: Fashion Evolution in the US: 87% of Companies to Strengthen Teams and Redefine Roles

    On a 17 August deadline, Modaes reports on recent findings on future hiring trends from USFIA's Benchmarking Survey 2026:

    Pablo Bueno | August 17, 2026

     
    The following is an excerpt....

    The U.S. fashion industry is addressing economic and trade uncertainty by expanding its workforce, but also by changing the profile of the talent it hires. Eighty-seven percent of companies surveyed by the United States Fashion Industry Association (USFIA) expect to increase hiring over the next five years, through 2031, compared to 75% who anticipated this in the previous edition of the study. This percentage matches the highest level recorded since the pandemic and contrasts with the growing importance of artificial intelligence (AI), regulation, and sustainability among the skills demanded by the sector.

    However, this growth in employment does not mean that the industry’s traditional needs will remain unchanged. The three profiles with the highest projected demand between 2026 and 2031 are data scientists, commercial compliance specialists, and environmental sustainability professionals. In all three cases, more than half of companies plan to increase their hiring, compared to about 40% that had planned to do so in 2025. The study links this trend to the adoption of artificial intelligence and data analytics, as well as to the growing complexity of regulatory, environmental, and social management.

    This transformation also affects the capabilities needed to manage the supply chain. Compliance with trade regulations is gaining importance in a context marked by tariffs, while traceability and the management of supplier information are becoming increasingly important. In fact, 69% of companies plan to adopt new technologies to better understand their supply chains—10% more than in 2025—and 63% plan to expand their efforts to map their supply chains and identify the origin of fibers and yarns.

    The three job roles expected to be in highest demand in the U.S. between 2026 and 2031 are data scientists, compliance specialists, and sustainability professionals

    Sustainability, according to USFIA, is thus establishing itself as another area that is reshaping companies’ internal structures. Seventy-three percent of respondents expect to allocate more resources to sustainability, social responsibility, and compliance in 2026, compared to 60% a year earlier. In addition, 40% plan to increase the operating budget dedicated to these areas, a 13% increase from 2025. More than half of the companies will increase resources to develop or acquire products made from sustainable textile materials and to prepare for new regulations, including extended producer responsibility (EPR), due diligence standards, and the Digital Product Passport.

    The most pronounced shift, however, is taking place around the circular economy. Forty percent of companies plan to increase hiring of professionals involved in recycling and resale over the next five years, compared to just 13% in 2025. The study links this trend to the growing strategic importance of circular business models and the expansion of services such as garment repair. At the same time, 38% of respondents plan to increase hiring of garment workers—the highest percentage since the study began.

    Only 62% of companies say they are optimistic about the future of the U.S. fashion industry, compared to 75% a year ago

    The rise of these roles coexists with more subdued demand for some of the functions traditionally associated with the industry. The study identifies relatively modest or even declining needs for positions such as general management, buying, merchandising, and fashion design. The authors note that artificial intelligence could particularly affect certain junior design and merchandising positions by automating analytical, administrative, and coordination tasks that these professionals have traditionally performed.

    The paradox is that this transformation of the labor market is occurring even as companies are becoming more cautious about the sector’s future. Only 62% of respondents say they are optimistic about the future of the U.S. fashion industry over the next five years—a 13-point drop from 2025 and the lowest percentage since the study began tracking this metric. The result reflects a scenario in which companies continue to anticipate growth and hiring but need different skill sets to thrive in an environment that is more technology-driven, regulated, and focused on traceability.

     ...

    Read the full article here. 

  • The Financial Express: BD's utilisation rate among US fashion cos fell sharply in 2026: Study

    On a 22 June deadline, the Finacial Express reports on recent US garment sourcing trends:

    Monira Munni | July 22, 2026

     
    The following is an excerpt....

    "Bangladesh's utilisation rate among US fashion companies declined sharply in 2026 as buyers intentionally maintain a diverse sourcing base prioritising capacity, flexibility, inventory agility and regional balancing in their sourcing strategy.

    Besides, slow speed-to-market, limited supply chain flexibility and compliance concerns still remain major challenges despite the country's continued position as one of the world's leading apparel sourcing destinations, said a study report.

    Bangladesh's utilisation rate dropped to 78.9 per cent in 2026 from 88.2 per cent a year earlier, according to the '2026 USFIA Benchmarking Study' released on Monday.

    The USFIA study report said Bangladesh remained tied with Vietnam, Cambodia and Indonesia as the most-utilised apparel sourcing destination in 2026.

    It, however, said utilisation rates among the major Asian sourcing destinations has declined compared with 2025.

    Utilisation rate for China fell to 73 per cent and Vietnam to around 78 per cent from 100 per cent each.

    Meanwhile, three non-Asian countries--Guatemala, Egypt and Jordan-- ranked among the top 10 sourcing destinations in 2026, with all recording higher utilisation rates in a year, the study revealed.

    Protectionist US trade policies and tariff-related uncertainty remained the fashion industry's biggest business challenge in 2026, with 92 per cent of surveyed companies identifying them as their primary concern.

    The average applied US tariff on apparel imports increased to 21.6 per cent in May 2026 from 15.2 per cent before the start of President Donald Trump's second term, it said.

    The report also found that China and Vietnam were perceived to face the highest risk of future US import trade barriers, while Bangladesh, India and Cambodia are considered to face a moderate level of risk.

    In contrast, suppliers in CAFTA-DR member countries and US domestic manufacturers were viewed as the least exposed to potential new trade restrictions.

    The USFIA conducted the survey between April and June 2026 among 30 leading US fashion companies."

     ...

    Read the full article here. 

  • The Financial Express: RMG exports to US fall 5.58pc as regional rivals gain

    On a 6 August deadline, the Finacial Express reports on recent sourcing trends:

    Monira Munni | August 6, 2026

     

    Bangladesh's readymade garment (RMG) shipments are struggling to keep pace with Vietnam, Cambodia, and Indonesia, with the trio recording growth in the US market during the first half of the 2026 calendar year.

    Data analysis shows amid China's steep drop, Vietnam's gain of the top market share, as well as the steady growth of Cambodia and Indonesia, are a clear pivot by American brands toward Southeast Asia.

    Bangladesh, being the second largest apparel exporter to the US, fetched $4.01 billion in the first half of 2026, down 5.58 per cent from $4.24 billion in the corresponding period of 2025, according to data released by the Office of Textiles and Apparel (OTEXA) on August 4.

    Exporters attribute this decline to rising geopolitical tensions, US-Iran conflicts, and economic uncertainties.

    weakening demand, which forced American consumers to prioritise essential spending and reduce apparel purchases.

    Besides, Bangladesh is losing its competitiveness because of several domestic challenges, including higher energy costs, inadequate gas and electricity supply, rising bank lending rates, and increasing labour costs, all of which have pushed up overall production expenses, they note.

    US apparel imports stood at $35.08 billion during January-June of 2026, marking a 7.71 per cent decline from $38.02 billion in the corresponding period of 2025.

    The contraction in US retail demand has triggered major shifts across key Asian sourcing destinations.

    Vietnam dethroned China as the top US apparel supplier, shipping goods worth $7.85 billion between January and June 2026, marking a modest year-on-year growth of 1.33 per cent.

    Cambodia led all major supplying nations in percentage growth, with year-on-year exports expanding 12.61 per cent to $2.13 billion in this period.

    Indonesia also posted gains, growing 3.67 per cent to $2.33 billion and moving ahead of India.

    India registered a sharp decline in apparel shipments to the US, which dropped 25.19 per cent to $2.12 billion from $2.83 billion in the first half of last year.

    China experienced a big decline, with shipments plummeting 37.65 per cent to $3.57 billion from $5.72 billion in the corresponding first six months of 2025.

    Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan tells The Financial Express that Vietnam and Cambodia are ahead of Bangladesh in terms of lead time and value-added products.

    Though they depend on imported raw materials, they get those within the shortest possible time from China because of their geographical proximity, he notes.

    Besides, Vietnam has Chinese investments, which Bangladesh failed to attract due to infrastructure bottlenecks, frequent changes in policies, and political instabilities after the 2024 uprising, the BGMEA leader explains.

    Indonesia is doing better because of its manmade fibre-based garment production, Khan says.

    According to a recent study by the US Fashion Industry Association (USFIA), American buyers are aggressively consolidating their supplier bases to combat compounding global supply chain disruptions and navigate rising protectionist tariffs, regulatory demands, and fluctuating transpacific freight costs.


     ...

    Read the full article here. 

  • The Financial Express: US retailers look to ramp up garment sourcing

    On a 22 June deadline, the Finacial Express reports on recent US garment sourcing trends:

    Monira Munni | June 22, 2014

    The following is an excerpt....

    "About 60 per cent of the surveyed respondents say they expect to somewhat increase sourcing from Bangladesh in the next two years and five per cent expect to strongly increase sourcing," said the study jointly conducted by the United States Fashion Industry Association (USFIA) and the University of Rhode Island (URI).

    Another 15 per cent expect no change in their current scale of sourcing in Bangladesh. Currently, 76.9 per cent of respondents source from Bangladesh.

    Companies are committed to compliance in general, with the vast majority of respondents (86 per cent) supporting the inclusion of environmental and labor clauses in future free trade agreements or preference programmes between the United States and its trading partners, the study said.

    "We surmise this reflects companies' commitments to improving factory safety and compliance in Bangladesh, and building a long-term relationship with local suppliers," said a statement issued by the USFIA.

    "Companies are not leaving Bangladesh and are committed to Bangladesh," it added.

    Julia K. Hughes, President of the USFIA, said "This data not only provides useful insight for the broader industry, but will also help the association focus our advocacy activities as we continue to work to eliminate the tariff and non-tariff barriers that impact fashion companies doing business globally."

    The study found that the majority of respondents (89 per cent) are optimistic about the five-year outlook for the US fashion industry but at the same time 81 per cent of respondents are worried about rising costs but expect only moderate cost increases in 2014.

    The other key findings included that China will remain the dominant supplier though Vietnam and Asia as a whole are seen as having more growth potential.

    Vietnam is the second-largest sourcing base for respondents, with nearly 90 percent of respondents currently sourcing from the southeast Asian nation. Indonesia, Cambodia, and Bangladesh also rank highly.

     

    Read the full article here. 

  • The New Nation: Low costs alone won’t sustain apparel growth

    On a 23 July deadline, the New Nation reports on recent findings about Bangladesh from USFIA's Benchmarking Survey 2026:

    July 23, 2026

     
    The following is an excerpt....

    "Bangladesh’s ready-made garment industry has reached another significant milestone by overtaking China in the US apparel market for the first time in decades.Apparel

    Yet the latest US Fashion Industry Association (USFIA) Benchmarking Study offers a timely reminder that success in today’s global sourcing landscape is no longer measured by cost alone.

    Although Bangladesh remains among the world’s most-utilised sourcing destinations, its utilisation rate has fallen from 88.2 per cent to 78.9 per cent.

    The report rightly cautions against interpreting this as a decline in competitiveness. Instead, it reflects a fundamental shift in global sourcing strategies driven by geopolitical uncertainty, protectionist trade policies and companies’ determination to diversify supply chains.

    For Bangladesh, however, the message is unmistakable. The country’s traditional strengths-competitive pricing and large-scale production – are no longer sufficient to secure long-term leadership.

    Global fashion brands increasingly demand speed, flexibility, traceability and sustainability alongside affordability.Fashion & Style

    The report identifies several structural weaknesses that policymakers and industry leaders can no longer afford to ignore. Slow lead times continue to undermine Bangladesh’s competitiveness, while dependence on imported fabrics and accessories limits its ability to respond quickly to changing market demands.

    Equally concerning are the country’s modest scores in labour, social and environmental compliance, areas that are becoming decisive as international regulations grow stricter.

    The industry’s production model also requires modernisation. Buyers are increasingly seeking smaller, specialised orders and agile manufacturing rather than relying solely on mass production of basic garments.

    Bangladesh’s limited flexibility in accommodating such orders risks excluding it from fast-growing market segments.

    Encouragingly, nearly half of the surveyed US companies still intend to increase sourcing from Bangladesh over the next two years, underscoring continued confidence in the country’s manufacturing capability. This provides a valuable window of opportunity-but not an indefinite one.Geographic Reference

    The government’s role is crucial. Investments in ports, transport infrastructure, customs efficiency and domestic textile capacity must accelerate. At the same time, stronger enforcement of labour rights, environmental standards and supply-chain transparency should be viewed not as regulatory burdens but as strategic investments in future competitiveness.

    Bangladesh has earned its place as a global apparel powerhouse through resilience and enterprise. Yet the next chapter of Bangladesh’s garment success story will depend not on how cheaply it can produce, but on how quickly and sustainably it can adapt."

     ...

    Read the full article here. 

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.

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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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