USFIA - United States Fashion Industry Association

2023 Sourcing Trends and Outlook Report

This week, the U.S. Fashion Industry Association published our tenth annual Sourcing Trends and Outlook report (available free of charge to USFIA members and affiliates), covering five main trade data trends and providing a peek into the “crystal ball” at the future of textile, apparel, and fashion sourcing and trade policy.

This year’s top trend: While China remains the major supplier to the U.S. market, they are no longer a dominant supplier. This finding tracks with the American Chamber of Commerce in China’s 25th annual China Business Climate Survey report that we covered last week. The AmCham China report found that, for the first time, companies are less willing to invest in China and China’s strategic priority is declining.

So, if China is no longer a dominant supplier in the U.S., who is challenging them?

Türkiye is the new top supplier of U.S. fabric imports, with a 15% share by quantity. China ranks as the number two supplier, shipping 13% of U.S. fabric imports by quantity.

If there is a success story from the COVID-19 pandemic, it’s the Turkish textile and apparel industry’s agility, allowing it to meet the nearshoring and flexibility in production with no-stock that the “new normal” required of the global apparel supply chain. U.S. imports from Türkiye grew rapidly during the pandemic, going from the tenth largest supplier of textiles and apparel in 2020 to the sixth largest in 2021 and now the third largest in 2022.

USFIA’s Sourcing Partner, IHKIB, also shared the priorities for the Turkish apparel industry in 2022 and 2023. Here’s what they had to say:

The Turkish apparel industry is also far ahead of its competitors in many areas including sustainability and an eco-friendly approach to production. Now, with the announcement of the European Green Deal, another traditional competitive feature of the industry will fit to the emerging sustainable global apparel supply chain: good-quality durable apparel goods with less resource-consuming, but still stylish, materials!

The apparel industry of Türkiye has recently announced the roadmap towards sustainability and green production, including digitalization and the establishment of a circular supply chain in apparel with our esteemed international partners. All the efforts of the industry are to increase the added value in production, the sustainable design and fashion capability of the industry, and rise the unit export price in apparel exports.

Interested in our other top sourcing trends, like where to find new sourcing opportunities? Our Sourcing Trends and Outlook report is free to all USFIA members and affiliates. Contact us to join today!

African Growth & Opportunity Act (AGOA)

IThe African Growth & Opportunity Act (AGOA) was enacted in May 2000 to expand U.S. trade with Sub-Saharan Africa and stimulate the economies of the participating countries. Each year, the President of the United States is eligible to determine the countries eligible for AGOA benefits, which include trade preferences that essentially allow goods produced in the eligible countries to enter the United States duty-free. There are currently 40 countries eligible for AGOA benefits. The three most recently eligible countries are Cote d’Ivoire, Guinea, and Niger, all of which held democratic elections.

The AGOA program has brought significant benefits to the participating countries, but it is scheduled to expire very soon in September 2015. The program includes a “third-country fabric benefit,” which allows apparel producers in AGOA-eligible countries to use third-country fabric and still get duty-free treatment in the United States. The benefit was initially scheduled to expire on September 30, 2012, two years before the expiration of the program. On August 2, 2012, Congress passed legislation renewing the benefit until September 2015, when the program expires. The legislation also adds South Sudan as a beneficiary country under AGOA. More information on the legislation is available from the House Ways & Means Committee here.

President Obama signed the legislation on Friday, August 10, 2012. The AGOA extension and the Burma sanctions extension are effective immediately. The CAFTA-DR fixes will go into effect 60 days after the publication of the Presidential Proclamation and the notification of the Organization of American States (OAS), on or around October 15, 2012.

USFIA Position

The United States Association of Importers of Textiles & Apparel (USA-ITA), now USFIA, was an active voice in the effort to renew the AGOA third-country fabric benefit.

On March 9, 2012, USA-ITA (now USFIA) joined a group of apparel and retail associations in sending a letter to the leadership of the U.S. Senate Finance Committee and the U.S. House Ways & Means Committee calling for the renewal of the Third-Country Fabric Provision of the African Growth & Opportunity Act (AGOA). The letter explains that the provision “helps U.S retailers achieve lower costs and diversify their supply chains,” as well as “solidifies a broader strategic partnership with the United States based on development through trade.”

On June 13, 2012, USA-ITA (now USFIA) joined a multi-industry group of trade associations and other business organizations in sending a letter to the leadership of the U.S. Senate Finance Committee and U.S. House Ways & Means Committee again calling for quick renewal of the Third-Country Fabric Provision of AGOA, along with passing the CAFTA "fixes." The letter identifies consequences of not renewing AGOA:

Moreover, the impact is by no means limited to sub-Saharan Africa. In fact, the delay in renewing this non-controversial measure, which is at the core of the AGOA apparel provisions, has already forced many U.S. companies to shift their 3rd and 4th quarter 2012 orders to other countries to avoid uncertainties.

The delay in renewing this provision is increasingly sending the wrong message to African countries on the eve of the largest annual U.S.-Africa summit — the AGOA Forum, which will be held in Washington on June 14-15. Inaction is difficult to justify given that the Third Country Fabric provision has proven beneficial to U.S. businesses and non-controversial in both Congress and in the U.S. business community.

Regardless, as uncertainty grows over renewal, African apparel producing countries have already experienced a 30% drop in apparel orders since January 2012. This decline in orders has already led to the loss of thousands of jobs in Africa, with hundreds of thousands more hanging in the balance.

On July 25, 2012, USA-ITA (now USFIA) also sent letters to U.S. Senators Tom Coburn (R-OK) and Robert Menendez (D-NJ), urging them to drop their holds on the AGOA extension.

Asia-South Pacific Trade Preferences Act

The Asia-South Pacific Trade Preferences Act (S.1443) is a bill that would provide duty-free, quota-free benefits to 13 of the world’s least-developed countries (LDCs) in Asia and the South Pacific, including Afghanistan, Bangladesh, Cambodia, East Timor, Maldives, and Nepal. U.S. Senator Dianne Feinstein (D-CA) introduced the bill on July 28th, 2011, and it has been referred to the U.S. Senate Finance Committee. During the Asia Pacific Economic Cooperation (APEC) meetings in Hawaii in November 2011, Senator Feinstein urged Congress to expand trade benefits for these LDCs. “We should help these countries help themselves by opening the U.S. market to their exports as we have done for other developing countries in the past,” she said in a statement.

On February 28, 2013, Senator Dianne Feinstein introduced the Asia-South Pacific Trade Preferences Act of 2013 and it was sent to the Senate Finance Committee for review.

USFIA Position

The United States Fashion Industry Association (USFIA), formerly the United States Association of Importers of Textiles & Apparel (USA-ITA), is a strong supporter of removing barriers to trade, and specifically supports the Asia-South Pacific Trade Preferences Act because it would address current gaps in U.S. trade preference programs and create a foundation for sustainable trade partnerships with some of the poorest developing countries.

On February 17, 2012, USA-ITA (now USFIA) joined fellow apparel and retail associations in sending a letter to Senator Feinstein expressing support for the bill and urging her to advance it in Congress.

On February 28 2012, Senator Feinstein circulated the letter with a “Dear Colleague” letter urging her colleagues to co-sponsor the bill, available here.

HGI: Sourcing Diversification 2.0: Benchmarking Study Identifies Longer-Term Strategies

On a 27 July deadline, Hertzmann Global Initiative reports on recent findings from USFIA's Benchmarking Survey 2026 regarding sourcing diversification:

Lauren Parker | July 27, 2026

Key Insights

Brands are sourcing across more regions while consolidating vendors and taking a more targeted approach to China.
With tariffs the new normal, companies are shifting from short-term workarounds to long-term strategies.
Flexibility, compliance, traceability and AI are becoming key sourcing differentiators, while nearshoring growth remains constrained by limited investment.

Diversification is no longer about quantity, but quality.

U.S. fashion companies are no longer just adding more sourcing countries to spread out risk, but taking a more strategic and nuanced approach to get the right suppliers. These decisions are driven by tariffs, geopolitical uncertainty, compliance requirements and long-term supply chain resilience, and they mark a new approach.

This shift is illustrated by the findings of the 2026 U.S. Fashion Industry Benchmarking Studybased on a survey of 30 major fashion companies representing an industry cross-section. In a webinar hosted by the United States Fashion Industry Association (USFIA), Dr. Sheng Lu, professor of Fashion and Apparel Studies at the University of Delaware, and Emilie Delaye, graduate instructor, noted a “significant evolution” in sourcing strategy that they call Sourcing Diversification 2.0.

The report found that U.S. companies are focused on a range of strategies:

Vendor consolidation

“Even though companies still maintain a geographically diverse sourcing base, they’re consolidating their existing sourcing base, especially at the vendor level,” Dr. Lu said, describing the approach as “more measured and targeted.”

Asian countries still dominate the top sourcing destinations, but in-country vendor rates dropped. Meanwhile, non-Asian sourcing regions—notably Guatemala, Egypt and Jordan—gained market share, reflecting a “regional balancing.”

Mexico and CAFTA-DR aren’t necessarily reaping the rewards, however. Despite tariff and geographic advantages, respondents showed “limited plans to significantly increase sourcing from the Western Hemisphere,” and the region needs “more investment to move beyond T-shirts.” Africa also has headwinds, where the short-term renewal of the African Growth and Opportunity Act (AGOA) has created investment uncertainty.

Tariff relief

Ever-evolving tariffshave proven to be the “single most influential challenge” driving Sourcing Diversification 2.0.

“The impact of tariffs goes far beyond just cost,” Dr. Lu said, and companies are responding differently to tariffs than they did a year ago. Instead of shifting production around to avoid tariffs, they’re leaning in on how to manage this more permanent situation. This includes medium- and long-term strategies like applying for duty refunds, using First Sale programs and restructuring sourcing operations within existing tariff rules.

Supplier reporting capabilities

The study also found that sourcing decisions are increasingly shaped by supplier capabilities, not just cost. Flexibility, agility and compliance capabilities have grown in importance as brands navigate expanding traceability, ESG reporting and forced labor requirements. Companies only want to work with the most capable vendor, one who can provide not just a product, but also the data needed to eventually report to a variety of stakeholders.

“And these vendors definitely need to have this compliance capability,” said Delaye.

The China factor

While companies continue pursuing diversified sourcing portfolios, “significantly fewer” respondents now plan to reduce sourcing from China compared with previous years. Dr. Lu, however, cautioned against interpreting this as a return to previous sourcing patterns.

“I still don’t see brands and retailers planning to substantially move their finished garment sourcing back to China, but China is always relevant,” he said, noting the country’s competitive flexibility, raw materials and vertically integrated production, and low minimum order quantities (MOQs).

AI solutions

To help countries navigate all these issues, artificial intelligence is becoming a more important sourcing tool. Survey respondents reported using it for demand forecasting, inventory planning, sustainability tracking, shipping optimization and product development.

“Sourcing diversification 2.0 is really going to leverage these technologies, and AI is going to play an important part,” Dr. Lu said.

Looking ahead, the outlook is anything but rosy. More than half of respondents expect sourcing volumes to increase in 2026, but most anticipate only modest growth amid forecasts of essentially flat U.S. apparel retail sales.

“None of the challenges [the industry] faced last year are gone,” Dr. Lu said. “They’re still there, and somehow have become even worse. Businesses hate uncertainty.”

Read the full article here.

Industry Roundtable with USTR

On December 19, 2013, USFIA President Julia K. Hughes, Washington Counsel David Spooner, and member companies participated in an industry roundtable discussion with Florie Liser, Assistant U.S. Trade Representative for Africa, and Gail Strickler, Assistant U.S. Trade Representative for Textiles & Apparel, to discuss impact and recommendations for extension of the African Growth & Opportunity Act (AGOA) in 2014.

Modaes: U.S. Restructures Sourcing: China’s Share Drops to 9.7%, Slips to Third Place

On a 6 August deadline, Modaes reports on recent findings on shifting sourcing trends from USFIA's Benchmarking Survey 2026:

Pablo Bueno | August 6, 2026

China continues to lose ground in supplying the U.S. fashion market, but companies are no longer simply shifting production to a single alternative market. U.S. companies are opting for a much broader diversification of their supplier network, incorporating new countries and spreading the risk across a greater number of sources, according to the 2026 Fashion Industry Benchmarking Study conducted by the United States Fashion Industry Association (USFIA) and the University of Delaware.

The most significant finding of the study is that China’s share of U.S. fashion imports fell to 9.7% by value during the first five months of 2026, down from 16.7% a year earlier. This marks the first time in several decades that China has fallen behind both Vietnam, which holds a 22.2% share, and Bangladesh, with 11.3%. At the same time, only 12% of the companies surveyed now source more than 30% of their supplies from China, compared to 19% in 2025 and 22% in 2024.

For the first time, China (9.7%) trails Vietnam (22.2%) and Bangladesh (11.3%) as a supplier of fashion to the United States

However, the report emphasizes that reducing dependence on China no longer means shifting orders to one or two specific countries, as had been the case in previous years. Vietnam and Bangladesh are also losing relative importance among U.S. companies: the percentage of companies that purchase more than 10% of their products from Vietnam has fallen from 76% to 58%, while that from Bangladesh has dropped from 56% to 47%. Instead, new destinations are emerging that are absorbing a growing share of orders, particularly Cambodia and other Asian markets, as part of a much broader regional diversification strategy.

This trend is also reflected in the number of markets from which U.S. companies source their products. In 2026, respondents reported sourcing from 49 countries, up from 46 a year earlier, while 65% of large companies now source products from ten or more different markets. However, the strategy is also shifting toward greater optimization of existing supply networks, with less interest in adding new suppliers and a greater emphasis on strengthening relationships with strategic partners that provide flexibility, production capacity, and traceability.

In 2026, orders from U.S. fashion companies to countries such as Cambodia, Guatemala, Egypt, and Jordan have increased

Although Asia remains the world’s leading manufacturing hub, the study identifies a growing shift toward other markets. Guatemala, Egypt, and Jordan are among the countries seeing the sharpest increase in use by U.S. companies, while the share of imports from regions outside Asia has reached its highest level in more than a decade. In the first five months of 2026, Asia’s share of U.S. fashion imports fell to 70.8%, down from 72.6% the previous year.

Despite this decline in prominence, China retains competitive advantages that make it difficult for international companies to completely abandon the country. The report notes that many companies believe they have already achieved their desired level of exposure to China and are now focusing their efforts on optimizing their overall supply chain. Respondents continue to particularly value China’s cost competitiveness, production flexibility, ability to handle small minimum order quantities, and the high degree of vertical integration in its textile industry.

In 2026, Asia will continue to account for nearly 71% of U.S. fashion imports, down from 73% in 2025

According to the study, the ongoing process of decoupling from China is driven less and less by economic factors and more by geopolitical, regulatory, and compliance issues. Trade uncertainty, the risk of new U.S. restrictions, and concerns related to forced labor are emerging as the main factors redefining the global supply chain landscape for the fashion industry.

Who Benefits from the U.S.’s New Sourcing Strategy? The gradual shift of orders away from China is not benefiting a single country, but rather an increasingly broad group of markets. The USFIA study identifies Cambodia as one of the main beneficiaries of this trend, consolidating its position as an alternative for labor-intensive apparel manufacturing. Alongside Cambodia, Guatemala, Egypt, and Jordan are seeing growing interest from U.S. companies, driven both by their trade agreements with the United States and by the pursuit of greater geographic diversification.

The report also highlights the growing appeal of the countries that are part of the CAFTA-DR agreement (the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua), which are gaining prominence due to their proximity to the U.S. market and the tariff advantages they offer. For many companies, these markets allow them to reduce lead times and diversify risks without relying exclusively on Asia—a strategy that is gaining importance in a context marked by trade and geopolitical uncertainty.

Read the full article here.

Modaes: US Fashion Resists Tariff Hikes: Only 10% Boosts Local Output

On a 19 August deadline, Modaes reports on recent findings on the effects of tariff hikes on local output from USFIA's Benchmarking Survey 2026:

Pablo Bueno | August 19, 2026

Tariffs are shaping the strategies of U.S. companies, but the return of production to the United States remains minimal. They are hurting the bottom line for 85% of companies, and 74% are facing higher procurement costs.

U.S. tariffs are not leading to a massive return of fashion production to the country. Only 10% of U.S. companies surveyed by the United States Fashion Industry Association (USFIA) report that they have increased their sourcing of “Made in USA” products in response to the tariff hikes. This finding reinforces one of the main conclusions of the 13th edition of the Fashion Industry Benchmarking Study: protectionism is disrupting supply chains, but it is not leading to a significant reshoring trend.

The impact of tariffs, however, is directly affecting companies’ bottom lines. Eighty-five percent of respondents say that tariff increases have harmed their companies’ finances, up from 78% the previous year, while 74% report having incurred higher procurement costs as a result, up from 72% in 2025. The study also notes that various research studies estimate that the decline in annual gross margins for U.S. fashion companies since 2025—due to increased tariffs and sourcing costs—ranges from 120 to 360 basis points.

Companies’ strategy is thus shifting toward managing the impact of tariffs rather than moving manufacturing to the United States. Among the main responses are applying for tariff refunds, using the “first sale” doctrine, renegotiating contracts with suppliers, and diversifying sourcing. At the same time, more than half of respondents say that tariffs have reduced the resources available for other areas considered critical, such as sustainability and product innovation, compared to 39% in 2025.

56% of the companies surveyed by USFIA report sourcing from the United States in 2026, compared to 40% in 2025 and 2024

There is an increase in domestic sourcing, but the study itself qualifies its scope. 56% of the companies surveyed report sourcing from the United States in 2026, compared to 40% in 2025 and 2024. However, all of these companies also purchase from more than ten countries, and U.S. products account for less than 10% of their total procurement volume or value. USFIA concludes that the increase in domestic sourcing should be interpreted as one component of a diversification strategy, rather than as a substitute for imports or a return of production to the country.

Nor is this trend limited to the United States. Companies are maintaining a geographically diversified network while focusing their relationships on strategic suppliers capable of offering flexibility, production capacity, and regulatory compliance. In 2026, the companies participating in the study report sourcing from 49 countries, up from 46 in 2025, and 65% of companies with more than 1,000 employees purchase from at least ten markets.

Rather than moving production to the U.S., companies are managing tariffs by requesting refunds, renegotiating contracts, and diversifying their suppliers

As part of this strategy, nearshoring and the Western Hemisphere are gaining ground, although they still face limitations compared to Asia. Seventy-six percent of respondents report sourcing from CAFTA-DR countries (up from 64% in 2025), and the percentage sourcing more than 10% of their products from this region has risen from 14% to 24%. The advantages of geographic proximity, lower compliance risk, and trade agreements partially offset higher sourcing costs and reduced production flexibility.

The shift in strategy also reflects the fact that companies have stopped simply seeking new countries to replace previous ones. The report notes that, looking ahead to the next two years, U.S. companies plan to place greater emphasis on supplier consolidation, strategic alliances, and operational resilience than on continuing to expand the number of markets and suppliers. The goal is to maintain geographic diversity while working more closely with partners considered strategic.

Tariff policy remains, in fact, the primary business challenge for the U.S. fashion sector in 2026. And companies do not appear to view increased trade protection as the solution to their competitiveness issues: 100% of respondents support exempting textile and fashion products from new tariff increases, as well as maintaining the United States-Mexico-Canada Agreement (USMCA) and establishing incentives to boost textile and apparel production in the Western Hemisphere.

Read the full article here.

New Age: Fewer US buyers take RMG from Bangladesh

On a 21 July deadline, New Age reports on changing sourcing trends as informed by USFIA's Bencharking Survey 2026:

Moinul Haque | July 21, 2026

Bangladesh’s utilisation rate among US fashion companies has sharply fallen in 2026, while slow speed-to-market, limited supply chain flexibility, and compliance concerns remain major challenges though the country stays one of the world’s leading apparel sourcing destinations.

According to the 2026 USFIA Benchmarking Study that covered until May, which was released on Monday, Bangladesh’s utilisation rate dropped to 78.9 per cent in 2026 from 88.2 per cent a year earlier.

Utilisation rate refers to the frequency with which a sourcing destination was used divided by the total number of survey respondents.

The report said that Bangladesh had tied with Vietnam, Cambodia, and Indonesia as the most-utilised apparel sourcing destination in 2026 based on the utilisation rate.

However, it said, utilisation rates among the major Asian sourcing destinations had declined compared to the 2025 survey.

China’s utilisation rate fell from 100 per cent to 73 per cent, while Vietnam’s dropped from 100 per cent to about 78 per cent.

The report, however, emphasised that the decline in Bangladesh’s utilisation rate should not be interpreted as a loss of competitiveness.

Instead, it said, the decline reflected a broader transformation in global sourcing strategies.

According to the report, US brands identified president Trump’s protectionist trade policies as their biggest business challenge in 2026, prompting companies to reduce their sourcing exposure to countries considered most vulnerable to future trade restrictions, particularly China and Vietnam.

Meanwhile, three non-Asian countries – Guatemala, Egypt, and Jordan – climbed to the top 10 sourcing destinations in 2026, with all of them recording higher utilisation rates than a year earlier.

According to the report, protectionist US trade policies and tariff-related uncertainties remained the fashion industry’s biggest business challenge in 2026, with 92 per cent of the surveyed companies identifying them as their primary concern.

It said that the average applied US tariff on apparel imports had increased to 21.6 per cent in May 2026 from 15.2 per cent before the start of President Donald Trump’s second term.

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

In contrast, suppliers in seven CAFTA-DR member countries – USA, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua – and US domestic manufacturers were viewed as the least exposed to potential new trade restrictions.

The survey for the 2026 Fashion Industry Benchmarking Study was carried out between April and June 2026 and covered 30 leading US fashion companies.

Bangladesh, the report also said, achieved a historic milestone by surpassing China in the US apparel market for the first time in decades.

During the first five months of 2026, Bangladesh accounted for 11.3 per cent of US apparel imports by value, placing it second only to Vietnam, which held a 22.2 per cent share, while China’s share declined to 9.7 per cent.

Nearly 47 per cent of the surveyed companies reported that Bangladesh represented more than 10 per cent of their total sourcing value or volume, highlighting the country’s continued strategic importance to global buyers.

Despite these achievements, the report identified the speed to market as one of Bangladesh’s weakest competitive areas.

Bangladesh received a score of only 2.3 on 5 for speed to market, reflecting persistent logistical constraints and the country’s geographical distance from major consumer markets, it said.

While Bangladesh continued to excel in cost-efficient, large-scale production, its longer lead times became a competitive disadvantage as international retailers increasingly demanded faster inventory replenishment and shorter fashion cycles, findings suggested.

Despite the lower utilisation rate, the report presented an optimistic outlook for Bangladesh.

It ranked Bangladesh as the second most popular ‘rising star’ for future sourcing expansion, with 46.7 per cent of the respondents planning to increase sourcing from the country over the next two years, second only to Indonesia.

The report said that Bangladesh was expected to remain a dominant force in global apparel sourcing through 2028.

However, it said, sustaining that position would depend on the country’s ability to improve logistics, reduce lead times, strengthen domestic textile production, enhance labour and environmental compliance, and increase manufacturing flexibility while preserving its long-standing cost advantage.

The report also highlighted Bangladesh’s limited flexibility in accommodating smaller and specialised orders.

It said that Bangladesh had received a minimum order quantity score of 2.6, significantly below China’s leading score of 4.0.

According to the study, this indicated that Bangladesh remained primarily geared towards high-volume production of basic garments rather than smaller, more diverse production runs increasingly sought by international brands.

Vertical integration remained an area requiring improvement, the report also said.

Although Bangladesh scored 3.4 for vertical manufacturing capability, outperforming several competing countries, it continued to trail China, which scored 4.8, and India, which scored 4.0.

Most US fashion companies, the report said, still depended heavily on China for textile raw materials, including fabrics and accessories, increasing Bangladesh’s dependence on imported inputs and limiting its ability to shorten production lead times.

Bangladesh received a labour and social compliance score of 2.2 and an environmental compliance score of 2.4, placing it among the lower-performing sourcing destinations in these areas, it also said.

According to the report, improving traceability, labour standards, and environmental performance would be essential as international brands faced increasingly stringent regulatory requirements, including the Uyghur Forced Labor Prevention Act and emerging Extended Producer Responsibility laws.

The study found that Bangladesh was perceived as carrying a relatively high risk from future US import trade barriers, receiving a score of 2.2.

Unlike suppliers in the Western Hemisphere that benefited from preferential trade agreements, the survey noted, Bangladesh remained subject to standard tariff arrangements, increasing cost pressures at a time when protectionist trade policies were becoming a growing concern for apparel companies.

Respondents awarded Bangladesh a sourcing cost score of 4.3 on 5, tying it with China as the highest-rated sourcing destination for cost competitiveness.

The report said that Bangladesh’s established low-cost manufacturing base continued to provide international fashion brands with an effective hedge against rising global inflation and shipping costs.

According to the report, US fashion companies were moving away from the traditional concentration of orders in the three largest sourcing countries – China, Vietnam, and Bangladesh – and were increasingly distributing production across a wider range of markets to reduce geopolitical, regulatory, and supply chain risks.

During 2026, companies reported sourcing from 49 countries, up from 46 a year ago.

Emerging destinations such as Indonesia, Cambodia, Egypt, Jordan and Guatemala, the report said, were attracting increasing attention as buyers sought a more geographically balanced sourcing portfolio.

It said that imports from non-Asian countries had reached 15.8 per cent of the total US apparel imports, the highest level in more than a decade.

The report also said that buyers were consolidating rather than expanding their supplier networks.

Nearly half of the surveyed companies said that they planned to work with fewer suppliers over the next two years, preferring stronger strategic partnerships with vendors capable of providing greater traceability, compliance, and operational resilience.

Read the full article here.

Taiwan Textile Federation: Tariffs and trade policies are the most pressing issues for fashion sourcing executives in 2026.

On a 23 July deadline, the Taiwan Textile Federation highlights USFIA's 2026 Benchmarking Study:

July 23, 2026

The following is translated into English via Google Translate from the original source.

According to the 13th Annual Fashion Industry Benchmarking Study 2026 released by the U.S. Fashion Industry Association (USFIA), amid continued volatility in the global trade environment, U.S. fashion companies are accelerating adjustments to their procurement strategies to cope with the impact of tariffs, including renegotiating contract terms with suppliers, diversifying their sourcing sources, and strengthening supply chain resilience.

The report points out that although trade policy remains the most pressing issue for fashion industry executives in 2026, many companies have gradually shifted from short-term crisis response to long-term supply chain planning, focusing on supply chain optimization, compliance building, and operational resilience enhancement to cope with the increasingly complex global economic and trade environment.

This study was conducted by Professor Sheng Lu and Research Assistant Emily Delaye of the Department of Fashion and Apparel Studies at the University of Delaware. The survey was from April to June of this year 2026, and interviewed senior executives of 30 major fashion brands retailers importers and wholesalers in the United States.

The survey results show that 92% of the surveyed companies believe that protectionist trade policies and related policy uncertainties (including tariff shocks) are one of the two most pressing challenges facing companies this year, followed by inflation and the overall economic outlook in the United States.

Among the overall operational risks faced by businesses, geopolitical management ranked fifth. Respondents pointed out that ongoing or emerging geopolitical tensions, such as the Russia-Ukraine war, Middle East conflicts, and U.S.-China relations are increasingly affecting global procurement, logistics, and business operations; among them, the U.S.-Iran conflict was listed as one of the major sources of risk that could disrupt the garment supply chain this year.

Compared to 2025, businesses are significantly more concerned about several challenges this year. Among them, rising production or procurement costs has jumped to the third largest challenge, while foreign protectionist trade policies and policy uncertainty continues to rank high. In addition, the importance of addressing the risk of forced labor has also increased significantly, rising four places from last year, indicating that businesses are paying increasing attention to supply chain compliance requirements.

Regarding the actual impact of U.S. tariff policies, more companies reported a negative impact on their financial performance compared to a year ago, not only increasing procurement costs but also reducing resources invested in sustainable development and product innovation. However, companies are also actively taking various countermeasures, including applying for tariff refunds, renegotiating supplier contract terms, and accelerating the diversification of procurement sources to mitigate the impact of tariffs.

USFIA President Julia Hughes stated that it is “not surprising” that trade policy and tariffs have become the most pressing issues for businesses this year. She pointed out that the biggest difference this year is that Brands and retailers are shifting their strategies for dealing with tariffs and trade uncertainty, with successful sourcing models moving from an emphasis on “diversification” to “consolidation.”

Qu stated that as tariff challenges will continue to impact corporate costs and supply stability in the foreseeable future, companies are committed to maintaining a diversified geographical sourcing layout integrating their sourcing networks and establishing closer, long-term partnerships with overseas strategic partners who possess sourcing flexibility and strong legal compliance capabilities.

Julia Hughes further pointed out that fashion brands and retailers generally believe that the Trump administration's tariff policies have had a direct and significant negative impact on their business operations, including impacts on financial performance, increased procurement costs, and reduced resources available for new products development and innovation. She stated that compared to the past focus on “avoiding” tariffs, companies are now more inclined to manage tariff costs through diversified strategies, with the primary measure being applying for carefree funds under the international emergency economic Powers Act (IEEPA).

Furthermore, the United States has continued to escalate its tariff measures recently. On July 15th, the office of the United States trade representative announced a 25% tariff on Footwear imported from Brazil; meanwhile, on July 20th, president Trump announced a 50% tariff on Canadian imports (including apparel and textiles), indicating that the United States protectionist trade policies are continuing to intensify, and the global fashion supply chain will continue to face greater uncertainty and adjustment pressure in the future.

Read the full article here

U.S. and African Companies Call for Immediate Renewal of AGOA

USA-ITA joins with several other industry groups, including the ACTIF (African Cotton and Textile Industries Federation), in asking U.S. Congress to take action as soon as possible to renew the African Growth and Opportunity Act (AGOA). AGOA is scheduled to expire on September 30, 2015. In 2012, Congress waited to renew AGOA until the last minute, creating uncertainty that forced some companies to cut back on orders. The coalition hopes that this time the Congress will act early and extend the duty-free benefits for a longer time. The groups ask for the following:

1.       Immediate Renewal of AGOA.
2.       Long-term Renewal of AGOA, at least fifteen years.
3.       Extend Third Country Fabric benefits for the same length of time as full AGOA extension.
4.       Grant Third Country Fabric Benefits to All AGOA beneficiaries

To read the full statement, click here.

University of Delaware: For the Record, July 17, 2026

On a 17 July deadline, the University of Delaware highlights from USFIA's 2026 Benchmarking Study:

UDaily Staff | July 17, 2026

Sheng Lu, professor and graduate director of Fashion and apparel studies (FASH), and Emilie Delaye, FASH graduate instructor, presented at the United States Fashion Industry Association (USFIA) Washington Trade Symposium on July 15, 2026, and at the USFIA Board of Directors meeting on July 16, 2026, in Washington, D.C. During the presentations, Lu and Delaye shared their coauthored study with USFIA on U.S. fashion companies’ evolving sourcing and supply chain strategies in response to tariffs and other macroeconomic and regulatory factors.

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USA-ITA Attends AGOA Breakfast on Capitol Hill

On August 1, 2013, USA-ITA (now the United States Fashion Industry Association) attended a breakfast on Capitol Hill hosted by House Africa Subcommittee Ranking Member Karen Bass (D-CA). The breakfast featured discussions on President Obama’s recent trip to Africa and what to expect from the upcoming AGOA forum, as well as the AGOA Ambassadors’ report. Of particular note, U.S. Trade Representative for Africa Florie Liser, who has spoken at USA-ITA events in the past, welcomed the views of all AGOA stakeholders and discussed the importance of apparel and footwear in particular. She said the Administration recognizes the need for seamless renewal, adding that she has heard from buyers that the industry needs expedited renewal and certainty in order to continue sourcing from the AGOA region. Additional speakers included Grant T. Harris, Special Assistant to the President & Senior Director for African Affairs at the White House; Stephanie Peters, Director of Federal Government Affairs for Microsoft; and the Ambassadors of Nigeria and Mauritius. All speakers, as well as attending Members of Congress including Charlie Rangel (D-NY), Gregory Meeks (D-NY), and Sheila Jackson Lee (D-TX), stressed the importance of quick renewal of AGOA and continued support of our trading partners in Africa.

USFIA Calls for Immediate Renewal of AGOA

On July 31, 2014, the United States Fashion Industry Association (USFIA) posted a statement calling for the immediate, long-term renewal of the African Growth & Opportunity Act (AGOA), as well as long-term renewal of the third-country fabric provision and extension of the third-country fabric provision to all AGOA beneficiaries. The statement is available here.

USFIA Contributes to USITC Report on AGOA

The United States International Trade Commission (USITC) has released a report titled, “AGOA: Trade and Investment Performance Overview.” The report describes, reviews, and analyzes the trade and investment performance of African Growth & Opportunity Act (AGOA) beneficiary countries from 2000 to 2013. Of particular note, “The report’s findings suggest that AGOA’s impact on foreign direct investment (FDI) has been strongest in the apparel industry. Overall, the program’s trade benefits and eligibility criteria appear to have motivated AGOA beneficiary countries to improve their business and investment climates. AGOA has had a positive impact on FDI inflows, particularly in the textile and apparel sector in Kenya, Lesotho, Mauritius, Swaziland, and Botswana, and also in South Africa’s automotive industry. Some studies, however, suggest that reciprocal trade agreements may have certain advantages over unilateral trade preference programs such as AGOA.”

USFIA contributed information to the report (page 322):

In a written submission, Julia Hughes, President, United States Fashion Industry Association

(USFIA), said that USFIA represents textile and apparel brands, retailers, importers, and wholesalers based in the United States. She indicated that she would concentrate on two of the investigations, Nos. 332-542, AGOA: Trade and Investment Performance Review, and 332-545, U.S. AGOA Rules of Origin: Possible Changes to Promote Regional Integration and Promote Exports to the United States. USFIA member companies, according to Ms. Hughes, continue to source from textile and apparel producers in SSA. Ms. Hughes noted that these companies want to maintain partnerships on the African continent and she made the following recommendations: (1) AGOA should be renewed on a seamless basis as soon as possible and no later than 2014; (2) AGOA should be reauthorized for a 15-year period; (3) the third-country fabric provision should be renewed for the full duration of the AGOA renewal; (4) all AGOA beneficiary countries should benefit from AGOA’s third-country fabric provision; and (5) trade capacity building programs should be expanded.

USFIA Files Comments on AGOA Eligibility Review

On September 2, 2016, the United States Fashion Industry Association (USFIA) and other apparel and retail associations filed comments on the African Growth and Opportunity Act (AGOA) eligibility review. We said that we support the renewal of AGOA benefits for all countries that are currently eligible for benefits. Our statement is available here.

USFIA Files Comments to USITC on AGOA

On January 21, 2014, the United States Fashion Industry Association (USFIA) filed comments with the U.S. International Trade Commission (USITC) for their investigation on trade and investment performance as well as possible changes to the African Growth & Opportunity Act (AGOA). In our comments, drafted with assistance from USFIA Washington Counsel David Spooner with Squire Sanders, we recommend prompt and long-term renewal; long-term renewal and expansion of the Third-Country Fabric provision; and expanded trade capacity-building programs.

USFIA Joins Letter to USTR on AGOA

On March 25^th, 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 Letter Urging House to Support Trade Preferences Legislation

On June 3, 2015, the United States Fashion Industry Association (USFIA) joined a coalition letter urging the House to pass the Trade Preferences Extension Act of 2015. This legislation was approved by the Senate 97 to 1 in May. The legislation includes a 10-year extension of the African Growth & Opportunity Act (AGOA), retroactive renewal of the Generalized System of Preferences (GSP), extension through 2025 of the Haiti trade preferences program, and HTS breakouts for certain performance outerwear and athletic footwear. The letter is available here.

USFIA Joins Letter Urging House to Support Trade Preferences Legislation

On June 3, 2015, the United States Fashion Industry Association (USFIA) joined a coalition letter urging the House to pass the Trade Preferences Extension Act of 2015. This legislation was approved by the Senate 97 to 1 in May. The legislation includes a 10-year extension of the African Growth & Opportunity Act (AGOA), retroactive renewal of the Generalized System of Preferences (GSP), extension through 2025 of the Haiti trade preferences program, and HTS breakouts for certain performance outerwear and athletic footwear. The letter is available here.

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

On August 13^th, 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.