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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

Sourcing

  • USFIA Meets with CNTAC in New York City

    USFIA Chairman Michael Singer of Macy’s and USFIA President Julia Hughes participated in the opening ceremony for the China Textile and Apparel Trade Show at the Javits Center in New York City. They met with CNTAC Vice President Xu Ying Xin to discuss the impact of the current trade uncertainty on sourcing partnerships between the United States and China. They also toured the TexWorld show floor and attended a fashion show sponsored by the Shenzhen Underwear Association. Click here to read more about it.

  • USFIA Meets with Indonesian Trade Minister

    United States Fashion Industry Association (USFIA) President Julia Hughes met with the Indonesian Trade Minister and a delegation of textile and apparel companies visiting Washington, D.C. The delegation was visiting to discuss enhanced trade opportunities with the United States, especially with expanded sales of U.S. cotton to the Indonesian industry. The Indonesian government officials were also meeting with Trump Administration officials to make the case for Indonesia keeping its Generalized System of Preferences (GSP) status.

  • 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.

  • Vogue Business: North American Trade Pact Review Unsettles Fashion Sourcing Plans

    On a 20 July deadline, Vogue Business reports on recent trade agreement reviews' impact on sourcing plans:

    Jessica Binns | July 20, 2026

    The following is an excerpt....

     

    Just under a third (31.6%) of the 30 leading US fashion companies reported sourcing apparel from Mexico this year, down from 52.9% in 2025 and 60.7% in 2024, according to a survey conducted by Sheng Lu, director of fashion and apparel studies at the University of Delaware, and Emilie Delaye, a graduate instructor in the department, in collaboration with the United States Fashion Industry Association (USFIA). Only 33% planned to increase apparel sourcing from Mexico over the next two years, down from 47% in 2025’s survey. The decline does not reflect a loss of Mexico’s sourcing advantages. Respondents still ranked it as the most competitive major sourcing destination for speed to market; 72% cited speed as a critical reason to source there, followed by duty savings at 63%. Companies also viewed Mexico as more flexible and lower risk on social and environmental compliance than many Asian suppliers.

    The harder question is whether the policy environment is stable enough for brands to deepen their commitments. “These results underscore the importance of creating a stable and predictable policy environment,” Lu says.

    ...

    Importers are watching the review process closely. USFIA president Julia Hughes says there is broad support for USMCA among fashion and retail companies in all three countries, and that the industry has urged negotiators to preserve the agreement’s textile and apparel framework. “The industry supports no change in the rules of origin for our sector, and we believe the negotiators support that position,” Hughes says.

    All respondents to the University of Delaware and USFIA survey supported keeping USMCA trilateral, because the apparel and textile value chain depends on a single regional framework for rules of origin, documentation, and duty-free treatment. Separate bilateral deals could fragment those rules, raise compliance costs, and make North American less attractive as a sourcing alternative. If the Trump administration revisits USMCA rules of origin, Lu says, the extent to which more flexibility is introduced into the current yarn-forward framework is likely to be one of the most contentious and politically sensitive issues in the debate. 

     

    Read the full article here.

  • Vogue Business: What to Know About the New US Tariffs

    On a 3 August deadline, Vogue Business reports on the effects of tariffs on Western Hemisphere sourcing:

    Jessica Binns | August 3, 2026

    The following is an excerpt....

    Julie Hughes, president of the United States Fashion Industry Association (USFIA), says most companies anticipated that the administration would use forced labor-related Section 301 tariffs to maintain 10% or 12.5% duties, after the temporary Section 122.

    ...

    This is reshaping sourcing strategies, too. In USFIA’s 2026 Fashion Industry Benchmarking Study, released last month and led by University of Delaware professor Sheng Lu with Emilie Delaye, protectionist US trade policies and tariff uncertainty ranked as companies’ top business challenges. About 62% of respondents expressed optimism about the industry’s next five years, the lowest level recorded since the study began tracking that measure, Lu says.

    That dynamic is also making China harder to replace than the politics of pro-China decoupling might suggest. For most China-origin goods, the all-in tariff burden can now run from the high 20s into the 40%-plus range, once ordinary duties, legacy China tariffs and the new forced labor levy are combined. Lu says China’s sourcing cost competitiveness improved in this year’s survey, while it continued to lead on flexibility, agility, minimum order quantities and vertical integration. More than 70% ofrespondents sourced fabrics and textile accessories such as buttons, zippers, trims and labels from China, while 65% sourced yarns and threads there. The share of respondents planning to reduce China sourcing fell from more than 80% in 2024 and 2025 to 40% this year; about 20% planned to increase sourcing from China, up from 6% in 2025.

    ...

    The USMCA still appears to offer some protection. Hughes says USMCA-qualifyingproducts are exempt from the forced labor Section 301 tariffs, and textile and apparel provisions do not currently appear to be under negotiation. That protection does not resolve the separate Canada-specific Section 338 threat, but it does suggest USMCA treatment still matters in parts of the tariff regime. But that doesn’t mean the region is in the clear. “I don’t know that we can call any place ‘safe’,” she says. USFIA is working with the AAFA and the National Council of Textile Organizations on a Western Hemisphere Initiative that would support US textiles, CAFTA-DR and USMCA apparel production and tariff relief for brands and retailers. “It’s not a panacea,” Hughes adds, “but that is a start.”

    The Forced Labor Question

    The forced labor rationale has raised another concern: whether tariffs are the right enforcement tool. Lu says tariffs do not help companies manage forced labor risk; instead, they can reduce resources available for sustainability and compliance. In the USFIA survey, 53% of respondents said higher tariff burdens forced them to reduce financial resources for critical areas such as sustainability.

    Read the full article here.

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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
Attend Our Events

 

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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