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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

Tariffs

  • ABC News: Tariff impact on fashion industry

    On a 21 March deadline, ABC News interview USFIA President, Julie Hughes, on tariff's impact.

    March 21, 2026

    President of the United States Fashion Industry Association Julia Hughes describes the impact of the Supreme Court's recent upending of tariffs, as well as the impending refunds due by the government.

     

    View the video here.

  • Analysis of Global Apparel Import Tariff Rates

    President Trump promises he will announce reciprocal tariffs on April 2nd. In advance, we share this recent analysis from Dr. Sheng Lu, Professor in the University of Delaware’s Department of Fashion and Apparel Studies:

    Apparel Import Tariff Rates around the World (Updated March 2025)

    Apparel products are often subject to high tariffs for various reasons. In developed countries such as the United States, apparel has long been considered an “import-sensitive” sector, with relatively high tariff rates imposed primarily to “protect” specific domestic interest groups with political influences.

    Sheng 3.28.25 1

    Sheng 3.28.25 2

    However, as importers, not exporters, pay the tariffs, heavy import duties have been a significant concern for US fashion companies for decades. According to data from the US International Trade Commission (USITC), in 2024, apparel (HS chapters 61 and 62) accounted for about 2.5 percent of total US imports but contributed approximately 15.6 percent of total tariff duties. Likewise, US fashion companies paid $11.9 billion in tariffs on apparel imports in 2024, an increase from $11.6 billion in 2023. The average applied tariff rate for apparel items reached 14.6% in 2024, a notable increase from 13.7% before the imposition of Section 301 tariffs on Chinese products. Additionally, due to retail markups, every $1 in tariffs could result in a $1.50 to $2 increase in the final retail price.

    Sheng 3.28.25 3

    Meanwhile, developing countries, especially those least developed, also often impose high tariffs on apparel—either to protect their nascent domestic industries from import competition or to generate government revenues. For example, in Africa, the apparel import tariff rate commonly exceeds 35% as of 2023 (the latest data available).

    Sheng 3.28.25 4

    In February 2025, President Trump announced the imposition of a so-called “reciprocal tariff,” aiming to  “match” the tariff rates that other countries impose on US exports, thereby promoting “fairer trade practices.” However, the details of the “reciprocal tariff” idea remain highly uncertain.

    In theory, if strict “tariff matching” is required on a product-by-product basis, US apparel imports from most leading sourcing destinations—particularly those in Asia without a free trade agreement with the US–would face a significant increase in tariffs. Similarly, beneficiary countries under the African Growth and Opportunity Act (AGOA) could face a similar issue, as AGOA is a trade preference program that does not provide duty-free market access for US products in Africa. If apparel exports from AGOA-member countries to the US were subjected to the same 35%+ tariff rates that US products currently face in their markets, it would be a devastating scenario.

  • Associations and CEOs Urge President Trump to Reconsider 301 Tariffs on China

    President Trump received two letters—including one signed by the United States Fashion Industry Association (USFIA)—expressing concerns about potential tariffs under Section 301 of the Trade Act of 1974. The Administration is investigating China’s intellectual property and technology policies and considering broad tariff remedies on imports from China. One letter, available here, was signed by more than two dozen fashion and retail CEOs, including USFIA members American Eagle Outfitters, JCPenney, Kohl’s, Levi Strauss & Co., and Macy’s, among others. The other letter, available here, was signed by more than 40 trade associations across fashion, retail, tech, autos, and food and beverages. The Wall Street Journal has more on the trade association letter.

  • Bangkok Post: Can ethical supply chains survive tariffs?

    On a 10 October deadline, Bangkok Post reports on the fragility of global supply chains under tariffs:

    Joleen Ong | October 10, 2025

    The following is an excerpt....

    The fashion industry is one of many that is feeling the weight of tariffs -- disruptions that come at a time when it is struggling to make progress toward previously stated climate and sustainability goals. According to a 2025 benchmarking survey by the US Fashion Industry Association, 100% of 25 leading apparel brands and retailers identified the current administration's protectionist stance and volatile trade relationships as a top challenge, and more than half flagged policy uncertainty, especially retaliatory tariffs, as their primary concern.

    Rather than responding with short-term cost-cutting, though, major consumer-goods companies are making strategic investments to build resilience. For example, retailers like Walmart and Target have front-loaded inventory to absorb tariff shocks ahead of the holiday season, and Apple chartered cargo flights to transport 1.5 million iPhones from India, an option made possible by increasing production with a key supplier.

     

    Read the full article here. 

  • Behind the Seams: Lower Tariffs Could Make Quite a Difference for the High-End Fashion Industry and for Brand-Conscious Fashionistas

    "Only 3% of garment imports come from Europe", says Julia Hughes from the U.S. Association of Importers of Textiles and Apparel who also admits to go on shoe buying sprees during trips to the other side of the Atlantic. But the volume is big enough – and both sides would benefit from a more unified transatlantic market.

    Click here to read the entire article on the Behind the Seams website.

  • Bloomberg: ‘Made in Cambodia’ May Become New Fashion Label With Tariffs Hitting China

    By Uliana Pavlova

    The next designer handbag you buy is less likely to bear a “made in China” label.

    Fashion companies, eager to diversify their supply chains, were already expanding into production sites in Southeast Asia as alternatives to China. Then the trade war happened...

    A study released in July by the U.S. Fashion Industry Association showed that, while all of the companies participating in the survey sourced goods from China, 67 percent expected to decrease the value or volume of production in the country over the next two years. U.S. trade protectionism was listed as the number one challenge for the industry.

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

  • California Apparel News: European Retaliation Tariffs Planned on U.S. Clothing

    By Deborah Belgum

    Several apparel trade organizations were livid about the steel and aluminum tariffs, which Trump has been threatening for some time and that followed recently imposed tariffs on solar panels and washing machines.

    “We know these tariffs will be catastrophic for the U.S. economy and jobs,” wrote the U.S. Fashion Industry Association in Washington, D.C. “While our members don’t import a lot of steel or aluminum, these tariffs could result in disastrous consequences for them. Already, the European Union is calling out a variety of industries, including iconic American denim and T-shirts, as potential targets for tariff increases of their own.”

    The trade association noted that imports support high-quality jobs for Americans, help U.S. businesses to grow and encourage American companies to do good in other parts of the world.

    Click here to read the entire article on the California Apparel News website.

  • California Apparel News: New Tariffs on Chinese Goods Have Apparel Manufacturers Worried

    By Deborah Belgum

    Taking a more sanguine approach on impending tariffs is Julie Hughes, president of the U.S. Fashion Industry Association, a Washington, D.C., group representing apparel and fashion-goods importers. She doesn’t believe new tariffs are necessarily a done deal. “I don’t think they are going to do anything until the two leaders [of China and the United States] meet. The Chinese are pretty smart,” she said. “I suspect they have a strategy.”

    Click here to read the entire article on the California Apparel News website.

  • Cantwell and Grassley Introduce Trade Review Act of 2025

    Senators Maria Cantwell (D-WA) and Chuck Grassley (R-IA), both members of the Senate Finance Committee, introduced legislation yesterday to “reaffirm Congress’ key role in setting and approving U.S. trade policy.” The Trade Review Act of 2025 would “reestablish limits on the president’s ability to impose unilateral tariffs without the approval of Congress.” According to the press releases from Cantwell and Grassley’s offices:

    The bill restores Congress’ authority and responsibility over tariffs as outlined in Article I, Section 8 of the Constitution by placing the following limits on the president’s power to impose tariffs:

    • To enact a new tariff, the president must notify Congress of the imposition of (or increase in) the tariff within 48 hours.
      • The Congressional notification must include an explanation of the president’s reasoning for imposing or raising the tariff, and
      • Provide analysis of potential impact on American businesses and consumers.
    • Within 60 days, Congress must pass a joint resolution of approval on the new tariff, otherwise all new tariffs on imports expire after that deadline.
    • Under the bill, Congress has the ability to end tariffs at any time by passing a resolution of disapproval.
    • Anti-dumping and countervailing duties are excluded.

    Cantwell also released a statement on April 2 condemning the increased costs from Trump’s reciprocal tariff announcement and the “economic chaos” caused by his “unpredictable and ever-changing tariff announcements.” 

  • China Cuts Tariffs on 800 Imported Products

    The Customs Tariff Commission of the State Council released the 2016 Interim Duty Rates List on 4 December 2015, covering a tariff reduction on 787 tariff codes, including certain apparel, footwear, leather goods and sunglasses. The new rates will be effective from 1 January 2016. 

    This is in line with the country's policy to relax tariff barriers and intention to boost domestic consumption on consumer and luxury goods. 

    The Interim Duty Rate is a temporary reduction on import duties which lasts for 1-2 years or sometimes longer, depending on market and economic circumstances. 

    There has also been discussions around potential consumption tax adjustments, which has been in talks by the Chinese Government since the 12th 5-year plan. The direction is to impose or increase consumption taxes on products such as those that are environmentally unfriendly, while relaxing consumption taxes on goods that were once considered as "luxurious" but have now become a common commodity. So far there has not been substantial implementation details released in this regard. 

    Having said the above, given the direction of the China Government's policy development, there is possibility that the Government together with China Customs may consider further adjusting tariffs on consumer and luxury products (those that are currently not included in the list).  Based on the usual Interim Duty Rates regime, businesses or lobbying associations may pro-actively lodge Interim Duty Rate applications if they would like a specific tariff code to be reviewed and considered. Customs would often give priority to those products that have the right political, economical and commercial support.

    For more information, contact Queena Lau, Manager in PwC's Worldwide Management Services in Shanghai, at +86 (21) 2323 1156 or This email address is being protected from spambots. You need JavaScript enabled to view it.. 

  • China Economic Review: Fashion labels shift production from China to Cambodia to avoid US tariffs

    Global fashion companies are accelerating plans to diversify their manufacturing operations away from China to Southeast Asian countries including Vietnam and Cambodia due to the threat of US tariffs on Chinese imports, Bloombergreports.

    Nearly 70% of fashion industry executives say they plan to reduce the percentage of their products sourced from China over the next two years and name US trade protectionism as the largest challenge facing the industry, according to a recent study by the US Fashion Industry Association.

    Click here to read the entire article on the China Economic Review website.

  • China’s Plunging Denim Exports to the US Show Tariffs’ Taxing Toll

    By Arthur Friedman 

    The tariffs on U.S. apparel imports from China keep taking a bigger toll on the country’s role as a denim supplier, while other countries such as Vietnam, Egypt and Nicaragua gain ground.

    China’s declines were most dramatic in September and October, as 15 percent tariffs were imposed on Sept. 1 and many companies took action to get goods in under the wire in July and August, said Julia Hughes, president of the U.S. Fashion Industry Association.

    Click here to read the full article. 

  • Coalition Highlights High Tariffs on Valentine’s Day

    The We Pay the Tariffs coalition is highlighting the high price of President Trump’s tariffs ahead of Valentine’s Day tomorrow, writing that popular gifts for the holiday faced over $3 billion in extra tariffs in just nine months. These gifts, including jewelry, perfumes and cosmetic products, wine, candy & chocolate, flowers, candles, and greeting cards faced a total of $3.1 billion in extra tariffs between March and November 2025. The coalition writes, “Faced with high tariffs, small business owners importing America’s favorite Valentine’s Day gifts are caught between impossible choices: absorb costs they cannot afford, raise prices and lose customers, or close permanently.”

    valentines day tariffs 2026

  • CSIS: Tariffs Using Emergency Economic Powers Risk Undermining U.S. Economic Security

    On Monday, the Center for Strategic and International Studies published an analysis of Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on China, Canada, and Mexico. Navin Girishankar, President of the Economic and Security Technology Department, and Philip Luck, Director of the Economics Program and Scholl Chair in International Business, discuss how the tariffs against Mexico and Canada “in particular risk undermining U.S. economic security by their direct economic repercussions” and their “inadequacy in motivating policy change by our partners, and their likelihood of degrading partnerships essential to countering global threats, in particular from China.”

    The authors also ponder the endgame of this strategy:

    The more interesting question is what the administration seeks in exchange for removing tariff threats: point-in-time reductions in the merchandise trade deficit, relatively narrow noneconomic ends such as fentanyl interdiction, or cooperation on the innovation and commercialization of critical and advanced technologies. If it is the third, then the modus operandi will likely need to change. The United States does not have an absolute advantage across sectors and technologies that will drive growth and security. It needs its long-standing partners, particularly its neighbors.

  • Drapers: China tariffs to ‘create chaos’ in US fashion supply chain

    By Tara Hounsela

    Starting next week, President Trump’s administration in the US is imposing $200bn (£152bn) more tariffs on Chinese goods, including several fashion and consumer products – a decision that has been strongly opposed by the United States Fashion Industry Association (USFIA).

    The organisation said the tariffs would add considerable disruption to the supply chain, and would amount to a tax on consumers.

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

  • Fibre2Fashion: Study analyses impact of new US tariffs on textile-apparel

    China is the United States’ largest trading partner in the apparel and textiles category. 

    China accounted for 11-30 per cent of all apparel and footwear goods imported to the United States in 2018, down from 30-50 per cent earlier, according to a survey conducted by the United States Fashion Industry Association (USFIA). 

    Click here to read the entire article on the Fibre2Fashion website.

  • Fibre2Fashion: Tariffs to drive major shift in US fashion sourcing: Report

    On a 5 August deadline, Fibre2Fashion reports on the USFIA's 2025 Benchmarking Study.

    August 5, 2025

    The following is an excerpt....

    Lu, professor and graduate director in the department of Fashion and Apparel Studies, has partnered with the United States Fashion Industry Association (USFIA), on an annual survey of executives at the top 25 US fashion brands, retailers, importers and wholesalers doing business globally. Members include well-known names like Levi’s, Macy’s, Ralph Lauren and Under Armour, among others.

    The report covers business challenges and outlook, sourcing practices and views on trade policy. It shows tariffs and protectionist policies are the top business challenge for companies, with nearly half reporting declining sales and more than 20 per cent saying they have had to lay off employees. This was followed closely by uncertainty around inflation and the economy, increasing sourcing and production costs, and changes in trade policies from other countries.

     

    Read the full article here. 

  • Fibre2Fashion: Trump announces tariffs on $200 bn worth Chinese imports

    Meanwhile, the United States Fashion Industry Association (USFIA) strongly opposed President Trump’s action. 

    “In addition to amounting to a tax on consumers, these tariffs will add considerable disruption to the supply chain; the fact that the tariffs will start at 10 percent now and will rise to 25 percent on January 1st creates additional chaos in the fashion industry’s supply chains, which will have a wide-ranging negative impact on consumers, companies, and jobs in the United States, the association said in a statement.

    Click here to read the entire article on the Fibre2Fashion website.

  • Fibre2Fashion: US Year End Review 2025: Caught In Its Own Web

    On a 31 December deadline, Fibre2Fashion reports on tariffs' effect in 2025.

    December 31, 2025

    The following is an excerpt....

    A US Fashion Industry Association study found that tariff policies could not inspire US fashion companies to up domestic sourcing. Seventy per cent of companies surveyed delayed or cancelled sourcing orders due to tariff hikes. Adjusting procurement networks emerged as the most commonly adopted tariff mitigation strategy, with more than 80 per cent of companies diversifying their production footprint to other countries and regions. Around 44 per cent companies desired to expand sourcing from the Western Hemisphere, while 17 per cent planned to source more ‘Made in the USA’ apparel and textiles.

    In reality, higher tariffs directly disadvantaged US-based production. The US garment manufacturing companies depend on yarns, fabrics, and zippers from other countries. Because of tariffs driving up the cost of these raw materials, domestically produced apparel will lack price competitiveness. US fashion brands shifting production to the Western Hemisphere is not a practical alternative either as Asia continues to be a relatively dominant apparel sourcing base for them. Compared to key Asian suppliers, US domestic suppliers lag in product diversity, agility, flexibility, and vertical integration—the vital factors for US fashion companies. Add to that, the current state of US textile production remains a major barrier to domestic sourcing. Between January and July, US production of textiles such as fibres, yarns and fabrics, decreased by 6.2 per cent, while US apparel production fell by 4.3 per cent. The shrinking pool of overall sourcing also hinders orders for US-based producers, which account for less than 10 per cent of a typical fashion company’s sourcing footprint. Challenges also exist for US fashion brands attempting to source ‘sustainably’ from domestic suppliers. Although most companies are likely to source clothing made with sustainable textiles in the US, including recycled, organic or regenerative materials, new infrastructure investments are needed urgently to up production capacity.

    Read the full article here. 

  • Fibre2Fashion: USFIA & FDRA urge tariff reconsideration, citing rising costs

    March 6, 2025

    INSIGHTS

    • Industry leaders caution that new tariffs on Mexico, Canada, and China could disrupt supply chains and strain businesses and consumers.
    • The apparel and footwear sectors, already facing high tariffs, fear further inflation.
    • FDRA reports a 26.2 per cent drop in footwear sales, linking it to inflation concerns.
    • Business leaders urge the administration to reconsider its tariff strategy.

    Industry leaders are expressing concern over the Trump Administration’s decision to introduce additional tariffs on key trading partners, cautioning that the move could disrupt supply chains, contribute to inflation, and impact American businesses....

    Industry representatives argue that the new tariffs fail to account for the deeply interconnected trade networks that have evolved over the past three decades under regional free trade agreements.

    The Western Hemisphere’s apparel supply chain relies heavily on cross-border collaboration, and these new measures could disrupt a well-established system, impacting businesses and consumers alike. The ‘Made in’ label reveals only part of a garment's journey. A simple cotton T-shirt undergoes a complex process—from design and manufacturing to logistics and distribution, United States Fashion Industry Association (USFIA) said in a statement.

    The US textile sector is particularly intertwined with Mexico, which sources about 60 per cent of its textile production needs from American cotton, according to the USDA’s Foreign Agricultural Service. Official trade data further underscores these ties, with US apparel imports from USMCA partners Mexico and Canada reaching $3.1 billion in 2024, accounting for 3 per cent of total imports.

     Read more on Fibre2Fashion

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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
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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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Increase in prices for apparel in the short run due to new tariffs

Higher tariffs on apparel translate into real increased expenses for American consumers.

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Total number of new and modified tariff actions this year

Tariff actions taken so far in 2025 impact every single country; including those with no trade to the U.S. and trusted trading partners.

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Estimated tariff increase on apparel imports

From research by Dr. Sheng Lu. If the value of US textile and apparel imports in 2025 remains unchanged from 2024, the reciprocal tariff would result in nearly $35 billion in total tariff duties on these products—an increase of $19.9 billion compared to the current tariff levels.

Events

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Tariff Refund Class Actions: Essential Insights for Importers and Retailers

Tariff Refund Class Actions: Essential Insights for Importers and Retailers

Virtual
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April 14, 2026
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Reports

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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