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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

Tariffs

  • Vogue Business: Where tariffs stand now

    On 1 August deadline, Vogue Business breaks down tariffs by country and what the rates mean for fashion.

    By Madeleine Schulz | August 1, 2025

    The following is an excerpt....

    Now in effect, tariffs remain a key concern for fashion businesses in 2025. All respondents in the US Fashion Industry Association’s 2025 Fashion Industry Benchmarking study said that one of their top business concerns is US trade policy and uncertainty around the impact of President Trump’s tariffs. More than 70 per cent of survey respondents said that the higher tariffs increased sourcing costs, squeezed profit margins and led to higher consumer prices already — and almost half report declining sales and 22 per cent have already laid off employees due to the increased tariffs.

    Even so, almost two-thirds of respondents are optimistic about the five-year outlook for the fashion industry. It’s lower than last year, but a sign that a majority of sourcing executives are confident in the industry’s ability to weather the tariff uncertainty.

    Read more on Vogue Business

  • Washington Examiner: Business Groups Object to Trump Plans to Retail Tariffs in China Trade Deal

    By Sean Higgins

    "As we inch closer to a final deal, a key part must be the full and immediate removal of all added tariffs when the deal is signed. Anything that falls short of that goal would be a loss for the American people," said the ad-hoc coalition group Americans for Free Trade in a letter to President Trump Monday. The White House has imposed tariffs of 10%-25% on $250 billion worth of Chinese goods.

  • WIIT Communique: The WTO Created a Win for Consumers and Manufacturers- Lessons from the Textile Industry

    On a June deadline, WIIT featured an essay from Julie Hughes, President of USFIA on outlook on tariffs.

    Julie Hughes | June 2025

    The following is an excerpt....

    Looking back, the WTO agreement is a win-win-win. It’s a win with lower prices and more sourcing options for American families and consumers. It’s a win for the many countries, like Bangladesh or Vietnam or Guatemala, where the textile and apparel sector creates jobs, especially for women who were new to the workforce. It’s even a win for the opponents like the U.S. textile industry. Instead of competition destroying them, the U.S. capital-intensive textile industry is one of the world’s top textile exporters, ranking 5th in the latest WTO global trade statistics. [Yes, China is number one and the EU is number two.]

    What is the future for textile and apparel trade? While the quotas are a distant memory, tariffs are the next frontier. U.S. MFN tariffs on apparel average 16% and can be as high as 32%. In the past 30 years the only way to reduce tariffs is to negotiate a Free Trade Agreement or be eligible for a trade preference program. This is an example of what multilateral trade negotiations could accomplish. And a great way to support Fashion Made Possible by Global Trade.

     

    Read the full article here. 

  • Will Trump's Tariffs Affect Luxury Fashion?

    By Sadie Bargeron

    In 2018, the Fashion Benchmarking Study of 2018 reported that China accounted for 11-30% of companies’ total sourcing value in the US, in comparison to a previous 30-50%. In short, these tariffs are causing fast-fashion brands to diversify their supply chains.

    Click here to read the full article on ORDRE’s website.

  • World Footwear: US imposes 25% tariffs on Brazilian goods, raising concerns in the footwear industry

    On a 20 July deadline, World Footwear reports on the recent 25% tariffs on Brazililian goods. 

    World Footwear | July 20, 2026

    The following is an excerpt...

     

    Those who spoke out against the tariff on Brazilian footwear included representatives from the Footwear Distributors and Retailers of America (FDRA), the American Apparel & Footwear Association (AAFA) and the United States Fashion Industry Association (USFIA), as well as US importers and retailers such as JPT Group LLC, Bernardo Footwear and Dillard’s Inc.

     

    Read the full article here

  • WWD: Bangladesh Urged to Drop Tariffs on Safety Equipment

    By Arthur Friedman

    Six major trade associations in the U.S. and Canada are urging the Bangladesh government to eliminate import duties on safety equipment, which would vastly bring down the costs related to remediation in garment factories and improve factory safety.

    Executives with the American Apparel & Footwear Association, National Retail Federation, Retail Industry Leaders Association, U.S. Fashion Industry Association, Canadian Apparel Federation and Retail Council of Canada wrote to Prime Minister Sheikh Hasina Wazed and said, “The elimination of these duties would greatly accelerate the current efforts to improve worker safety in Bangladesh.”

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

  • WWD: Retail, Fashion Industries Worried by New Trump Tariffs

    By Kali Hays

    For now, Canada and Mexico, the other countries involved in NAFTA, are exempt from the steel and aluminum tariffs.

    But the macro effects of the tariffs are also a concern and a spokeswoman for the U.S. Fashion Industry Association said, “We know these tariffs will be catastrophic for the U.S. economy and jobs.”

    “We’re not being partisan or subjective, it’s trade policy 101, and we can expect widespread net job loss in the U.S. as a result, according to early studies, not to mention regressive taxes on American consumers,” the spokeswoman said. “While our members don’t import a lot of steel and aluminum, these tariffs could result in disastrous consequences for them.”

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

  • Xinhua: U.S. tariffs to disrupt fashion industry, says U.S. fashion industry association chief

    U.S. tariffs on imports from China will disrupt the global supply chain in the fashion industry and damage the entire sector, the head of a U.S. fashion industry association said.

    "From feathers to textiles to furniture, we see disruption and uncertainty in the industry," Julie Hughes, president of the United States Fashion Industry Association (USFIA), told Xinhua during a recent interview. "In most cases, there are no alternative sources of supply for U.S. companies."

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

  • Yahoo Finance: US textile and apparel bodies urge adoption of new incentive programme

    On a 7 July deadline, Yahoo Finance reports on the recent joint proposal from USFIA for a tariff credit program:

    Jangoulun Singsit | July 7, 2026

    The following is an excerpt....

     

    The joint proposal was submitted to the Office of the United States Trade Representative (USTR) by the National Council of Textile Organizations (NCTO), the American Apparel & Footwear Association (AAFA), the United States Fashion Industry Association (USFIA), and the US Industrial and Narrow Fabrics Institute (USINFI).

    This collaboration marks the first instance in which these groups, traditionally known for holding divergent trade policy views, have united in support of a single trade initiative.

    In the submission, the organisations emphasised objectives such as encouraging domestic manufacturing, strengthening Western Hemisphere textile and apparel supply chains, and assisting brands and retailers to diversify sourcing strategies at what they described as a critical juncture.

    The incentive programme, according to the joint statement, would allow brands and retailers to earn tariff credits when purchasing US textiles and approved apparel goods from US free trade agreement partners in the Western Hemisphere.

    These credits could then be used to offset potential Section 301 tariffs imposed on imports from eligible countries.

    The industry groups argue that the adoption of their programme would deliver "the revitalisation and growth of US textile manufacturing, exports, and investment, resulting in over 56,000 new jobs" domestically.

    Furthermore, increased exports are projected to "drive billions of dollars of new domestic investment" and provide benefits throughout the wider supply chain, including the cotton farming sector.

    Their proposal was formally presented as a response to a mechanism advanced by USTR as part of the ongoing Section 301 investigations into forced labour practices in global supply chains.

    The submission stated that the new approach had been jointly devised as a way to address priorities shared by manufacturers and buyers across the US market.

    "Our joint efforts have resulted in the development of a novel trade incentive programme that would achieve various important goals," the organisations noted, referencing new job creation and sector growth as key expected outcomes.

    They added: "We believe with the right incentives we can grow jobs substantially in the United States, reopen shuttered factories, and make the critical investments needed to maintain and to grow America's textile industry by also helping brands and retailers find new opportunities. As such, we respectfully request the United States Trade Representative to consider including our proposed incentive program as a component of any remedy that results from the Section 301 investigations currently underway."

    "US textile and apparel bodies urge adoption of new incentive programme" was originally created and published by Just Style, a GlobalData owned brand.

     

    Read the full article here

  • Yahoo Shopping: Shoppers flock to thrift stores to combat rising prices

    On a 18 June deadline, the Florida Times-Union reports on the recent push for second-hand shopping by financially-strained consumers:

    Amelia Espinales | June 18, 2026

    The following is an excerpt....

     

    According to a 2025 resale report from Thredup, an online thrift shop, the global secondhand apparel market is expected to hit $367 billion by 2029 and is growing 2.7 times faster than the overall global apparel market. According to the report, government policies around tariffs and trade are expected to provide a healthy tailwind to secondhand apparel with 62% of consumers saying they are concerned that new government policies around tariffs and trade will make apparel more expensive and 59% of consumers said if new government policies surrounding tariffs and trade make apparel more expensive, they will seek more affordable options, such as secondhand goods.

    With the recent surges of prices due to rising tariffs and inflation, communities are turning to the secondhand clothing market. According to a 2025 study report from the United States Fashion Industry Association (USFIA), more than 98% of clothing sold in the United States is imported, making the fashion industry specifically more vulnerable to tariff increases.

    As the cost of a new wardrobe rises, some shoppers are turning to resellers and thrift stores as a cheaper alternative to save money dealing with rising retail prices. Florida alone is witnessing an influx of retail shoppers turning to secondhand shopping. According to statistics provided by Starto.io, in Florida, households with incomes less than $25,000 make up 36.5% of customers that thrift. Younger shoppers are also starting to dominate the thrifting scene, with 40.4% of 18–24-year-olds making up these shoppers rushing to secondhand stores in Florida.

     

    Read the full article here

Page 7 of 7

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.

fas fa-chart-line
10
Current baseline tariff on all trading partners

Imposed under Section 122, these temporary tariffs are set to expire on July 24, 2026.

fas fa-earth-americas
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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