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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

Tariffs

  • USFIA Testifies at 301 Hearings, Urges Administration to Leave Fashion Off List of Products Subject to New Tariffs

    Today, USFIA President Julia K. Hughes testified during the Office of the U.S. Trade Representative’s hearing on Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. In her testimony, she emphasized the importance of global trade for our industry and explained how tariffs would harm jobs in our sector and the price of clothing for consumers. The testimony as distributed at the meeting is available here.

  • USFIA to Testify Today Against Section 301 Tariffs on Clothing, Home Textiles and Footwear

    FOR IMMEDIATE RELEASE 

    WASHINGTON, D.C. – Today the U.S. Fashion Industry Association joins hundreds of American companies who are speaking out against the Trump Administration's proposal to impose additional tariffs on American families.  Our message is clear --  These tariffs are a tax that will be paid by American companies and ultimately by American consumers.   

    USFIA calls on the Administration to exempt all clothing, home textiles and footwear from these retaliatory tariffs.  Clothing, home textiles and shoes for American families are currently taxed more than $15 billion per year.  And these tariffs already are extremely high -- tariffs on clothing can be as high as 32 percent.  Tariffs are a direct tax on the American consumer—and will affect consumers at all income levels, from the single parent struggling to make ends meet as they purchase back-to-school necessities for their kids, to the consumer of high-end fashion manufactured in the United States, and every American family in between.

    In USFIA’s statement we highlight the fact that these tariffs will hurt American brands, retailers and wholesalers.  Higher prices and lower sales will threaten jobs:  from entry level retail positions to highly paid design, sourcing and e-commerce positions.  

    We also rebut the claims that higher tariffs will bring manufacturing jobs back to the U.S.   USFIA and our members support Made in USA and manufacturing in the U.S., but there is not the capacity to make apparel in the United States today.  “Apparel and textile supply chains are complex, and already involve inputs from multiple countries.  Talking with sourcing executives, they say that it takes anywhere from two to five years to identify and approve a new vendor.” In USFIA’s 2019 Benchmarking Survey, which will be released in July, not a single respondent said that they had found the capacity for production to return to the U.S.  And some respondents said they are worried that the China tariffs will increase costs for their Made in USA products and exports.  

    These tariffs on imports of clothing, home textiles and footwear will do little to punish China for its intellectual property and technology transfer practices but do a lot to harm American fashion brands and retailers as well as consumers of their products.   Let’s find a solution that does not use American companies and American families as the hostages to a trade deal.  

    Click here to read USFIA President Julia K. Hughes’ full testimony as prepared for the hearing. 

    USFIA’s full comments are available here. 

    To speak with Hughes or another industry expert, contact Molly McNulty, USFIA Communications Coordinator, 202-419-0444, This email address is being protected from spambots. You need JavaScript enabled to view it.

     

  • USFIA Webinar Series: Strategies for Minimizing the Impact of the New Tariffs on Your Business

    The United States Fashion Industry Association Presents

    Fighting on the Frontlines of the Trade War: Strategies for Minimizing the Impact of the New Tariffs on Your Business

    The U.S.-China trade war has reached the fashion industry. Starting September 24, 2018, the Trump Administration will impose tariffs of 10 percent on many textile and fashion products; these tariffs will increase to 25 percent on January 1, 2019. Join the United States Fashion Industry Association (USFIA) for a series of webinars to help you understand—and minimize—the impact of the new tariffs on imports from China on your business.

    Click here to see the list of tariff lines affected by the tariff increases.

    These webinars are free for USFIA members and affiliates!

    If you have questions about these webinars, or the new tariffs, contact This email address is being protected from spambots. You need JavaScript enabled to view it..

     

    How to Fight the Trade War: The Exclusion Process

    October 2, 2018 at 2:00 PM ET (11:00 AM PT)

    Are the new 10-25 percent tariffs on Chinese imports hitting your products in advance of the upcoming holiday season? It’s possible to get some reprieve—if you act quickly. The Office of the U.S. Trade Representative (USTR) has implemented a product exclusion process by which companies may request the exclusion from these duties on one or more products on the list subject to the Section 301 tariffs. Join the United States Fashion Industry Association (USFIA) and USFIA Associate Member Arent Fox for a 30-minute webinar to learn the what, how, and when of the exclusion process—including an overview of the specific forms and guidelines, the deadlines for submitting the requests, and how to file responses to posted requests.

    USFIA Members/Affiliates & Arent Fox Clients: $0

    Non-Members: $95

    Click here to register for The Exclusion Process.

     

    How to Fight the Trade War: The Broker’s Perspective

    October 4, 2018 at 2:00 PM ET (11:00 AM PT)

    So, you’ve realized some of your imports from China are going to be subject to the new Section 301 tariffs—which will be 10 percent now, and up to 25 percent by January 2019. There are a variety of strategies to help your company avoid or reduce the impact of the tariffs—many of which could have an enduring benefit for your company beyond these specific tariff increases. Join the United States Fashion Industry Association (USFIA) and Mary Jo Muoio, Senior Vice President of USFIA Customs Broker Partner GEODIS USA, to get the customs broker’s perspective on how to deal with tariff increases. Mary Jo will draw from her many decades of experience as a savvy customs broker in the industry, as well as her intel from U.S. Customs & Border Protection, to help you save your company money on duties in the immediate- and long-term.

    USFIA Members/Affiliates & GEODIS USA Clients: $0

    Non-Members: $95

    Click here to register for The Broker's Perspective.

     

    How to Fight the Trade War: Triage Your Supply Chain

    October 11, 2018 at 2:00 PM ET (11:00 AM PT)

    Are the new 10-25 percent tariffs on Chinese imports hitting your products in advance of the upcoming holiday season? It’s possible to get some reprieve—from these new duties, and others—if you think creatively to triage your supply chain and take advantage of duty-savings initiatives. Join the United States Fashion Industry Association (USFIA) and Laura Rabinowitz, Special Counsel at USFIA Associate Member Kelley Drye & Warren LLP, for a webinar covering a variety of smart strategies to save money in your supply chain. Laura will draw from her decades of experience handling international trade projects for a wide range of clients, as well as her depth of knowledge regarding global customs law, to cover topics including First Sale, drawback, temporary importation bonds (TIBs), bonded warehouses, shipping in-bond, and American Goods Returned, among other ideas.

    USFIA Members/Affiliates & Kelley Drye Clients: $0

    Non-Members: $95

    Click here to register for Triage Your Supply Chain.

     

  • USFIA: New Tariffs on China Won’t Bode Well for Skirting Trade War

    Following our testimony at USTR’s Section 301 hearing on new tariffs on China, USFIA President Julia Hughes published an op-ed in Sourcing Journal, New Tariffs on China Won’t Bode Well for Skirting Trade War. She writes,

    While no one knows what the next executive order, or tweet, will bring in terms of trade policy, those of us in the fashion industry do know a trade war with China—and specifically, new tariffs on fashion and apparel products manufactured in China—will raise prices for American families, harm jobs in the United States, and won’t do anything to solve concerns about China’s IP policies and practices.

    In 2017, U.S. apparel imports grew just over 3 percent in volume and about 1 percent in value. China remains the dominant supplier of these products, supplying 49 percent of total textile and apparel products, and just over 40 percent of apparel, without any clear contender to replace China should the much-hyped trade war become reality. (The No. 2 supplier of apparel, Vietnam, is far behind, shipping just 13 percent of our apparel products.)

    Click here to read the op-ed on the Sourcing Journal website.

  • VINATEX: New tariff policy after July 24: Vietnam’s Textile and Garment industry amid global supply chain restructuring

    On a 25 August deadline, VINATEX reports on recent sourcing changes affecting Vietnam's apparel industry. 

    August 25, 2026

    The following is an excerpt...


    Tariffs primarily drive Supply chain shifts

    The new Section 301 structure establishes three distinct tariff tiers. A group of 17 economies is subject to an additional 10% tariff on top of the MFN rate. For goods from the EU and Taiwan, if the MFN rate is below 10%, the Section 301 tariff is applied only to the difference needed to bring the combined MFN and Section 301 rates to 10%. If the MFN rate is already 10% or higher, the Section 301 tariff is zero. Similarly, the applicable threshold for Japan, South Korea and Switzerland is 12.5%. Other economies, including Vietnam, China, Hong Kong, Thailand and Turkey, are subject to an additional 12.5% tariff on top of the MFN rate.

    In addition, the United States has decided to establish tariff-rate quotas (TRQs) for certain textile and apparel products from Bangladesh, Cambodia, Indonesia and Malaysia, based on the volume of U.S. cotton and textile materials imported by these countries. The USTR stated that the mechanism could not be implemented immediately when the new tariffs took effect, but is expected to be established from September 1, 2026. Until the USTR formally establishes the TRQs and announces their effective date, the relevant goods will remain subject to the 10% Section 301 tariff.

    Experience from previous rounds of Section 301 tariffs shows that tariffs can significantly reshape import patterns, but do not necessarily bring manufacturing back to the United States on a corresponding scale. According to the U.S. International Trade Commission (USITC) report Economic Impact of Section 232 and 301 Tariffs on U.S. Industries, the Section 301 tariffs imposed on Chinese goods during 2018–2021 were passed through almost entirely to the prices paid by U.S. importers. Across all products, on average, a 1% increase in tariffs reduced both the value and volume of imports from China by approximately 2% after businesses had time to adjust and develop alternative sources of supply.

    For the apparel industry, by 2021, the tariffs were estimated to have reduced imports from China by 39.1% compared with a scenario without tariffs, while imports from other sources increased by 25.2%. Meanwhile, U.S. domestic production increased by only 6.3%. Prices of imports from China rose by 14.5%, prices of U.S.-made products increased by 3.1%, and average market prices rose by 4.3%.

    A U.S. Fashion Industry Association (USFIA) survey published in July 2026 reached a similar conclusion: only 10.5% of companies increased their purchases of “Made in USA” products, while 57.9% continued to diversify their sourcing countries and 63.2% renegotiated contracts with suppliers.


    Read the full article here. 

     

  • VN Express: Producers in China eye Vietnam in wake of US tariffs

    By Minh Nga

    In its annual “Fashion Industry Benchmarking Study” released in July, the U.S. Fashion Industry Association said while 100 percent of respondents currently source from China, around 67 percent plan to somewhat decrease their sourcing value or volume from the country over the next two years, a significant increase from 46 percent in 2017.

    A study done in April and May of nearly 30 leading fashion brands, retailers, importers, and wholesalers, including some of the largest brands and retailers in the U.S, also found concerns about the trade tensions that seem to have more of an impact on decisions to shift sourcing from China.

    Click here to read the entire article on the VN Express website.

  • Vogue Business: Fashion Confronts the Realities of Tariff Refunds

    On a 11 May deadline, Vogue Business reports on the tariff refunds process:

    Jessica Binns | May 11, 2026

    The following is an excerpt....

     

    Wood points to the disparity at play. “Bigger and more financially stable organizations will always have an advantage given their purchasing power and ability to invest in both process and technology infrastructure,” he says. “The IEEPA situation has done little to change that.”

    From the brand side, Lexi Petersen, founder and chief creative officer of jewelry brand Cords Club, sees the same divide emerging in real time. “It’s quickly becoming a ‘get rich or go home’ environment for smaller and mid-sized brands,”

    The imbalance is both technological and financial. Julia Hughes, president of the UnitedStates Fashion Industry Association, notes that CBP itself estimates the cost of applying for IEEPA tariff refunds at roughly $18.7 million across affected importers, including internal labour, administrative and filing-related expenses. 

     

    Read the full article here.

  • Vogue Business: Fashion’s New Trade Reality

    On a 23 February deadline, Vogue Business reports on the recent US Supreme Court Ruling on IEEPA-based tariffs.

    Jessica Binns| February 23, 2026

    The following is an excerpt....

    The ruling is “a tremendous victory for American consumers and American businesses”, says Julia Hughes, president of the US Fashion Industry Association, noting that fashion brands and retailers already carry some of the highest tariff burdens of any sector. Her organisation is calling on the administration to develop an efficient, automatic refund process to return what she estimates to be more than $133 billion in IEEPA tariffs collected from industry.

    Read the full article here. 

  • Vogue Business: How fashion and beauty are preparing for triple-threat tariffs

    'Trump Majeure' clauses are among the ways brands are navigating the uncertainty of US trade policy as new duties on imports from Mexico, Canada and China go into effect.
    Jessica Binns | February 3, 2025

    On Saturday, President Donald Trump signed executive orders imposing tariffs on China, Mexico and Canada, the US's largest trade partners, under the International Emergency Economic Powers Act (IEEPA). To go into effect on 4 February, the tariffs will impact a third of all goods shipped into the US - including clothing, footwear and beauty products....

    All of this will impact the fashion and beauty industries, both in the US and outside of it, with consumers likely to bear at least some of the brunt. (US customers of Canadian retailers like Ssense and Artizia were already questioning how the changes would impact their orders; thanks to the de minimis loophole closure, they could end up paying more in taxes.) Many brands and retailers began preparing for the tariffs when they were first proposed last year, but how prepared are they?

    ...

    Trump has indicated that his focus is on revitalising domestic manufacturing rather than targeting consumer products, notes Julia Hughes, president of the United States Fashion Industry Association. "Maybe that means that the tariff battles will focus on other products since there already are very high tariffs on apparel and footwear," she says, referencing the current Section 301 tariffs, which apply a 7.5 to 25 per cent rate to many types of China-born clothing and shoes. "But we're waiting to see."

  • Vogue Business: How Fashion Is Getting Tariff Refunds

    On a 7 April deadline, Vogue Business reports on the tariff refunds process.

    Jessica Binns| April 7, 2026

    The following is an excerpt....

     

    The challenge is less straight forward where pricing adjustments were embedded more broadly. In many cases, the increases weren’t uniform or directly tied to a single line item,and they varied by product and by customer, so linking those increases back to a specific tariff cost becomes much more difficult, Santos adds.

    For industry groups, however, the question is less about legal theory than practicalimpact.

    “One definite issue is the class-action lawsuits against some companies and brands askingfor payment to consumers,” says Julie Hughes, president of the United States Fashion Industry Association (USFIA), which counts Ralph Lauren Corporation, Macy’s, Walmart, Under Armour and JC Penney among its membership. “It’s a complicated question. Some companies raised prices to cover the tariff s, others did not. Some small businesses especially need the refunds to stay in business.”

    The legal and commercial implications remain unsettled — and, in many cases, contingent on how quickly refunds are processed.

     

    Read the full article here. 

  • Vogue Business: New Tariffs Could Target Forced Labor. Is It a Fix?

    On a 11 May deadline, Vogue Business reports on the effect of tariffs on forced labor trends:

    Tara Donaldson | May 11, 2026

    The following is an excerpt....

     

    As part of a new investigation designed to examine how well US trading partners are keeping forced labor out of their supply chains, the Office of the United States Trade Representative (USTR) is currently evaluating whether it can impose Section 301 tariffs on countries that aren’t doing such a great job. While President Trump had previously imposed Section 301 reciprocal tariffs under the out moded International Emergency Economic Powers Act (IEEPA), which the Supreme Court ruled in February he couldn’t invoke, forced labor is the new avenue he’s taking to reinstate the previous tariffs.

    The stopgap Section 122 10% tariffs that were upheld by the Supreme Court are slated to expire on July 24, and a lull between that and the next batch is unlikely. “I anticipate by July 24, we’ll see these new tariffs announced, maybe even before,” says Julia K. Hughes, President of the United States Fashion Industry Association (USFIA).

    There are 60 countries on Trump’s latest target list — which spans all of fashion’s key producers, including Bangladesh, China, and Vietnam, and accounts for more than 99% of US imports. It’s “the broadest tariff trigger ever used under Section 301”, Strickler says, and it could lead to across-the-board tariffs on imports from so-deemed non-compliant countries. Textiles and apparel are at the greatest risk.

    ...

    Tariffs are too indirect to be similarly effective, says Hughes. Forced labor risk is often embedded deep upstream, while tariffs hit the import transaction at the border. Imposing tariffs doesn’t necessarily create a clean break with tainted supply or require traceability either. And for the pressure of punitive duties to work, the economic pain has to exceed the cost of changing labor practices.

    The tariff may be high enough to effect change, but whether it adequately addresses forced labor remains to be seen. Certainly, fashion will take a hit either way. The new tariffs are intended to replace the previous Section 301 reciprocal tariff and could similarly reach as high as 25%, depending on the country. Looking at Europe specifically, where forced labor standards are often tougher than in the US, a big question, Hughessaid, is whether the EU will be hit by this.

    “It’s hard to read the tea leaves,” Hughes adds. “I would expect that there would be different tariffs for different countries since there’s a focus on some countries more than others.” Combined, these two investigations are intended to yield at least the same tariff rate asthe reciprocal 301 and “maybe higher”, says Hughes.

    At the end of April, USTR also released its annual Special 301 Report, looking at the global state of intellectual property protection. In it, they named Vietnam as a target they could open a case against for IP violations. The US is “ratcheting up the pressure onVietnam”, says Hughes, adding that this could serve as yet another avenue for the administration to raise tariffs on the second largest supplier of clothing to the US.

    “They’re looking for all mechanisms to be able to have the threat of tariffs,” says Hughes. “We don’t really have any indicators of where this might go.”

     

    Read the full article here.

  • Vogue Business: New US tariffs throw fashion's supply chain into turmoil

    Trump's 'Liberation Day' tariffs could reshape the fashion industry as we know it. Here's what's at stake.
    Jessica Binns | April 3, 2025

    In less than three months, President Donald Trump has upended global trade with a wave of tariffs aimed at allies and adversaries alike, stoking fears that the escalating dispute could spiral into a full-blown trade war and push the US economy toward recession. Now, he’s announced reciprocal tariffs on more than 180 countries and territories — an unprecedented move that could amount to a no-holds-barred assault on the global flow of goods.

    For the fashion industry, with its deeply entrenched, Asia-centric supply chains, the stakes couldn’t be higher....

    Despite years of strategic decoupling to reduce an overreliance on Made in China, fashion remains deeply exposed to Asia, leaving many brands vulnerable to the latest trade disruptions. Last year, more than 60 per cent of apparel imports into the US came from China, Vietnam and Bangladesh, the world's top three clothing producers, says Julia Hughes, president of the United States Fashion Industry Association (USFIA).

    While Vietnam is also subject to tariffs, viable production alternatives remain limited, making it a desirable option for brands looking to lower their costs. Shifting
    manufacturing is not an overnight solution — production schedules require four to six months of planning, and capacity constraints present a significant challenge. In the short term, relocation options are scarce.

    Bangladesh has some capacity to absorb the overflow from shifting supply chains, but persistent concerns around labor conditions, safety, and political unrest make it a less attractive alternative, according to Vincent Quan, associate professor at the Fashion Institute of Technology (FIT). Brands are acutely aware of the reputational risks tied to sourcing decisions, and few are willing to invite scrutiny or negative press.

    It’s unclear whether Trump intends these reciprocal tariffs as a bargaining chip or a long- term strategy. “It seems that some in the administration say the tariffs will be used to negotiate access to foreign markets, which means they could go away soon,” Hughes notes. “Or are these tariffs part of a long-term strategy to bring manufacturing back to the US?”

     

    Read more on Vogue Business
  • 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 the US-India Trade Deal Could Mean for Fashion’s Supply Chains

    On a 6 February deadline, Vogue Business reports on the recent US India Trade Deal.

    Jessica Binns| February 6, 2026

    The following is an excerpt....

    India’s appeal as a sourcing destination extends beyond tariffs, and industry data suggests the country was already gaining ground before last year’s disruption. According to the US Fashion Industry Association’s 2025 Fashion Industry Benchmarking study, 77% of surveyed US fashion brands and retailers reported sourcing from India in 2025, with another 60% planning to expand sourcing through 2027. That momentum hit a speed bump when US tariffs on Indian goods exceeded 50%. Between September and November, India’s apparel exports to the US declined 16.25% year-on-year, underscoring how quickly punitive duties can suppress order flow, says Dr. A. Sakthivel, chair of India’s Apparel Export Promotion Council (AEPC).

     

    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.

  • 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 Business Outlook: Small Apparel Brands Are Redefining What Supply Chain Resilience Means

    On a 23 July deadline, World Business Outlook reports on small business sourcing flexibility requirements as researched in USFIA's 2026 Benchmarking Study.

    July 23, 2026

    The following is an excerpt...


    ...

    Why Supply Chain Resilience Now Means Something Different

    Tariffs have become the industry’s central sourcing concern. The Business of Fashion–McKinsey State of Fashion 2026 survey identified tariffs as fashion executives’ number-one hurdle. The 2025 USFIA Fashion Industry Benchmarking Study found that 60% of respondents planned to source from more countries outside China, showing why geographic diversification dominates the current resilience discussion.

    The same USFIA study found that more than 70% of respondents said higher tariffs increased sourcing costs and squeezed margins. Diversifying countries is a legitimate response, but it assumes enough volume, working capital, and staff to qualify and manage suppliers across several regions. Many smaller brands do not have that capacity.

    ...

    What Smaller Brands Are Doing Instead

    Smaller brands are using a different hedge: reducing the size of each commitment instead of spreading commitments across more countries. That can mean shorter production runs, more frequent purchase orders, and raw-material orders matched to near-term demand. A smaller order does not remove tariff or shipping risk, but it limits the cash and inventory exposed to one shipment. For teams that cannot justify full-roll purchases, Global Fabric Wholesale sells fabric by the yard instead of requiring bulk rolls, allowing material orders to stay closer to the needs of the next production run.

    The trade-off is cost. Smaller, more frequent orders often carry a higher unit price than one bulk order, so the strategy suits brands that prioritize cash protection and inventory control over the lowest possible unit cost. It also depends on supplier reliability. Ordering less from an unreliable partner only creates more frequent exposure to the same problem.


    Read the full article here. 

About

The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade.

USFIA represents brands, retailers, importers, and wholesalers based in the United States and doing business globally. Founded in 1989, USFIA works to eliminate tariff and non-tariff barriers that impede the fashion industry’s ability to trade freely and create jobs in the United States.

Headquartered in Washington, DC, USFIA is the voice of the fashion industry in front of the U.S. government as well as international governments and stakeholders.  With constant, two-way communication, USFIA staff and counsel serve as the eyes and ears of our members in Washington and around the world, enabling them to stay ahead of the regulatory challenges of today and tomorrow. Through our publications, educational events, and networking opportunities, USFIA also connects with key stakeholders across the value chain including U.S. and international service providers, suppliers, and industry groups.

 

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.

Events

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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