USFIA - United States Fashion Industry Association

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 trade policies top challenge for fashion firms in 2026: Study

On a 3 August deadline, Fibre2Fashion reports on the USFIA's 2026 Benchmarking Study.

August 3, 2026

Insights

Though US fashion firms are operating in a highly uncertain environment, compared with 2025, companies are moving beyond short-term crisis response and increasingly adopting longer-term strategies focused on supply chain optimisation, compliance capabilities and operational resilience, a study found.
'Protectionist US trade policies and related policy uncertainty' was ranked the top challenge in 2026.

Consistent with last year’s findings, respondents once again ranked ‘protectionist US trade policies and related policy uncertainty, including the impact of tariffs’ as their top business challenge in 2026.

However, several related concerns intensified this year. Increasing production or sourcing costs rose to the third most significant challenge, while protectionist trade policies and policy uncertainty in foreign countries remained among respondents’ top concerns.

In addition, managing forced-labour risks emerged as a significantly higher priority, rising from tenth place in 2025 to sixth place in 2026.

Despite several changes in U.S. tariff policy during the year, the survey results indicate that tariffs continue to impose broad and evolving impacts on fashion companies’ sourcing and business operations.

More respondents reported negative effects on company financial performance, higher sourcing costs, and reduced resources available for sustainability and product innovation compared with a year ago.

At the same time, companies adopted a broader range of mitigation strategies, including applying for tariff refund.

The survey finds little evidence that higher tariffs have encouraged large-scale reshoring of apparel production to the United States. Only about 10 per cent of respondents identified sourcing more ‘Made in the USA’ products as a strategy to respond to tariff increases.

Meanwhile, respondents were concerned that apparel sourcing under most US free trade agreements and preference programmes also became subject to additional tariff measures.

While most respondents remain optimistic about the five-year outlook for the US fashion industry, a growing share have adopted a more cautious outlook amid persistent economic and policy uncertainty.

While respondents generally expect apparel sourcing volume and value to increase this year, most anticipate only modest growth of lower than 5 per cent.

The optimism about the industry’s long-term outlook continued to somewhat soften. About 62 per cent of respondents expressed optimism regarding the next five years, the lowest level recorded since the study began tracking this measure.

The job market in the fashion sector was a bright spot. About 87 per cent plan to increase hiring over the next five years, up from 75 per cent in the 2025 survey and matching the highest level recorded since the pandemic.

Demand is expected to be strongest for data scientists, trade compliance specialists and environmental sustainability specialists.

Read the full article here.

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.

Fibre2Fashion: USFIA condemns new tariffs as disproportionate, damaging

April 3, 2025

INSIGHTS

USFIA has criticised new tariffs imposed by the Trump Administration, warning they will severely impact American fashion brands, consumers, and supply chains.
The fashion industry, heavily reliant on global manufacturing, already faces high tariffs—averaging 14.6 per cent on apparel.
Lower-income families and women will be especially affected.

United States Fashion Industry Association (USFIA) has voiced strong opposition to the Trump Administration’s latest decision to impose sweeping new tariffs on all imports, warning that the move will disproportionately harm American fashion brands, retailers, and families.

The new tariffs, some of which target key US trading partners with so-called ‘worst offender’ rates, are expected to significantly disrupt global supply chains—a cornerstone of the fashion industry. Industry leaders argue that few other sectors are as reliant on international manufacturing networks. A single garment can cross multiple borders before reaching the retail floor: a bale of cotton grown in Texas might be spun in Europe, woven in Korea, assembled in Vietnam, and ultimately sold back in Texas—or in global markets like Singapore, Japan, Dubai, or London.

“While tariffs can be a useful tool in addressing unfair trade practices, they disproportionately impact the fashion industry. US imports of textiles and apparel are subjected to some of the highest tariff rates. For example, in 2024, the average tariff on steel was 5 per cent, while the average tariff on apparel was a staggering 14.6 per cent,” the USFIA said in a press release.

The burden of these tariffs is not confined to businesses—it also hits American consumers, especially lower-income households. These families spend a higher proportion of their income on clothing and footwear, and the current system penalises them more harshly. For example, a luxury cashmere sweater faces a 4 per cent tariff, while a lower-cost acrylic equivalent is taxed at 32 per cent.

In addition, women are disproportionately affected due to what experts refer to as a ‘pink tax’—where women’s and unisex clothing is taxed at higher rates than men’s apparel. According to findings by the US International Trade Commission, US households paid $2.77 billion more in tariffs on women’s apparel than on men's in recent years.

Despite the high tariffs—including the $13.2 billion collected by Customs and Border Protection (CBP) in 2024, which represented 16.6 per cent of all tariffs, and an additional $2.48 billion in Section 301 remedies on textile and apparel goods—reshoring has not materialised. Only 3 per cent of apparel sold in the US is currently manufactured domestically, a figure that has remained relatively stagnant, the release added.

The USFIA is calling on the President and trade officials to reconsider the tariffs and instead work toward lowering costs for both businesses and families.

“We urge the President and Administration trade officials to reconsider these tariffs and focus on supporting American families and American companies with lower costs and the benefits of trade,” it said.

Read this on Fibre2Fashion

Fibre2Fashion: Utilisation rate of Bangladesh RMG among US firms drops sharply: Study

On a 23 July deadline, Fibre2Fashion reports on the utilisation rate of Bangladesh's garments among US firms as researched in USFIA's 2026 Benchmarking Study.

July 23, 2026

Insights

The utilisation rate of Bangladesh's garments among US firms fell sharply in 2026 to 78.9 per cent from 2025's 88.2 per cent as buyers intentionally maintain a diverse sourcing base prioritising capacity, flexibility, inventory agility and regional balancing, a USFIA study said.
Slow speed-to-market, limited supply chain flexibility and compliance concerns remain major challenges in Bangladesh.

The country received a score of only 2.3 out of five for speed-to-market, reflecting logistical constraints and its geographical distance from major consumer markets.

Bangladesh achieved a historic milestone by surpassing China in the US apparel market for the first time in decades, according to the survey conducted by the US Fashion Industry Association (USFIA).

During the first five months of 2026, Bangladesh accounted for 11.3 per cent of US apparel imports by value, after Vietnam's 22.2 per cent share, while China's share declined to 9.7 per cent.

Close to 47 per cent of surveyed firms reported that Bangladesh accounted for more than 10 per cent of their total sourcing value or volume, highlighting the country's continued strategic importance to global buyers.

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

Despite the lower utilisation rate, the report presented an optimistic outlook for Bangladesh as it ranked the country as the second most popular 'rising star' for future sourcing expansion, with 46.7 per cent of respondents planning to increase sourcing from the country over the next two years, second only to Indonesia.

Read the full article here.

How Tariffs Affect U.S. Apparel Import Prices and Retail Prices

Dr. Sheng Lu, Professor in the University of Delaware’s Department of Fashion and Apparel Studies, published a new analysis exploring the relationship between U.S. apparel import tariffs, U.S. apparel import prices, and U.S. apparel retail prices. We reprint it in full below:

According to the “America First Trade Policy” released in January 2025, the Trump administration aims to leverage tariffs to achieve various policy objectives, from reducing the U.S. trade deficit to countering “unfair” trading practices.

On February 1, 2025, the Trump Administration further announced the implementation of a 25% punitive tariff on imports from Canada and Mexico, along with an additional 10% punitive tariff on goods from China, in addition to the existing duties. With over 98% of clothing sold in the U.S. imported from abroad, U.S. fashion apparel companies are likely to be among the hardest hit by the tariff increase, particularly since Mexico and China are two of the leading apparel-sourcing destinations for the country.

This study aims to explore the dynamic relationship between U.S. apparel import tariffs, U.S. apparel import prices, and U.S. apparel retail prices. Since tariff rates, import prices, and retail prices are interrelated, a vector autoregression model (VAR) was used to analyze their interactions. The analysis was based on monthly data from January 2015 to November 2024 (latest data available), including:

U.S. apparel tariff rate (data source: USITC; tariff rate=value of calculated duties/custom values)

Price index of U.S. apparel imports (data source: St. Lous Federal Reserve; January 2015=100)

Price index of U.S. apparel retail price (data source: St. Louis Federal Reserve; January 2015=100)

Index of U.S. apparel retail sales (data source: St. Louis Federal Reserve; January 2015=100)

Consumer Price Index for all U.S. urban consumers (data source: St. Louis Federal Reserve; January 2015=100)

The results show that:

First, from January 2015 to November 2024, the average U.S. apparel tariff rate ranged from 12% to 17%. The fluctuation of the tariff rate during that period was primarily caused by the U.S. imposition of Section 301 punitive tariffs on imports from China, along with fashion companies shifting their sourcing from China to other countries, including members of U.S. free trade agreements.

Second, the average price of U.S. apparel imports rose by approximately 6% from January 2015 to November 2024, which aligns with the U.S. apparel retail price increase of 4%. However, this increase was significantly lower than the 34% rise in the U.S. Consumer Price Index (CPI) over the same period. This pattern shows that despite overall inflation and higher operational costs, apparel exporters and U.S. retailers remained cautious about increasing prices due to intense market competition.

Third, the impulse response function (IRF) indicates that a positive tariff shock (i.e., a tariff increase) would lead to a rise in the U.S. apparel retail price. However, the magnitude of this effect is moderate, with the impact being most felt two months later. Specifically, a one-standard-deviation increase in tariffs would result in a 0.16 standard deviation increase in retail prices during Period 3. In other words, the price effect of the tariff increase typically appears in about two months. However, U.S. fashion retailers usually do not transfer the entire burden of tariffs to consumers, likely because of fierce competition in the market.

Fourth, the impulse response function (IRF) indicates that a positive tariff shock (i.e., a tariff increase) would lead to a slight decline in U.S. apparel import prices. This price decrease would also persist for about three months. Specifically, a one-standard-deviation increase in tariffs would result in approximately a 0.01 standard deviation decrease in apparel import prices through Period 4. This result aligns with previous studies indicating that following the implementation of Section 301 punitive tariffs in 2018, some Chinese exporters agreed to reduce their selling prices to keep sourcing orders.

Fifth, the impulse response function (IRF) further shows that a positive tariff shock (i.e., a tariff increase) could hurt U.S. apparel retail sales in the short to medium term. Specifically, a one-standard-deviation increase in tariffs would lead to approximately a 0.82-2.33 standard deviation decrease in U.S. apparel retail sales from Period 3 through Period 5. This result may be driven by higher selling prices, suppressing consumer spending on clothing.

Additionally, the variance decomposition analysis reveals that, in the short to medium term, about 50% to 80% of the variation in U.S. retail prices is explained by its own past values, underscoring the persistence of retailers’ pricing practices. Meanwhile, U.S. apparel retail sales account for about 27% of the changes in U.S. apparel retail prices. In comparison, apparel tariff changes explained only about 5% of the retail price fluctuations. In other words, market factors, particularly consumer demand, play a more significant role in shaping fashion companies’ pricing decisions than tariffs.

In summary, the study’s findings confirm the interconnections between apparel tariff rates, U.S. apparel import prices, and U.S. retail prices, although these relationships turn out to be more complex and nuanced than previously suggested. It is important to note that only apparel imports from China were subject to tariff increases during the examined period in this study. If tariffs were to increase on apparel products from a broader range of countries during Trump’s second term, the economic impact on U.S. apparel retail prices could be much more significant and persistent.

Imposed Tariffs Could Result in Inflation, Affecting Luxury Goods

By Brielle Jaekel

While Europe is known more so for the manufacturing of luxury goods, the imposed tariffs on imports from China are so harsh they are likely to affect much of the retail industry. According to the United States Fashion Association, it is likely that these tariffs will drive up prices on products for the American consumer.

Click here to read the entire article on Luxury Daily's website.

IndexBox: U.S. Fashion Brands Consolidate Sourcing Networks Amid Tariff Uncertainty in 2026

On a 29 July deadline, IndexBox shares USFIA's 2026 Benchmarking Study.

July 29, 2026

Fashion labels are increasingly streamlining their supply networks, preferring to collaborate with a smaller number of highly capable suppliers over the coming two years, as detailed in a 2026 Fashion Industry Benchmarking Study released by the U.S. Fashion Industry Association.

Conducted in collaboration with Sheng Lu, a professor and graduate studies director at the University of Delaware's Department of Fashion and Apparel Studies, the research surveyed 30 American fashion firms from April to June 2026. Persistent trade and tariff uncertainties are driving these tactical adjustments, according to the report.

Read the full article here.

Industry Groups Ask Trump Administration to Update the Exclusion Process for Products Covered by the Section 301 Tariffs

The United States Fashion Industry Association (USFIA) joined with more than eighty industry groups to ask United States Trade Representative, Robert Lighthizer, for improvements to the exclusion process available for products that are affected by the penalty tariffs imposed under the 301 action against China. The letter contains proposals for product exclusion request procedures, and detailed recommendations regarding the criteria the Administration will use to evaluate product exclusion requests. Click here to read the full letter.

Inside U.S. Trade: Navarro: Mnuchin comment on China tariffs was ‘an unfortunate soundbite’

By Anshu Siripurapu

At a May 17 event hosted by the Washington International Trade Association, ACC President and CEO Cal Dooley and other panelists urged the U.S. to eschew unilateral tariffs and work with allies to pressure China at the World Trade Organization...

U.S. Fashion Industry Association President Julia Hughes also acknowledged the lengthiness of the WTO process but said it was where the U.S. could have the biggest long-term impact. The conversation should be about “what’s next for the WTO,” she said at the May 17 WITA event.

Click here to read the entire article on the Inside U.S. Trade website.

Inside U.S. Trade: Reacting to the threat of Section 301 tariffs

The U.S. Fashion Industry Association wants five minutes during a Section 301 Committee hearing next week to urge the administration “to reject calls to add apparel” to the list of products susceptible to tariffs on China imports should threatened levies be implemented.

Click here to read the entire article on the Inside U.S. Trade website.

Joint Industry Study Highlights Detrimental Economic Effects of Proposed China Section 301 Shipbuilding Actions

A group of more than 30 organizations representing a wide range of the ocean-going shipping supply chain today released “The Economic Effects of Proposed Action in the Section 301 Investigation of China’s Maritime, Logistics, and Shipbuilding Policies and Practices.” Conducted by Trade Partnership Worldwide, LLC, the report examines the net economic impact of the Office of the U.S. Trade Representative’s proposed shipbuilding remedies intended to penalize ocean carriers that use Chinese-built ships.

The report was released in advance of USTR’s hearing on “Proposed Action in Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance” being held next week to help guide discussions about how to best assist the U.S. shipbuilding industry that will take place there.

Key findings from the study include:

The proposed remedies would negatively impact the U.S. economy, reducing output and likely worsening the trade deficit.
While the U.S. shipbuilding industry might benefit, other sectors like farming, manufacturing and retail would suffer significantly.
U.S. agriculture exporters and workers would be hit hard, with major crop exports dropping dramatically, losing competitiveness to countries like Brazil, Canada, Russia and Australia.
Energy exports and goods from various manufacturing industries would decline due to higher shipping costs and reduced trade.
U.S. ports and related sectors would face negative impacts on output and employment.
The negative effects would ripple through supply chains, affecting manufacturers, importers, retailers and other stakeholders like wholesale and retail trade, hospitality and consumer services industries.

Notably, the report concludes “a comprehensive assessment of the various remedies suggested by USTR finds that in every case they would result in net losses for the U.S. economy, U.S. trade, and most of the U.S. shipbuilding supply chain. The proposed remedies, individually and in aggregate, would reduce U.S. GDP and likely worsen the overall U.S. trade deficit.”

View the full report here. You can read USFIA's comments for the USTR hearing here.

Just Style: Can Haiti apparel sector survive Hurricane Melissa, HOPE/HELP loss?

On a 31 October deadline, Just Style reports on recent natural disasters in Haiti and discusses HOPE/HELP program renewal:

Isatou Ndure| October 31, 2025

The following is an excerpt....

Julie Hughes, president of the US Fashion Industry Association (USFIA) tells Just Style she is very concerned about the impact of Hurricane Melissa on her colleagues in Haiti: “We know that there is major flooding and damage in key areas, but we do not yet have much information or a full assessment of the situation. We expect it could be several days before we know more.”

Hurricane adds to Haiti apparel sector’s ongoing trade uncertainty

The devastation adds a new strain to Haiti’s apparel sector as it was already grappling with the loss of key US trade benefits under the HOPE (Haitian Hemispheric Opportunity through Partnership Encouragement Act) and HELP (Haiti Economic Lift Program Act) schemes, which expired in September 2025.

The programmes had underpinned Haiti’s export-driven garment industry by granting duty-free access to the US market, so without them manufacturers face higher costs.

Read the full article here.

Just Style: China-US tariff reduction ‘positive’ but too high for apparel sourcing

On a 31 October deadline, Just Style reports on the recent China-US Tariff reduction:

Laura Husband | October 31, 2025

The following is an excerpt....

United States Fashion Industry Association (USFIA) president Julie Hughes shares Lamar’s sentiment, adding: “We are pleased to see a de-escalation of the trade tensions between the US and China. We hope that the two sides really are close to an agreement and look forward to more certainty for fashion brands and retailers.”

University of Delaware professor of fashion and apparel studies Dr Sheng Lu sees the newly announced US-China “trade deal” as providing “several benefits to fashion companies and their suppliers”.

Read the full article here.

Just Style: Four apparel sourcing trends to watch over the next two years

On a 27 July deadline, Just Style highlights important results from USFIA's Fashion Benchmarking Survey 2026:

Hannah Abdulla | July 27, 2026

The USFIA Fashion Benchmark Study 2026 was based on a survey of executives from 30 leading US fashion companies from April to June 2026. The study incorporated a balanced mix of respondents representing various business types in the US fashion industry.

This year’s survey found that in 2026, US fashion companies continue to operate in a highly uncertain business environment shaped by elevated tariffs, rising sourcing costs, geopolitical tensions, and increasingly complex regulatory requirements.

But compared with 2025, respondents looked to be moving beyond short-term crisis response and are instead increasingly adopting longer-term strategies focused on supply chain optimisation, compliance capabilities, and operational resilience.

Here are the four trends to watch over the next two years.

1. Optimising supply chain networks

There won’t be any dramatic swings in sourcing; instead, there will be a quiet reshuffling and strengthening of existing supplier networks. Over the next two years, the priority will be greater emphasis on supplier consolidation, strategic partnerships, and improving operational resilience, rather than simply expanding into additional sourcing countries or increasing the number of suppliers or vendors.

The survey shows only 21.1% of respondents plan to source apparel from more countries through 2027, down sharply from 58.8% in the 2025 survey. Likewise, only about 26.3% plan to source from more suppliers or vendors, also down from 41.2% in 2025. By comparison, nearly half of respondents (47.4%) plan to source from fewer suppliers or vendors over the next two years, almost three times the share reported in the 2025 survey (17.6%).

2. Regional balancing strategy over broad expansion

Buyers are concentrating sourcing across several countries in a region, particularly those outside Asia. Every company surveyed, on average, planned to increase apparel sourcing value or volume from about four countries over the next two years, down from five countries in the 2025 survey. This result again signals that while US fashion companies are not reversing sourcing diversification, the expansion has entered a more targeted and measured phase.

The specific countries that respondents planned to increase sourcing from also shifted, and “rising stars” were no longer concentrated in Asia. In 2026, Indonesia (53.3%), Bangladesh (46.7%), and Guatemala (40.0%) were the three most-cited destinations for increased apparel sourcing over the next two years. This is a noticeable reshuffle compared with previous years, when Asian countries consistently topped the list.

Likewise, about one-third of respondents planned to increase sourcing from Mexico, Egypt, and Honduras, the same share as those planning to expand sourcing from Vietnam, India, and Pakistan. These results suggest that regional rebalancing, rather than a continued concentration on Asia, is emerging as a more prominent trend in the sourcing strategies of US fashion companies.

There is no clear evidence that US fashion companies have fundamentally shifted away from their strategy of “reducing China exposure” or “de-risking”. But the survey results indicate US apparel sourcing from China could become relatively more stable over the next two years. Notably, the share of respondents planning to reduce sourcing from the country declined sharply from more than 80% in 2024 and 2025 to 40% this year.

Meanwhile, about 20% of respondents planned to increase sourcing from China, up from just 6% in 2025. One possible explanation was that many leading US fashion companies have already substantially reduced their reliance on China, leaving China’s sourcing share at a historical low as of 2026. As a result, some companies may now be seeking to rebalance their sourcing portfolios, particularly those that view China as a strategically important sales market.

Another possible explanation is that companies are placing greater emphasis on sourcing flexibility and agility, areas in which China continues to offer significant competitive advantages with no perfect alternatives. Consistent with this view, US fashion companies’ sourcing of apparel from China appeared to remain highly responsive to shifts in market conditions. For example, after several consecutive months of significant decline, US apparel imports from China suddenly rebounded by 18.1% in May 2026, well above the 2% world average

3. Western Hemisphere shows promise, but it’s limited

US apparel sourcing from the Western Hemisphere has promising growth potential but persistent bottlenecks, such as limited product diversification, may continue to constrain further expansion.

Despite US fashion companies expressing interest in expanding nearshoring from the Western Hemisphere, the region’s share of US apparel imports, including CAFTA-DR members and Mexico, has remained largely stagnant over the past decade. Notably, despite enjoying a 20–35 percentage-point tariff advantage over many competing suppliers since 2025, the region has not achieved a meaningful increase in its share of US apparel imports, whether measured by value or quantity.

Notably, over the next 2–3 years, surveyed US fashion companies planned to continue concentrating their apparel sourcing from the Western Hemisphere in a relatively narrow range of product categories.

For imports from CAFTA-DR countries, the most frequently cited categories included T-shirts (67%), activewear and athleisure (33%), and bottoms (27%). For imports from Mexico, the leading categories were T-shirts (47%) and bottoms (20%). In contrast, few respondents plan to expand sourcing of higher-value or more complex products, such as dresses, outerwear, and sweaters, from the region. This pattern was consistent with findings from previous surveys and suggested that limited product diversification remained a major constraint on the future growth of US apparel sourcing from the Western Hemisphere. Industry stakeholders attributed this challenge to the region’s limited textile manufacturing capacity and the restricted flexibility to use non-originating textile inputs under existing CAFTA-DR and USMCA apparel rules of origin.

Most respondents (over 65%) further indicated that access to duty-free benefits was among the most important incentives for sourcing apparel from CAFTA-DR members and Mexico. This finding underscores that exempting CAFTA-DR and USMCA-qualified apparel products from additional tariffs imposed by the Trump administration and avoiding policy uncertainty will be essential to supporting US fashion companies’ nearshoring efforts under the current business environment. Meanwhile, consistent with the region’s revealed competitiveness, respondents identified speed to market as a critical advantage of sourcing from CAFTA-DR members and Mexico. In addition, approximately a quarter of respondents cited lower geopolitical risks as another important incentive. By comparison, the region’s sustainability and compliance advantages have not yet emerged as major drivers of sourcing.

4. AI to be instrumental in apparel sourcing

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.

AI tools and their applications have already been integrated into US fashion companies’ apparel sourcing and various business operations. On average, each surveyed company reported using AI for three different areas. The most frequently cited AI use was “demand forecasting and inventory planning” (56.3%), followed by “sustainability tracking, risk management,” “risk management” and “sourcing strategy and cost optimisation” (50.0% each).

Meanwhile, 43.8% of respondents reported using AI to support customs, trade compliance, and tariff optimisation, reflecting the growing importance of managing an increasingly complex global trade environment. As AI technologies continue to advance quickly, they are likely to play an even more significant role in helping US fashion companies improve supply chain visibility, optimise sourcing decisions, strengthen supplier management, and enhance supply chain resilience.

Read the full article here.

Just Style: Should Mexico reconsider its new higher apparel tariffs?

Mexico increased its import duty on apparel products from 20-25% to 35% last month, however the US apparel sector is urging the country to pause the decision and an industry expert tells Just Style the hike could complicate its trade relationship with Asia.

Laura Husband | January 2, 2025

Measures designed to protect Mexico’s textile and apparel industries while addressing compliance challenges under the country’s IMMEX programme, which enables foreign companies to operate and manufacture in Mexico with low-tax structures and reduced-labour costs, took effect on 20 December 2024.

The decree, which was made by Mexico’s president Claudia Sheinbaumby means there is now a 10-15% increase on the import duty of 121 apparel products and 17 made-up textiles of Chapters 63 and 94, as well as a 10-15% increase on the import duty on 17 tariffs related to textiles.

As it stands the higher import duties will be in effect until 23 April next year (2026). ...

While United States Fashion Industry Association (USFIA) president Julie Hughes said shortly after Trump made his tariff threat against Mexico in November that “most brands and retailers are responding cautiously and will continue to review their strategies for dealing with uncertainty and maintaining agility in the supply chain”.

Just Style: Trump’s alleged key import tariff plan signals uncertainty for apparel

The US apparel industry should prepare for uncertainty as reports claim US President-elect Trump's advisors are considering a new tariff approach that might not include apparel.

January 7, 2025

US President-elect Donald Trump’s aides are said to be considering this new approach to tariffs, according to a report by The Washington Post, which cites three individuals familiar with the ongoing discussions.

Shortly after the publication of The Washington Post’s report Trump took to his Truth Social platform to denounce its coverage as erroneous and labelled it another instance of “Fake News.”

He wrote: “The story in the Washington Post, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back. That is wrong. The Washington Post knows it’s wrong. It’s just another example of Fake News.”

However, if the publication’s sources are to be believed a pared back tariff plan would mark a significant change for the apparel and fashion retail sectors from the stance Trump presented during his 2024 presidential campaign. ...

The United States Fashion Industry Association (USFIA)’s president, Julie Hughes agrees, stating: “We are in uncertain times during the transition to the new Trump Administration.”

She adds: “The contradictory messages about tariffs reflect the fact that no one knows for certain what policies will be enacted on Day One. No one likes uncertainty but it is the reality for at least the next few weeks.”...

Hughes hopes the new Administration will not target fashion and consumer products like apparel and footwear for additional tariffs.

She explains: “While the average duty on manufactured products is 2%, tariffs on clothing and footwear, including clothing for children and babies, can be as high as 32% for clothing and 65% for footwear. The elimination of these regressive taxes on American families — and the resulting lower prices — would be the best economic stimulus programme in recent history.”

Just Style: US protectionist trade policy is hampering onshoring ambitions

On a 23 July deadline, Just Style highlights important results regarding domestic sourcing from USFIA's Fashion Benchmarking Survey 2026:

Hannah Abdulla | July 23, 2026

USFIA says its study shows the US trade policy regarding tariffs “does not translate into reshoring of production”.

Compiled by the USFIA in collaboration with Dr Sheng Lu, professor of apparel studies at the University of Delaware and Emilie Delaye, graduate instructor at the University of Delaware, the annual survey once again cast doubts on the perception that higher tariffs alone can meaningfully promote the reshoring of US textile and apparel manufacturing.

Meanwhile, 47% of respondents reported that they “utilised more duty-free sourcing from members of US free trade agreements (FTAs) and trade preference programs” in response to tariff hikes.

This represents a significant decline from more than 72% a year earlier and likley reflects that, in 2026, apparel imports from most US FTAs and trade preference programs also became subject to higher tariffs, substantially reducing the benefits and incentives for expanding sourcing from these partner countries.

Qualified imports under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the US-Mexico-Canada Agreement (USMCA) were the only primary exceptions, which continue to receive preferential tariff treatment as of June 2026.

Sourcing from USMCA held steady in 2026, but respondents expressed hesitation in increasing sourcing from the region due to concerns over the agreement’s uncertain future.

76% of respondents sourced apparel from the members of the CAFTA-DR agreement in 2026, up from 64% in 2025. 24% sourced more than 10% of their apparel from the region concentrated among large companies typically using 2-3 members such as Guatemala, El Salvador and Honduras.

Apparel execs are looking to ramp up sourcing from the Western Hemisphere in a relatively narrow range of categories such as T-shirts, athleisure and bottoms from CAFTA-DR and T-shirts and bottoms from USMCA.

These findings are consistent with previous surveys and suggests limited product diversification remains a major constraint on the future growth of US apparel sourcing from the Western Hemisphere.

Access to duty-free benefits is one of the most important incentives for sourcing apparel from CAFTA-DR members and Mexico, respondents said, suggesting that exempting CAFTA-DR- and USMCA-qualified apparel products from policy uncertainty will be essential to supporting US fashion companies’ nearshoring efforts in the current business environment.

100% of respondents said they support maintaining the USMCA as a trilateral agreement.

Julia Hughes, president of the USFIA, reiterated: “The survey reinforces the fact that the policy of higher tariffs does not translate into reshoring of production. Only 10% of respondents identified sourcing more ‘Made in the USA’ products as a tariff response strategy.

“USFIA remains committed to working with brands and retailers and our supply chain partners to develop creative solutions and incentives to support manufacturing in the U.S. and in our key FTA partners. Fashion companies know from history that tariffs will not achieve that goal.”

Earlier this week, the USTR confirmed it would keep a 25% tariff in place on imported footwear from Brazil while Trump announced a 50% tariff on Canadian imports including apparel and textiles.

Read the full article here.

Just Style: USMCA-compliant goods exempt from US import tariffs on Mexico, Canada

All USMCA-compliant goods, which includes textiles and apparel, will be exempt from the tariff hike imposed on Canada and Mexico for at least a month, according to Washington.

Hannah Abdulla | March 7, 2025

On 6 March, President Donald Trump signed an executive order which would see most goods imported from Mexico and some from Canada exempted from his trade tariff regime for four weeks.

The tariff suspension will cover about half of imports from Mexico and about 38% from Canada.

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Julie Hughes, told Just Style the industry was suffering the effects of “tariff whiplash” – when tariffs are announced and then revised and maybe paused — which she said “sends a terrible message to the business community.”

“It undercuts confidence and the ability to plan, whether you make autos or computers or fashion. This action also ignores the fact that not all products with US inputs can meet the tough rules of origin for USMCA. We still are hurting apparel made with US cotton or US fabrics that use specialty yarns. We hope the Administration will see that tariffs are not the solution to every problem.”