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Fashion made possible by global trade

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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.
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: 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."

Read more on Vogue Business
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
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.
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.
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.

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About

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

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

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

Learn More About USFIA

Learn About the Fashion Industry

Attend Our Events

News

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TRACKING TRUMP'S TARIFFS

USFIA has created a new web page to track tariff actions from the Trump Administration, featuring an interactive table with the latest information. Below are some high-level stats from this data.

Total tariffs paid by U.S. businesses and consumers

These tariffs have been paid under the IEEPA tariffs so far in 2025. As a reminder, tariffs are taxes paid by companies and consumers.

Total number of new tariff actions this year

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

Estimated tariff increase on apparel imports

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

See More Tariff Data

Events

Washington Trade Symposium

Washington, DC
REGISTER NOW

July 16, 2025

Benchmarking

Sourcing Trends & Challenges in 2025: Highlights from USFIA's Annual Benchmarking Study

Virtual
REGISTER NOW

July 31, 2025

Annual Conference

Apparel Importers Trade & Transportation Conference

New York, New York
SAVE THE DATE

November 5, 2025

Reports

2025 Sourcing Trends & Outlook Report

USFIA's 2025 Sourcing Trends & Outlook Report is out. Members can log-in to the website to download it here.

The top 5 sourcing trends in the 2025 report are:

Asian apparel suppliers continue to dominate sourcing.
China maintains its role as the top supplier.
Higher costs are easing with lower average unit values.
New suppliers highlight apparel sourcing opportunities.
Despite high duty rates, FTAs and preference programs remain underutilized. CAFTA remains the major duty-free supplier.

The sourcing report includes a special section with global trade data prepared by Dr. Sheng Lu, professor in the Fashion and Apparel Studies Department at the University of Delaware. Dr. Lu highlights the high cost of tariffs over the last 14 years, with U.S. fashion companies paying $11.9 billion in tariffs on apparel imports in 2024.

Top U.S. Apparel Suppliers in 2024 by Quantity

When it comes to apparel, Asian suppliers continue to dominate the U.S. market. The top seven suppliers continue to ship more than 70% of total apparel imports. Again this year the three largest apparel suppliers represent just over 60% of apparel imports.

2025-sourcing-report-top-apparel-suppliers-quantity.jpeg

Top U.S. Apparel Suppliers in 2024 by Value

By value, China is the top supplier of U.S. apparel imports, but China no longer dominates the import data. There are 18 suppliers that ship 1% or more of apparel imports by value, with several suppliers who make the list thanks to shipping higher value apparel to the U.S.

2025 Sourcing Report trend: FTAs and Preference Programs Remain Underutilized

With duties on apparel as high as 32%, there are many reasons to take a fresh look at the apparel and textile manufacturers eligible for preference programs and free trade agreements. The value of U.S. apparel imports that qualify for duty-free access during 2024 increased slightly from one year ago.

2024 USFIA Fashion Industry Benchmarking Study

This is the eleventh USFIA Benchmarking Survey and again fashion industry sourcing executives face a litany of challenges. Concern over the economy and inflation, as well as eliminating forced labor, continue to be top concerns in the U.S. fashion industry. This year's respondenents also report an elevated level of concern about the impact of shipping and supply chain disruptions as well as geopolitical tensions.

New for this year is a sharp increase in sourcing executives who are concerned about the protectionist trade policy agenda in the United States, with 45% ranking it a top-5 business challenge, compared with just 15% last year.

Download the complete study here, and see the highlights below: