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Fashion made possible by global trade

Fashion made possible by global trade

Fashion made possible by global trade

TPP

  • TPP Apparel Coalition Applauds Signing of the TPP

    On February 3, 2016, the TPP Apparel Coalition, which includes the United States Fashion Industry Association (USFIA), applauded the signing of the TPP in Auckland, New Zealand. The coalition's statement is available here.

  • USFIA & FDRA Publish Op-Ed on TPP

    On August 30, 2016, the United States Fashion Industry Association (USFIA) and the Footwear Distributors & Retailers of America (FDRA) published an op-ed in the Washington Examiner about the Olympics, and how Team USA’s big wins emphasize how the United States is a winner in the pool, on the mats, on the courts, and around the track—but not on trade: 

    During the Olympics, we are often reminded of the innovation that drives our industries — for example, the Nike Flyknit debut during the 2012 London games, the use of 3D printing to engineer better running shoes for Rio, lighter cleats, more breathable fabrics for soccer and basketball uniforms and sunglasses designed to reduce the effects of wind. 

    Yet this clothing and footwear comes at a high price. While the U.S. government taxes all products that cross the U.S. border at just 1.4 percent on average, it places import taxes averaging 11 percent on footwear and 13 percent on apparel. 

    This limits the ability of American companies to innovate and drives up the cost of shoes and clothes for hardworking individuals and families. 

    Read the op-ed at the Washington Examiner.

     

  • USFIA Publishes Op-Ed on Broad Impact of TPP

    On February 12, 2016, USFIA President Julia K. Hughes joined Mara Burr, former Deputy Assistant U.S. Trade Representative for South and Central Asia, in publishing an op-ed in the Sourcing Journal on the broader impact of the Trans-Pacific Partnership (TPP). The op-ed was published during the ASEAN Summit in California, and discusses the geopolitical implications of the historic agreement. The op-ed is available on the Sourcing Journal website

  • USFIA Recognizes Completion of TPP Negotiations

    Following the announcement that the Trans-Pacific Partnership (TPP) Ministers have concluded negotiations and reached a final agreement, the United States Fashion Industry Association (USFIA) released a statement recognizing the conclusion of the deal and expressing hope that the agreement will benefit the fashion industry:

    “The Trans-Pacific Partnership represents an important opportunity for American fashion brands, retailers, importers, and wholesalers, who are already doing significant business in several TPP partner countries,” says Julia K. Hughes, President of USFIA. “On behalf of our members, thank you to U.S. Trade Representative Michael Froman and his team for their many years of hard work to conclude this agreement.” 

    “The fashion industry has been eagerly awaiting the completion of this agreement and we look forward to seeing the final text to see how it can benefit our members,” continued Hughes. “We remain hopeful that the TPP will indeed be a high-standard agreement that recognizes the 21st-century global value chain and economic contributions of these companies, which work hard to create high-quality jobs in the United States and affordable, high-quality apparel products for American families,” she concluded. 

    According to the 2015 USFIA Fashion Industry Benchmarking Study, which we released in June, we found that our members already source from five TPP partner countries: Vietnam, Peru, Mexico, Malaysia, and the United States. Nearly 80 percent of respondents said they expect the TPP to affect their business practices. However, the level of impact depends on the rules of origin and market access provisions; 83 percent called for abandoning the strict “yarn-forward” rule of origin, and 45 percent hoped the TPP short-supply list would be expanded. 

    “We understand the final agreement contains a yarn-forward rule of origin and limited short-supply list, though we remain hopeful it also will include many opportunities for fashion brands, retailers, importers, and wholesalers to expand their global businesses,” concluded Hughes. 

    The full statement is available on our website

  • USFIA Testifies at ITC Hearing on TPP

    From January 13-15, 2016, the U.S. International Trade Commission (ITC) held three days of hearings on the “Trans-Pacific Partnership Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors.” On the last day of hearings, representatives from major U.S. fashion, footwear, retail, and cosmetics associations testified about the impact of the TPP on the industries. All of the organizations expressed support for TPP, but many also noted the missed opportunities, especially for textiles and apparel. In her testimony, USFIA President Julia K. Hughes expressed the association’s support for “better market access, not just to boost U.S. exports or U.S. imports, but to facilitate global trade.” However,

    USFIA continues to believe that the United States should change its negotiating stance to recognize the global value chain and the jobs created by American brands, retailers, and importers. Unfortunately, the TPP falls short. There are certainly benefits in the agreement for USFIA member companies, but the agreement maintains the basic restrictive provisions that have existed since the negotiation of NAFTA in the early 1990s, and which ignore the international scope of the fashion industry… 

    From this perspective, USFIA and our members applaud the conclusion of the TPP agreement. Nevertheless, we remain disappointed that the negotiators missed the opportunity to craft an agreement that recognizes the way that fashion brands and retailers do business. The lengthy duty phase-outs for many key products, and the reliance on a yarn-forward rule of origin, limit opportunities for our members to reach new consumers in the TPP countries and limit our opportunities to create jobs in the United States

    Hughes expanded on the benefits and opportunities in the agreement in her testimony, which is available for download here.

    For the latest on the status of the TPP, we encourage you to attend USFIA Fashion Forward: San Francisco on February 12th, where Joshua Teitelbaum, Deputy Assistant Secretary for Textiles, Consumer Goods, & Materials at the U.S. Department of Commerce, will provide an update

  • VietNamNet: Vietnam’s textile-garment industry in the post-TPP period

    According to Hai Quan (Customs) newspaper, US Fashion Industry Association President Julia K Hughes said many US companies were willing to seek supply sources from nations joining the TPP agreement once it took effect.  

    Vietnam was ranked highest in terms of its ability to draw new businesses, Hughes said, so she advised Vietnam utilize its new opportunities.

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

  • WWD: Fashion Industry Lauds TPP Deal as Congressional Battle Looms

    By Kristi Ellis

    Julia K. Hughes, president of the U.S. Fashion Industry Association, said, “The Trans-Pacific Partnership represents an important opportunity for American fashion brands, retailers, importers and wholesalers who are already doing significant business in several TPP partner countries.”

    Hughes said USFIA’s benchmarking study released in June showed its members currently source from five TPP partner countries: Vietnam, Peru, Mexico, Malaysia and the U.S. Nearly 80 percent of respondents said they expect the TPP to affect their business practices.

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

  • WWD: Fashion Industry to Get Immediate Boost From TPP

    By Kristi Ellis

    While many high-volume “sensitive” products will be subject to longer tariff phaseouts, with some having to wait 12 years for duty elimination, many were also granted duty-free treatment on Day One. Of note to women’s wear firms, dresses and skirts in all fabrics, ranging from cotton to rayon and wool, are set to become duty-free on the first day of implementation, according to Julia Hughes, president at the U.S. Fashion Industry Association, who was briefed by top U.S. trade officials at her group’s board meeting in New York on Thursday.

    “In our world we live and die season by season,” Hughes said. “If you are talking about 14 years until you see some of the benefits and products going to full duty-free, that’s a long time. What is important right now is what will be immediately duty-free, and dresses and skirts in all fabrics that go duty-free on Day One will help women’s wear companies.”

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

  • WWD: Obama Administration Takes Procedural Step to Advance TPP

    By Kristi Ellis

    Julia Hughes, president at the U.S. Fashion Industry Association, said it is a “way to keep the conversation going and I think that is important.”

    “It is a very positive step,” Hughes said. “We are all pretty happy to have something positive to talk about. The fact is this is some progress when in some ways these have been the darkest days for trade with the continued antitrade rhetoric from the presidential candidates and indeed from other interest groups as well.”

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

  • WWD: Sourcing Executives Cautious About TPP Ratification

    By Kristi Ellis

    The percentage of fashion companies expecting to strongly increase sourcing from Vietnam fell significantly, as uncertainty related to the ratification of the Trans-Pacific Partnership trade pact loomed large, a new U.S. Fashion Industry Association survey revealed Wednesday.

    The survey included 30 of the largest U.S. retailers, apparel brands, importers and wholesalers, encompassing fashion firms, department stores and lifestyle brands selling a range of products from apparel and accessories to footwear and home goods.

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

  • WWD: TPP Prospects Dim but Not Dead

    By Kristi Ellis

    Julia Hughes, president at the U.S. Fashion Industry Association, said: “I won’t claim that we’re optimistic — but it’s not dead. As the campaign plays out over August and as we get into full election season in the fall, we’ll have to see where the dialogue is going. There have been a number of press reports that continue to reiterate the fact it could be doable in a lame duck if there is political will. There is not today, but there could be after the election.”

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

  • WWD: TPP, Cyber Issues Hang in Balance as Congress Enters Session

    By Kristi Ellis

    Julia Hughes, president at the U.S. Fashion Industry Association, said passage of TPP and the Customs conference report are her group’s priorities.

    “I think there’s definitely a good chance for TPP to pass this year,” Hughes said. “I still suspect that the best opportunity though will be after the election in the lame-duck session….We support TPP and we anticipate that Congress will approve TPP, but it is a question of what the best timing will be in what will be an incredibly politically charged year.”

    Click here to read the entire article on the WWD 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.

 

News

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.

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

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

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Total number of new and modified tariff actions this year

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

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Estimated tariff increase on apparel imports

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

Events

Reports

2025 Sourcing Trends Mid-Year Update

USFIA's 2025 Sourcing Trends Mid-Year Update is out with data from the first six months of 2025. Members can log-in to the website to download it here

The top 4 sourcing trends in the mid-year report are:

  1. China remains the top supplier of textiles and apparel.
  2. Asian apparel suppliers continue to dominate sourcing.
  3. Average unit values rise for yarns and apparel.
  4. Despite high duty rates, FTAs and preference programs remain underutilized.

 

2025 Mid-Year Sourcing Report: WTO's top Apparel Exporters in 2024

The European Union and China are basically tied as the largest suppliers of the world’s clothing. While China’s share of world exports has fallen since the 2010s, it manufactures 29% of apparel. The European Union – including Italy and France – ranks slightly larger as a supplier of the world’s clothing. The EU remains a strong apparel manufacturer, from the high-end fashion houses in Milan to lower cost producers. And the tariff framework agreement that limits the U.S. reciprocal tariffs means that the EU now could gain a cost advantage.

2025 USFIA Fashion Industry Benchmarking Study

This is the 12th USFIA Benchmarking Survey and unsurprisingly, fashion industry executives are more concerned with tariffs than ever. The top business challenges facing U.S. fashion companies center on the Trump Administration’s escalating tariff policy and its wide-ranging impacts on companies’ sourcing and business operations.

100% of respondents rated “Protectionist U.S. trade policies and related policy uncertainty, including the impact of the Trump tariffs” as one of their top business challenges in 2025. In taking the #1 spot, this challenge rose from #5 in 2024 and #11 in 2023, showing the increasing concern over the last few years.

Over 70% of surveyed companies reported that the higher tariffs increased sourcing costs, squeezed profit margins, and led to higher consumer prices.
Tariffs have been the most significant factor driving sourcing cost increases for U.S. fashion companies in 2025. And amid higher tariffs and policy uncertainty, about 65 percent of respondents feel optimistic about the next five years in 2025, a decline from 75 percent one year ago.

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

 2025 USFIA Benchmarking Study - Respondents expressed the most concern about protectionist U.S. trade policies and their ripple effects in 2025


Higher tariffs have triggered ripple effects across supply chains.

2025 USFIA Benchmarking Study - Figure 1-3 US fashion companies reported broad economic impacts of the escalating tariffs on their sourcing and business operations

2025 USFIA Benchmarking Study - Figure 1-4 U.S. fashion companies explored various methods to mitigate the tariff impacts

 


U.S. fashion companies are actively exploring new sourcing opportunities, with a particular focus on emerging suppliers in Asia

2025 USFIA Benchmarking Study - Figure 2-20  U.S. fashion companies plan to exand apparel sourcing from emerging sourcing destinations in Asia and the rest of the world through 2027


 

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