USFIA - United States Fashion Industry Association

Sourcing Journal: Industry Has Swift and Varied Reactions to Supreme Court Tariff Decision

On a 20 February deadline, Sourcing Journal reports on the recent Supreme Court Ruling regarding IEEPA Tariffs.

Kate Nishimura | February 20, 2026

The following is an excerpt....

Calling the ruling “a tremendous victory for American consumers and American businesses,” Julia Hughes, president of the U.S. Fashion Industry Association, said fashion brands and retailers already pay some of the highest tariffs on apparel and footwear.

“This is a positive step forward to improve affordability and remove the economic uncertainty that has held back many companies from making new investments,” she added.

But now that the decision has been made, one key issue remains at the forefront for the fashion sector: tariff refunds.

Read the full article here.

Sourcing Journal: It Will Take More Than Tariffs to Bring Back U.S. Textile Manufacturing, Industry Insiders Say

On a 4 May deadline, Sourcing Journal reports on the inputs needed to rebuild the US Textile Manufacturing industry.

Kate Nishimura | May 4, 2026

The following is an excerpt....

Tariffs may have prompted trade diversification, but not to the U.S. market or even the Western Hemisphere, according to Dr. Sheng Lu, professor of fashion and apparel studies at the University of Delaware, whose research fueled the latest Fashion Industry Benchmarking Study released by the U.S. Fashion Industry Association.

A record-high percentage of surveyed companies opened up their sourcing to more than 10 countries last year, and almost 60 percent said they plan to source apparel from even more countries moving forward. Even with the push to broaden their portfolios, however, Asia remains a dominant source of U.S. apparel imports.

By value, a whopping 72.6 percent of U.S. apparel imports came from Asia in 2025, up from 71.6 percent the year prior. According to Lu’s research, Vietnam, Bangladesh, Indonesia, India and Cambodia collectively hit a new record, accounting for 50.6 percent of U.S. apparel imports last year, compared to around 37.1 percent pre-COVID-19. “In other words, due to production capacity constraints, many U.S. fashion companies have been diversifying sourcing within Asia rather than significantly shifting orders to other regions,” he wrote.

“Emerging sourcing destinations like Cambodia, Indonesia or India — they have built capacity and they’re supported by investors from China,” Lu told Sourcing Journal. He believes that’s the reason these countries saw export growth to the U.S. skyrocket last year.

Read the full article here

Sourcing Journal: Nicaragua Could Face 100% Tariffs After Probe Finds Labor Abuses That Harm US Commerce

On a 21 October deadline, Sourcing Journal reports on recent labor abuse reports in Nicaragua:

Jasmin Malik Chua| October 21, 2025

The following is an excerpt....

Writing in an email, Julia Hughes, president of the United States Fashion Industry Association, described the situation as a complex one. In her comment to Tai’s office in December, she had asked USTR to recognize the importance of an integrated Central America apparel and textile supply chain.

Hughes also questioned whether Section 301 was the right vehicle for sanctions when there are other statutory authorities that “explicitly” penalize bad actors, such as the Global Magnitsky Act. She said that despots foster deplorable conditions because they want to rule as despots, not because they seek to “burden or restrict U.S. commerce” as required by Section 301.

“USFIA strongly condemns the ongoing violations of labor rights and human rights in Nicaragua, and strongly condemns the erosion of the rule of law within the country,” Hughes said. “[But] we urge USTR to consider whether tariffs on Nicaraguan-origin apparel would punish the Ortega-Murillo regime or, in fact, would have the opposite effect of weakening independent institutions within the country.”

Read the full article here.

Sourcing Journal: Speed, Verticality and Co-Creation: Inside Artistic Milliners’ Western Hemisphere Ecosystem

On a 12 June deadline, Sourcing Journal reports new sourcing opportunities in the Western Hemisphere.

SJ Studio | June 12, 2026

The following is an excerpt....

Fashion teams are feeling the need for speed. Disruption has quickly become the new norm, with macro-scale events happening consecutively and concurrently rather than sporadically, requiring heightened risk management. By condensing development calendars and lead times, companies can achieve a closer response to demand, thereby improving inventory management. This means reducing markdowns and discounting while simultaneously preventing lost sales from slow trend adoption or stockouts.

A key way to accomplish this agility is through nearshoring. In the United States Fashion Industry Association’s Benchmarking Study from 2025, 47 percent of respondents said they are planning to expand sourcing from Mexico in the next two years, a steep increase over the 26 percent that stated the same in the 2024 survey. Additionally, half plan to increase sourcing from Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) member countries in the same timeframe. Due to this trade deal and the U.S.-Mexico-Canada Agreement (USMCA), these regions have been largely exempt from the Trump administration’s tariff hikes, raising the appeal of the neighboring sourcing destinations.

Read the full article here

Sourcing Journal: Weak Consumer Demand, Tariff Turmoil Set the Stage for 2026

On a 2 January deadline, Sourcing Journal reports on tariffs' effect in 2025.

Katie Nashimura | January 2, 2026

The following is an excerpt....

All 90 countries hit with tariffs will see more “visible and significant” impacts to their exports to the U.S. in 2026, though. Apparel as a category will be particularly hard hit by new duties, and Lu believes fashion firms “will face increased pressure to control their sourcing costs and protect their profit margins.”

With that scenario as a backdrop, fashion companies will likely turn to diversification to navigate market and trade policy uncertainties, he added. A 2025 Fashion Industry Benchmarking Study released by the U.S. Fashion Industry Association (USFIA) showed a record number of U.S. fashion brands and retailers (over 80 percent) were sourcing from 10 or more countries. Nearly 60 percent of them said their sourcing portfolios would continue to expand in 2026, and they’re looking for vendors with the ability to produce across multiple countries to mitigate risk.

Read the full article here.

Sourcing Journal: Why Fashion Companies Like Levi’s Are Pushing for a 15‑Year AGOA Extension

On a 19 May deadline, Sourcing Journal reports on the upcoming review and debate on AGOA's extension.

Jasmin Malik Chua | May 19, 2026

The following is an excerpt....

In its own comments calling for a minimum 15-year extension, the United States Fashion Industry Association hailed AGOA as an “undoubted success” for maintaining stable retail prices for American consumers by reducing landed costs and “de-risking” supply chains by lowering dependence on any one region, including China. But the trade group also warned that AGOA’s existing “graduation” provision—once a step toward a more “mature, mutually beneficial” trade relationship—currently penalizes developing African nations because the United States is no longer negotiating free trade agreements meant to replace those benefits.

“AGOA’s graduation provision could be amended in a variety of ways,” said Julia K. Hughes, USFIA’s president. “Congress could eliminate the graduation mechanism altogether; Congress could amend the provision so as to not graduate a country unless it has had a reasonable opportunity to negotiate a bilateral agreement with the U.S.; Congress could give the president the authority to decide whether or not a country should graduate; or Congress could amend the provision so that a country would not graduate unless it exceeded the income cutoff for five consecutive years.”

Read the full article here

Specialty Fabrics Review: U.S. textile groups unite behind trade incentive program to strengthen U.S. manufacturing

On a 6 July deadline, Yahoo Finance reports on the recent joint proposal from USFIA for a tariff credit program:

ATA | July 6, 2026

The following is an excerpt....

Industry organizations representing U.S. textile manufacturers, apparel brands and retailers urged the Trump administration to adopt a newly developed textile and apparel trade incentive program they proposed in a joint submission to the U.S. Trade Representative’s Office (USTR) July 6. This is the first time these organizations have teamed up to publicly advocate for a joint trade policy initiative.

In their written submission to USTR related to proposed actions in Section 301 investigations of various economies’ policies on goods made with forced labor, the groups — which normally take strongly divergent policy positions on trade — jointly proposed a program designed to “reshore domestic manufacturing, stabilize and grow Western Hemisphere textile and apparel supply chains, and help brands and retailers to diversify sourcing at a critical time.”

“Our joint efforts have resulted in the development of a novel trade incentive program that would achieve various important goals,” including “the revitalization and growth of U.S. textile manufacturing, exports and investment, resulting in over 56,000 new jobs” in the United States. Additionally, increased U.S. textile exports under the program could “drive billions of dollars of new domestic investment” and benefit the entire supply chain, including cotton farming, according to the joint submission.

The program is designed to “allow brands and retailers to earn tariff credits when they buy U.S. textiles and qualified apparel goods from key Western Hemisphere U.S. free trade agreement partners. Brands and retailers could then apply those credits to offset potential Section 301 tariffs from eligible countries — a win-win strategy to unlock significant growth for U.S. textile manufacturers, brands, and retailers,” the organizations state in their joint submission.

To view the full USTR submission, click here.

The associations developed and put forth the new incentive program in response to a textile mechanism proposed by USTR as part of the Section 301 investigations on forced labor.

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

If adopted by the administration, the groups note their textile and apparel trade incentives program “has the potential of doubling U.S. textile exports to the Western Hemisphere, reaching a total of $29 billion annually. This significant increase in U.S. textile exports would create substantial new U.S. jobs and unleash a much-needed wave of textile sector investment in the United States.”

The public submission was filed by the National Council of Textile Organizations (NCTO), American Apparel & Footwear Association (AAFA), United States Fashion Industry Association (USFIA) and the U.S. Industrial and Narrow Fabrics Institute (USINFI).

Read the full article here

Supply Chain Dive: Cotopaxi repays workers at Taiwan mills for predatory recruitment fees

On a 1 September deadline, Supply Chain DIve reports on Cotopaxi's response to potential forced labor in its supply chain:

Kelly Stroh | September 1, 2026

Dive Brief:

Cotopaxi repaid workers in two Taiwan fabric mills for the portion of predatory recruitment fees tied to the brand’s production volume at the facilities, per an environmental, social and governance report published in April.
After discovering the indicator of forced labor at the mills in 2024, Cotopaxi worked to address recruitment fee violations and advance worker protections, per the report. The outdoor gear maker collaborated with the American Apparel & Footwear Association, Fair Labor Association, Dignity in Work for All and Verité, an independent nonprofit organization supporting fair labor practices.
Outside of the predatory recruitment practices identified in Taiwan, Cotopaxi reported that it did not uncover any additional forced labor findings from its broader monitoring efforts.

Dive Insight:

Managing forced labor risks is a key issue for U.S. fashion companies in regard to sourcing and trade compliance, according to a 2026 Fashion Industry Benchmarking Study published by the U.S. Fashion Industry Association. The issue ranked as survey respondents’ No. 6 top concern for the year, up from 10th in 2025, per the report.

Several apparel companies have grappled with the risk of modern slavery across their supply chains. Ultra-fast fashion brand. Shein, for instance, in 2023 was probed by U.S. senators whether the company’s goods were made using forced labor. In 2024, Shein reported that it found two cases of child labor in its supply chain, which prompted the brand to suspend orders from those suppliers and conducted investigations. In 2024, a Skechers supplier was also accused of using forced labor.

In 2024, human rights investigation nonprofit Transparentem interviewed more than 90 migrant workers employed by textile suppliers in Taiwan, which revealed that there were forced labor indicators tied to predatory recruitment practices at those facilities, according to Cotopaxi’s 2024 Impact Report. Cotopaxi was one of more than 40 buyers linked to nine Tier 2 and Tier 3 Taiwan-based suppliers with evidence of labor abuses.

According to the International Labour Organization, predatory recruitment practices can occur during the recruitment process and lead to forced-labor conditions. This can include workers being charged recruitment fees and debt bondage linked to repayment of those fees, as well as deception around the nature and conditions of the work.

Cotopaxi maintains third-party audits of all its Tier 1 and Tier 2 suppliers while conducting “numerous” onsite visits to help create better transparency and monitoring of its supply chain, per the brand’s 2025 ESG report. Cotopaxi has a total of five fabric suppliers in Taiwan, according to its annually updated supplier data.

Aside from facility-level remediation, Cotopaxi said it is working to address the “root causes” of forced labor at the systems level by engaging with industry associations and policymakers, as well as leveraging its own resources and grant-making activities, according to the 2025 report. Cotopaxi has supported legislation including California’s Garment Worker Protection Act and the New York Fashion Sustainability and Social Accountability Act to combat human rights violations common in the apparel industry.

In regard to the labor abuse discovered in Taiwan, Cotopaxi visited suppliers based in the country in December 2024, per the 2024 report. Cotopaxi was also one of many companies seeking to have in-person conversations with the Taiwan’s government, the Taiwan Textile Federation and other government and foreign policy officials to root out abuses at the policy level.

This year, Cotopaxi also worked with the AAFA and peer brands to advance a “No Recruitment Fees” standard across Taiwan, advocating for suppliers to bear the cost of recruitment, per the 2025 report.

This isn’t the first time Cotopaxi has addressed unethical recruitment within its supply chain.

In 2022, a routine third-party audit identified risks associated with predatory recruitment practices at a Tier 1 supplier in the Philippines, including limited access to restrooms and pre-employment medical appointments not covered by suppliers.

To resolve the violations, Cotopaxi, alongside a working group and two other brands using the same supplier, tapped a third-party audit and remediation consultancy. In 2024, Cotopaxi announced that the remediation initiative was successfully completed.

Read the full article here.

Supply Chain Dive: Fashion brands plan to consolidate sourcing over next 2 years

On a 29 July deadline, Supply Chain DIve reports on results from USFIA's 2026 Benchmarking Study.

Kelly Stroh | July 29, 2026

The following is an excerpt....

A growing number of fashion brands are consolidating existing sourcing bases, opting to work with fewer but more capable vendors over the next two years, according to a 2026 Fashion Industry Benchmarking Study published by the U.S. Fashion Industry Association.

As part of a “new phase of sourcing strategy,” 30 U.S. fashion companies surveyed between April and June 2026 are adjusting their tactics due to ongoing trade and tariff uncertainty, per the study published in partnership with Sheng Lu, professor and director of graduate studies in the Department of Fashion and Apparel Studies at the University of Delaware.

Because U.S. tariffs will continue to have an impact on cost, “the goal is to maintain geographic diversity while consolidating sourcing networks to work more closely with key strategic partners overseas that offer sourcing flexibility and strong compliance,” USFIA President Julia Hughes said in a foreword.

Compared to 2025 statistics, substantially fewer brands plan to source from additional companies or expand their vendor network over the next two years, per the study. This means that instead of pushing rapid geographic expansion and diversification, some brands are prioritizing capacity, flexibility, inventory agility and regional balance.

For instance, last year Nike said it was negotiating with retail partners and suppliers to offset tariffs, among other actions. Ralph Lauren, meanwhile, said it would work closely with its suppliers to adjust production levels to countries with lower U.S. tariff rates. PVH Corp., which owns Calvin Klein and Tommy Hilfiger, last year outlined efforts to work with vendors and its supply base to curb tariffs.

Only about 21% of survey respondents plan to source goods from more countries through 2027 — a significant drop from nearly 59% in 2025. About 26% of surveyed brands plan to source apparel from more suppliers or vendors, down from 41% the year prior.

Meanwhile, nearly half of respondents plan to source from fewer suppliers over the next two years, which is almost three times the share reported in 2025.

According to selected comments, some survey respondents said they are consolidating to fewer vendors with production in several countries and implementing additional quality standards to rationalize the supplier base. Other brands said they are opting for a “lower number of vendors to stabilize lead time and cost.”

However, the shift in sourcing strategy does not “indicate a retreat from sourcing diversification” across the entire industry, per the report. Another brand said in a comment that it is looking to expand into new regions while pulling back in others.

“We have a very diverse country strategy. We just need to focus on building even stronger capabilities in the developing countries, where we have just started,” per another respondent comment.

While popular tariff mitigation strategies include applying for tariff refunds and exploring first sale valuation, about 58% of brands are diversifying sourcing, down from 83% the year prior. Meanwhile, 63% are renegotiating supplier contracts compared to 61% in 2025.

“The results suggest that U.S. fashion companies today view successful tariff mitigation as requiring not only sourcing capability but also strong expertise in trade regulations and close collaboration with suppliers and other supply chain stakeholders,” per the report.

Sourcing diversification has also become more geographically balanced compared to last year, according to the study. This year’s survey results show that respondents reported sourcing apparel products from 49 countries, up from 46 in 2025. Asia continues to be the dominant sourcing region, but the number of brands using suppliers in countries such as Vietnam and Bangladesh has declined.

However, despite a larger collective pool of sourcing countries, at an individual level, companies are relying on more concentrated supplier bases. While 65% of surveyed brands are procuring from 10 or more countries, only 7% reported sourcing from 20 or more in 2026, down from rates between 20% and 30% in 2024 and 2025.

“This result suggests that while sourcing diversification remains a key strategy among leading U.S. fashion companies in the current business environment, companies are also dynamically balancing other factors, such as risk, operational efficiency, and required resources,” per the report.

Read the full article here.

Supply Chain Dive: Tariffs aren’t swaying fashion brands toward domestic sourcing

On a 6 February deadline, Supply Chain DIve reports on ongoing US Trade policy uncertainty.

Kelly Stroh | October 8, 2025

The following is an excerpt....

There is “no clear evidence” that the Trump administration’s tariff policies have swayed U.S. fashion companies to up domestic sourcing, according to a 2025 Fashion Industry Benchmarking Study published from the U.S. Fashion Industry Association.

Each of the 25 fashion companies surveyed between April and June for the report said they expect higher tariff and trade barrier costs this year. Around 70% of respondents reported that they had delayed or canceled sourcing orders due to tariff hikes from the Trump administration.
So far, adjusting procurement networks has been the most commonly adopted tariff mitigation strategy, per the study, with more than 80% of respondents saying that they would diversify their production footprint to other countries and regions.

Read the full article here.

Textile World: The 2026 Fashion Industry Benchmarking Study By University Of Delaware Professors In Collaboration With The US Fashion Industry Association (USFIA) Now Available

On a 26 July deadline, Textile World shares important highlights from USFIA's 2026 Benchmarking Study:

July 26, 2026

NEWARK, DE — July 25, 2026 — In collaboration with the US Fashion Industry Association (USFIA), University of Delaware Professor Dr. Sheng Lu and Graduate Instructor Emilie Delaye, surveyed sourcing executives from 30 leading US fashion brands and retailers (80% with more than 1,000 employees) from April to June, 2026.

According to Sheng, the results, while there has been a slight increase in domestic sourcing and nearshoring as part of U.S. fashion companies’ sourcing diversification strategy, capacity building and a stable policy environment remain critical for continued sourcing expansion. Specifically:

76 percent of respondents sourced apparel from members of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) this year, up from 64 percent in 2025, and 24 percent sourced more than 10 percent of their apparel from the region, concentrated among large companies typically using 2–3 members such as Guatemala, El Salvador, and Honduras.
Respondents’ sourcing from members of the S.-Mexico-Canada Trade Agreement (USMCA), mainly from Mexico, held steady in 2026. However, respondents were hesitant to increase sourcing from the region due to concerns about the agreement’s uncertain future.
Over the next 2–3 years, respondents plan to continue concentrating their apparel sourcing from the Western Hemisphere in a relatively narrow range of product categories, including T-shirts (67 percent), activewear and athleisure (33 percent), and bottoms (27 percent) from CAFTA-DR and T-shirts (47 percent) and bottoms (20 percent) from USMCA. This pattern was consistent with findings from previous surveys and suggested that limited product diversification remained a major constraint on the future growth of U.S. apparel sourcing from the Western Hemisphere.
Most respondents (over 65 percent) 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 U.S. fashion companies’ nearshoring efforts under the current business environment. Additionally, 100 percent of respondents support maintaining the USMCA as a trilateral agreement.

The newly published 2026 Fashion Industry Benchmarking Study, report is available at: https://www.usfashionindustry.com/resources/research-reports/usfia-fashion-industry-benchmarking-study.

Read the full article here

Textile World: U.S. Textile, Apparel, And Retail Groups Unite Behind Innovative Textile And Apparel Trade Incentive Program To Strengthen U.S. Manufacturing

On a 6 July deadline, Textile World reports on industry organizations' submission to USTR regarding Section 301 investigations and proposed program to reshore domestic manufacturing:

July 6, 2026

The following is an excerpt....

WASHINGTON, D.C. — July 6, 2026 — Industry organizations representing U.S. textile manufacturers, apparel brands, and retailers urged the Trump administration to adopt a newly developed textile and apparel trade incentive program they proposed in a joint submission to the U.S. Trade Representative’s Office (USTR) today. This is the first time these organizations have teamed up to publicly advocate for a joint trade policy initiative.

In their written submission to USTR related to proposed actions in Section 301 investigations of various economies’ policies on goods made with forced labor, the groups—which normally take strongly divergent policy positions on trade—jointly proposed a program designed to “reshore domestic manufacturing, stabilize and grow Western Hemisphere textile and apparel supply chains, and help brands and retailers to diversify sourcing at a critical time.”

“Our joint efforts have resulted in the development of a novel trade incentive program that would achieve various important goals,” including “the revitalization and growth of U.S. textile manufacturing, exports, and investment, resulting in over 56,000 new jobs” in the United States.

Increased U.S. textile exports under the program could “drive billions of dollars of new domestic investment” and benefit the entire supply chain, including cotton farming.

The program is designed to “allow brands and retailers to earn tariff credits when they buy U.S. textiles and qualified apparel goods from key Western Hemisphere U.S. free trade agreement (FTA) partners. Brands and retailers could then apply those credits to offset potential Section 301 tariffs from eligible countries—a win-win strategy to unlock significant growth for U.S. textile manufacturers, brands, and retailers,” they state in their joint submission.

See a link to the full USTR submission here.

The associations developed and put forth the new incentive program in response to a textile mechanism proposed by USTR as part of the Section 301 investigations on forced labor.

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

If adopted by the administration, the groups note their textile and apparel trade incentives program “has the potential of doubling U.S. textile exports to the Western Hemisphere, reaching a total of $29 billion annually. This significant increase in U.S. textile exports would create substantial new U.S. jobs and unleash a much-needed wave of textile sector investment in the United States.”

The public submission was filed by the National Council of Textile Organizations (NCTO), American Apparel & Footwear Association (AAFA), United States Fashion Industry Association (USFIA), and the U.S. Industrial and Narrow Fabrics Institute (USINFI).

Read the full article here

The Express Tribune: Pakistan's textile vision takes centre stage in Canada

On a 9 October deadline, the Express Tribune reports on the upcoming ATS 2025 Conference.

October 9, 2025

The following is an excerpt....

Julie Hughes, president of the US Fashion Industry Association, echoed the sentiment, stressing that in unpredictable times it was "more important than ever" for US and Canadian brands to meet key global suppliers.

Her association participated in discussions on how trade policy developments in the United States could impact sourcing decisions across North America, underscoring the interdependence of regional markets.

The programmes also included daily sessions led by trend forecasting agency Peclers Paris, which made its debut at the Canadian show. The agency offered insights into colour forecasting, brand strategy, and the evolving aesthetics of global fashion.

Read the full article here.

The Financial Express: American brands push for tax refunds as RMG exporters eye order surge

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

Monira Munni| February 23, 2026

Two major American trade organisations representing textile and apparel brands, retailers and importers have demanded refunds of import taxes following a US Supreme Court ruling that struck down President Donald Trump's sweeping global tariffs.

The American Apparel and Footwear Association (AAFA) and the United States Fashion Industry Association (USFIA) welcomed the Supreme Court decision that invalidated the use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs and mandated refunds of hundreds of billions of dollars collected under the measure.

Meanwhile, garment exporters in Bangladesh expect increased work orders from US buyers, saying the court ruling could improve buyers' purchasing capacity once the import taxes they paid are refunded.
In a statement on Friday, AAFA President and CEO Steve Lamar said, "We are confident in Customs and Border Protection's (CBP's) ability to move quickly and provide clear guidance to American businesses on how to obtain refunds for tariffs that were unlawfully collected."

He added that the CBP's modernised electronic refund process should help expedite repayments and urged the administration to work with Congress and stakeholders before considering any future tariff action.

The AAFA represents apparel, footwear and other sewn-product companies and their suppliers competing in the global market, contributing more than $523 billion annually in US retail sales.

In a separate statement, USFIA President Julia Hughes termed the Supreme Court ruling a "tremendous victory" for American consumers and businesses, noting that fashion brands and retailers already paid some of the highest tariffs on apparel and footwear.
She said that this is a positive step forward to improve affordability and remove the economic uncertainty that has held back many companies from making new investments.

"We call on the Trump Administration to move quickly to develop an efficient and automatic refund process that returns tariff money to the businesses that have paid more than $133 billion in IEEPA tariffs," she added.
USFIA represents textile and apparel brands, retailers, importers, and wholesalers based in the United States and doing business globally.

Talking to the FE, Shovon Islam, managing director of Sparrow Group, said that after the court ruling, American buyers are likely to receive tax refunds, which will improve their financial situation.

Buyers had reduced order volumes following the tariff hikes as the added costs weakened consumer demand and forced them to adjust purchases within their existing budgets, he explained.

Islam added that a subsequent 15 per cent tariff announcement by Trump -- lower than the earlier 19 per cent applied to Bangladesh -- would not create major difficulties for buyers.

He also said Bangladesh could become a preferred destination for US buyers as orders shift from China.

According to US official data, Bangladesh earned $8.20 billion from garment exports to the US, posting 11.75 per cent year-on-year growth despite an overall decline in America's apparel imports.

View the full article here.

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.

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.

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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.

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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.

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...

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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.

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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.

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Western Hemisphere

On a 20 February deadline, Sourcing Journal reports on the recent Supreme Court Ruling regarding IEEPA Tariffs.

On a 4 May deadline, Sourcing Journal reports on the inputs needed to rebuild the US Textile Manufacturing industry.

On a 21 October deadline, Sourcing Journal reports on recent labor abuse reports in Nicaragua:

On a 12 June deadline, Sourcing Journal reports new sourcing opportunities in the Western Hemisphere.

On a 2 January deadline, Sourcing Journal reports on tariffs' effect in 2025.

On a 19 May deadline, Sourcing Journal reports on the upcoming review and debate on AGOA's extension.

On a 6 July deadline, Yahoo Finance reports on the recent joint proposal from USFIA for a tariff credit program:

On a 1 September deadline, Supply Chain DIve reports on Cotopaxi's response to potential forced labor in its supply chain:

On a 29 July deadline, Supply Chain DIve reports on results from USFIA's 2026 Benchmarking Study.

On a 6 February deadline, Supply Chain DIve reports on ongoing US Trade policy uncertainty.

On a 26 July deadline, Textile World shares important highlights from USFIA's 2026 Benchmarking Study:

On a 6 July deadline, Textile World reports on industry organizations' submission to USTR regarding Section 301 investigations and proposed program to reshore domestic manufacturing:

On a 9 October deadline, the Express Tribune reports on the upcoming ATS 2025 Conference.

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

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

On a 20 July deadline, Vogue Business reports on recent trade agreement reviews' impact on sourcing plans:

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

On a 3 August deadline, Vogue Business reports on the effects of tariffs on Western Hemisphere sourcing:

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

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

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