July 29, 2025
FOR IMMEDIATE RELEASE
Tariffs and Trade Wars Disrupt the Fashion Industry
Washington, D.C. – The United States Fashion Industry Association (USFIA) invites the Press to join the Webinar for the release of the twelfth annual Fashion Industry Benchmarking Study, a survey of executives from 30 leading fashion brands, retailers, importers, and wholesalers, including some of the largest brands and retailers in the country.
Conducted in conjunction with Dr. Sheng Lu, Professor and Director of Graduate Studies in the Department of Fashion and Apparel Studies at the University of Delaware, the survey asked respondents about their business outlook, sourcing practices, and views on trade policy.
Here are a few of the highlights from the 2025 Fashion Industry Benchmarking Study:
Tariffs Already Are Disrupting Brands and Retailers
Over 70% report higher tariffs have:
Increased sourcing costs
Squeezed profit margins
Led to higher consumer prices
Nearly 50% cited declining sales
22% have already laid off employees
Buyers and Suppliers Are Making Tough Decisions
More than two-thirds have delayed or canceled orders
Suppliers sharing tariff costs risk going out of business
Companies Continue to Plan for Supply Chain Diversification
Companies sourced apparel from 46 countries in 2025. 60% say they will source apparel from MORE countries (except from China).
Despite tariff policies, there's no clear evidence of increased domestic sourcing.
Only 17% of respondents plan to source more U.S.-made textiles and apparel in response to tariff increases.
To speak with USFIA, contact
To speak with Dr. Sheng Lu, contact
Click here to download the Fashion Industry Benchmarking Study for 2025.
About Dr. Sheng Lu
Dr. Sheng Lu is a Professor and Director of Graduate Studies in the Department of Fashion and Apparel Studies at the University of Delaware. He also served as a consultant for the International Trade Centre (ITC) co-run by the World Trade Organization (WTO) and the United Nations (UN). With over 80 publications in academic and trade journals, Dr. Lu’s research focuses on the economic and business aspects of the textile and apparel industry, including international trade, trade policy, and the governance of the global apparel value chain. Dr. Lu received the 2014 Rising Star Award and 2019 Mid-Career Excellence Award from the International Textile and Apparel Association (ITAA) to recognize his research and teaching excellence. He has also been the multiple-time recipient of the Paper of Distinction Award at the ITAA annual conferences for his study on the specific-sectoral impact of mega-free trade agreements on textile and apparel. Several of his studies were cited by government reports such as the Congressional Research Service (CRS) studies prepared for members of the U.S. Congress, U.S. International Trade Commission (USITC) official assessment on the economic impacts of free trade agreements as well as the World Bank, International Labor Organization, and the United Nations research publications. Dr. Lu’s published works have also been translated into Chinese, Vietnamese, Spanish, and Thai and regularly featured by media outlets, including the Wall Street Journal, New York Times, NPR, Washington Post, Reuters, BBC World News, and CNN, among others.
More Information: https://shenglufashion.com/blog/
About the United States Fashion Industry Association
The United States Fashion Industry Association (USFIA) is dedicated to fashion made possible by global trade. USFIA represents textile and apparel brands, retailers, importers, and wholesalers based in the United States and doing business globally; working to eliminate tariff and non-tariff barriers that impede the industry’s ability to trade freely and create economic opportunities in the United States and abroad with the goal of doing what we can to make the world a better place for our customers, our colleagues, and our suppliers.
More Information: www.usfashionindustry.com